The House Bans Lawmakers from Buying Stocks but Allows Them to Sell

By: rootdata|2026/07/26 06:00:00

The U.S. House of Representatives has taken a new step in regulating investments made by lawmakers. Representatives have adopted a measure that now prohibits members of Congress, their spouses, and dependent children from purchasing publicly traded stocks, while allowing them to retain and sell stocks they already own. This decision opens a new debate on preventing conflicts of interest ahead of the Senate's review of the bill.

In brief

  • The House adopts a ban on stock purchases for lawmakers.
  • Legislators will still be able to retain and sell their stocks.
  • The measure includes fines and the return of illicit gains.
  • The bill is now sent to the Senate for review.

The U.S. House of Representatives passed the bill by a vote of 232 to 198 before sending it to the Senate. This measure, introduced by Wisconsin Representative Bryan Steil, aims to prevent members of Congress from profiting from insider information during their investments. The stated goal is to strengthen trust in institutions while limiting the risks of insider trading.

Bryan Steil, a Wisconsin lawmaker, asserts that this reform includes significant financial penalties for violations. Offenders would face a fine of $2,000 or 10% of the amount of the transaction in question.

Additionally, they would be required to return all profits made from any operation deemed illegal. This provision seeks to discourage any stock purchases made based on non-public information, according to his statements.

However, the measure only concerns a portion of public officials. The proposal targets only members of Congress, their spouses, and dependent children. The president, vice president, and their families are not included in this legislative framework, unlike other proposals currently being studied in Washington.

While the House now prohibits new purchases, it still allows lawmakers to retain and sell stocks they already own. This provision is the main point of disagreement surrounding the bill. Several political leaders believe that this exception significantly limits the scope of the reform.

Nevertheless, Bryan Steil defends this approach by explaining that it introduces an additional transparency mechanism. Members of Congress will need to provide notice seven days prior to any sale of stocks they already hold. According to him, this requirement reduces the opportunities to profit from confidential information before a transaction.

Senator Elizabeth Warren, however, contests this analysis. The senator believes that lawmakers will still be able to own and sell stocks, which does not fully address the risks of conflicts of interest. She wrote in a post on Bluesky:

She argues that lawmakers should neither buy, own, nor sell financial securities. For this reason, she believes that the bill should not be adopted by the Senate in its current form.

After its adoption by the House of Representatives, the bill is now following its legislative path before the U.S. Senate. However, this proposal is different from the Digital Asset Market CLARITY Act, which is also being reviewed by senators. While the latter concerns the structure of the cryptocurrency market, the proposal led by Bryan Steil focuses solely on investments made by lawmakers.

At the same time, Bryan Steil supports another proposal dedicated to prediction markets. This measure targets politicians using platforms like Kalshi or Polymarket to bet on public decisions or political events. The proposed penalties follow the same principle as that applied to stocks, with a fine of $2,000 or 10% of the value of the prohibited transactions.

Interest in prediction markets has increased following several high-profile cases involving significant gains made on political events. These episodes have fueled discussions about better regulation of investments and betting involving public officials. The Senate will now have to decide whether the bill adopted by the House retains its current balance or needs to be modified before a potential final adoption.

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