House Passes Bill Restricting Lawmakers From Buying Stocks

The US House of Representatives has passed legislation aimed at stopping members of Congress, along with their spouses and dependent children, from purchasing publicly traded stocks. The Stop Insider Trading Act cleared the House in a 232-198 vote and now heads to the Senate for further consideration.

Bill Sponsor Says Measure Closes Insider Trading Loopholes

Representative Bryan Steil, who sponsored the bill, said the legislation ensures lawmakers cannot profit from insider information and includes strict penalties for violations, including a fine of $2,000 or 10% of the transaction along with forfeiture of any profits gained. Under the bill, lawmakers who already hold stocks would need to give seven days’ notice before selling.

Critics Say The Bill Doesn’t Go Far Enough

Senator Elizabeth Warren criticized the legislation, arguing it contains major loopholes since lawmakers would still be permitted to own and sell existing stock holdings. She said the bill would not solve the underlying problem and does not expect it to pass the Senate in its current form.

Related Prediction Market Restrictions Also Advancing

Steil earlier introduced a separate bill targeting lawmakers who trade on prediction market platforms such as Kalshi and Polymarket, following public attention on high-profile betting cases tied to political outcomes and presidential speeches.