EXCLUSIVE — Speaker Mike Johnson (R-LA) is being pressed by a House Democrat to call up legislation to ban members of Congress and their families from trading stocks, an issue that has received broad support from both sides of the aisle.
Rep. Raja Krishnamoorthi (D-IL) sent a letter, obtained exclusively by the Washington Examiner, to Johnson on Monday to express “deep concern” that members of Congress’ stocks benefited from the “market volatility” that came with President Donald Trump‘s “Liberation Day” tariffs that are currently under a 90-day pause.
Krishnamoorthi, who is the ranking member of the House Select Committee on the Chinese Communist Party, said the president’s partial reversals on his tariffs “presented a clear opportunity for those with advance knowledge” to “reap significant financial benefit by trading stocks accordingly.” He also pointed to Trump’s Truth Social post that said, “IT’S A GREAT TIME TO BUY!!!” before he announced some pauses and lower rates.
“This is only the latest in a series of controversies in which elected officials are perceived to be using their unique access to non-public information to engage in unethical and improper behavior like insider trading,” Krishnamoorthi wrote.
He asked Johnson to schedule a vote to pass his “Bipartisan Restoring Faith in Government Act,” one of many pieces of legislation that seeks to ban stock trading for congressional lawmakers and their relatives. He co-authored the legislation with Reps. Brian Fitzpatrick (R-PA), Cory Mills (R-FL), and Alexandria Ocasio-Cortez (D-NY).
“It is our responsibility to ensure that Members are serving the American people and not day trading stocks and profiting from the position to which they are elected,” Krishnamoorthi said.
Banning stock trading has been a bipartisan target for several years, despite former Speaker Nancy Pelosi (D-CA) being strongly against a ban during her time as the leader of the House Democratic Party.
But the calls for preventing unfair stock trading by lawmakers grew after public disclosures found that Rep. Marjorie Taylor Greene (R-GA) purchased stocks during a tariff-induced dip in the market that later rose in value after Trump partially reversed his executive action. Democrats have accused many other Republicans of “market manipulation” due to Trump’s push to buy ahead of the pause on tariffs.
The longtime issue has received pushes from both Democrats and Republicans over the years. The STOCK Act, signed into law in 2012, prohibits members from acting on insider information and requires them to report their trades within 45 days. However, the law is more of a slap on the wrist rather than a binding offense, with only a penalty fine of $500. Members have received no punishments for the violations, either.
Other legislation that is similar to Krishnamoorthi’s bill is the TRUST Act, introduced by Reps. Chip Roy (R-TX) and Seth Magaziner (D-RI). The piece of legislation has 63 cosponsors as of Tuesday, compared to eight cosponsors on the Bipartisan Restoring Faith in Government Act.
If Johnson called a vote on a ban on stock trading in Congress, he would have support from House Minority Leader Hakeem Jeffries (D-NY). Jeffries extended his support for a ban despite his predecessor, Pelosi’s, feelings on the issue.
JEFFRIES BACKS STOCK TRADING BAN FOR LAWMAKERS PREVIOUSLY SHUNNED BY PELOSI
“One, we do need to change the law so that sitting members of Congress cannot trade stock, period. Full stop,” Jeffries said last week. “And until we get to that point, we obviously have to continue to highlight why this is problematic. And if Republicans are unwilling to hold a hearing on this matter, I can assure you Democrats will, on Capitol Hill, in partnership with the Senate. And we also will take this matter on the road.”
The Washington Examiner reached out to Johnson for comment.