New Legislation Seeks to Ban Stock Trading by Members of Congress

A new proposal making its way through Congress is calling for a significant shift in how lawmakers manage their personal investments. The legislation, introduced in both the House and Senate, seeks to prohibit members of Congress and their spouses from trading individual stocks while in office, in an effort to restore public trust and prevent conflicts of interest.

The bill, formally titled the Preventing Elected Leaders from Owning Securities and Investments Act, or the PELOSI Act, was introduced by Missouri Senator Josh Hawley and Representative Mark Alford. The proposal follows years of public concern over potential financial conflicts involving lawmakers who buy and sell stocks while having access to sensitive, non-public information.

Under the proposed law, members of Congress and their spouses would be banned from owning, purchasing, or selling individual stocks during their time in office. However, the legislation does not prohibit investment in diversified assets such as mutual funds, exchange-traded funds (ETFs), or U.S. Treasury bonds—financial instruments that are considered less likely to present conflicts of interest.

“The goal is simple,” said Rep. Alford in a public statement. “We want to eliminate even the appearance of impropriety. Public service should be about the people, not personal profit.”

Sen. Hawley echoed the sentiment, saying that Congress must act decisively to end a practice that many Americans believe undermines the integrity of elected officials. “When citizens see politicians benefiting from insider knowledge, it creates a gap in trust,” he said. “This legislation is about closing that gap.”

The proposal allows lawmakers a 180-day grace period to comply, either by divesting from individual stocks or moving their investments into approved options. Any violations would result in the forfeiture of any profits made from trades and may also carry monetary penalties determined by congressional ethics committees.

Though the bill’s name references former Speaker of the House Nancy Pelosi, it does not target any individual. Instead, it aims to establish uniform standards across Congress. Speaker Pelosi, who has served in Congress for decades and broke barriers as the first female Speaker, has previously faced scrutiny over her husband’s stock trades, despite no formal allegations of wrongdoing.

Importantly, support for the bill is not limited to one political party. Lawmakers from across the aisle have expressed interest in reforming congressional trading rules. Among them is Representative Ro Khanna of California, who has long called for stricter ethical guidelines. “There should be no question about whose interests we serve,” Khanna said in a recent interview. “Public officials must be held to a higher standard.”

The initiative has also drawn support from current House Speaker Mike Johnson, who commented on the need to protect the credibility of public office. “There’s a history of abuses—some isolated, some more concerning—and this bill is one way to address that perception,” he said.

The proposed law builds on past discussions in Congress about ethics and transparency. Previous attempts to introduce similar legislation have stalled, often due to differences in approach or concerns about how to implement the rules fairly and effectively. However, with growing bipartisan momentum and continued public interest, supporters of the PELOSI Act believe this time may be different.

In a recent interview, former President Donald Trump also indicated support for the bill, stating that he would sign it into law if given the opportunity. His comments reflect the broader appeal of the proposal across the political spectrum.

As discussions continue, the bill’s future remains uncertain, but the attention it has received signals a significant moment in the ongoing effort to improve accountability in government. If passed, the PELOSI Act could mark a turning point in how elected officials manage personal finances while serving in public office—potentially setting a new ethical standard for years to come.

While debates over stock trading by lawmakers are not new, the growing call for reform suggests that trust in public service remains a top concern for many Americans. As the legislation moves forward, the focus remains on ensuring transparency, fairness, and public confidence in the nation’s legislative institutions.