The US House of Representatives approved a congressional stock trading ban by a vote of 232 to 198, sending the measure to the Senate despite criticism that it leaves existing holdings untouched.
summary
- The House of Representatives passed the law to stop insider trading by a vote of 232 to 198.
- Elizabeth Warren criticized loopholes that allow lawmakers to hold and sell existing stocks.
- Brian Steele has proposed similar restrictions on Congress’ bets on market forecasts.
According to A statement From the office of Representative Brian Steele, the House approved the Halt Insider Trading Act on Wednesday, July 22. The Wisconsin Republican introduced the legislation in January and urged senators to send it to President Donald Trump for his signature.
Under the bill, members of Congress, their spouses and dependent children would no longer be allowed to purchase securities issued by publicly traded companies. This restriction applies to new purchases, but lawmakers and their relatives can keep shares already in their portfolios.
Existing shares can still be sold, provided the owner provides public notice before the deal. The bill requires at least seven days’ notice and no more than 14 days’ notice before a planned sale, with filings to be made to the Clerk of the House or Secretary of the Senate.
Steele introduced the proposal as a way to prevent lawmakers from using information obtained through public office for personal gain. Speaking after its passage, he called the bill “a big step forward for ethics reform on Capitol Hill.”
Penalties will combine financial fees with loss of trading profits. Congressional ethics committees impose either $2,000 or 10% of the value of the covered investment, whichever is higher, while violators must also forfeit any profits earned from a prohibited transaction.
During the debate in the House, Steele noted that lawmakers had not previously had a similar opportunity to vote on the issue. The bill received bipartisan support, although the 232 votes in favor represented only a small share of the chamber.
Senate opposition threatens to ban stock trading
After receiving the legislation on Thursday, the Senate became the next hurdle for Steele’s proposal. Sen. Elizabeth Warren, a Massachusetts Democrat who has supported stricter trading restrictions in Congress, rejected the House language because it would allow officials to keep and sell shares they already own.
“The bill has significant holes,” Warren wrote Thursday, adding that the current version “will not be brought up in the Senate.” She said members of Congress should be prohibited from owning, buying or selling individual stocks rather than face restrictions essentially limited to future purchases.
Steele has defended the advance notice requirement as a deterrent against deals based on confidential information. Because the planned sale will become public before implementation, lawmakers could face scrutiny over the deal and any government action related to the company.
However, Warren’s objection points to a fundamental difference between the two approaches. The restriction she favors would force lawmakers to give up individual stock ownership, while the House bill would allow existing portfolios to stay in place and regulate how they sell their holdings.
The proposal also covers fewer federal officials than the ethics language considered part of the Digital Asset Market Clarity Act. Steele’s stock bill applies to Congress and immediate family members specified in the text, leaving the president, vice president and their families outside its restrictions.
Revised edition of 616 pages The law of clarity The draft takes a different approach to crypto-related conflicts. According to the proposed text reported this week, the federal officials covered, including the president, vice president, lawmakers and federal judges, would be Issuing or sponsoring digital assets is prohibited Until January 20, 2029.
Cryptocurrency brokers will also be prohibited from listing assets issued or supported in violation of these provisions. Unlike the permanent trading rules proposed by Steil, CLARITY’s ethical restrictions will expire on the specified 2029 date.
Prediction market rules target similar conflicts
Along with equity legislation, Steele proposed a separate measure covering bets made through forecasting platforms such as Kalshi and Polymarket. The chairman of the House Administration Committee introduced a law preventing lawmakers from making predictions on June 18, citing the risk of officials taking advantage of information not available to the public.
According to House management committeeThe legislation would prevent members of Congress, their spouses and dependent children from betting on political outcomes or public policy issues. Steele said lawmakers should write policy rather than bet on its outcome.
Its sanctions structure closely follows the House-approved stock bill. Violation will result in a fee equal to $2,000 or 10% of the value of the prohibited bet, whichever is higher, in addition to the forfeiture of the net profit from the contract.
Public scrutiny of prediction markets has increased following reports of users profiting from political information. One of the reported cases involved a soldier It allegedly happened More than $400,000 in contracts linked to the overthrow of Venezuelan President Nicolas Maduro in January by US forces.
Trump’s previous teleprompter operator was disconnected I mentioned For more than $90,000 in Kalshi contracts related to words and phrases used during the President’s speeches. Arizona officials later cited the reported activity while tightening rules against public employees who use non-public information on forecasting platforms.
Steele’s two proposals apply the same principle to different financial products: Congressional officials should not be able to convert privileged knowledge into personal returns. However, their progress is different now, as the stock bill awaits action from the Senate while the market prediction measure remains early in the legislative process.
