The Levin Letter: Public Trust or Private Profit? We Must Ban Congressional Stock Trading
Trust in government rests on one simple principle: the people you elect should be working for you, not for their personal gain. Unfortunately, when members of Congress are allowed to buy and sell stocks while in office, it undermines that trust and creates the perception that lawmakers are using privileged information to enrich themselves.
That’s why I joined a bipartisan group of Democrats and Republicans to introduce legislation banning all members of Congress from holding and trading individual stocks. Our bill would require lawmakers to sell all individual stocks within 180 days of its passage. No loopholes. No “blind” trusts. No excuses.
The need for reform is clear. According to Gallup, nearly half of Americans say they have “very little” confidence in Congress. Pew Research Center finds that seven in ten hold an unfavorable view of Congress. These numbers reflect a deep erosion of public trust, and stock trading by lawmakers is one reason why. When voters believe their representatives may be using inside knowledge to profit personally, faith in democracy itself is at risk.
Evidence backs up those concerns. A New York Times investigation found that from 2019 to 2021, nearly one in five members of Congress traded stocks in sectors directly related to the committees they sat on. That means lawmakers with the power to write laws and shape regulations were simultaneously buying and selling shares in companies directly affected by their decisions. Even if every one of those trades was technically legal, the conflicts of interest are glaring.
Treasury Secretary Scott Bessent recently noted that members of both parties have posted “eye-popping returns” in the stock market. Why is that? No American should have to wonder whether their elected officials are voting in the public interest or protecting their personal investments.
The demand for reform cuts across party lines. A University of Maryland study found overwhelming bipartisan support for banning stock trades by members of Congress: 87% of Republicans, 88% of Democrats, and 81% of Independents favor it. That kind of consensus is rare in today’s politics.
Yet despite overwhelming public support, Congress has failed to act.
A decade ago, lawmakers passed the STOCK Act, which requires members of Congress to disclose trades of more than $1,000 within 30 days. It was supposed to increase transparency, but it hasn’t solved the problem. Fines for violations are minimal, and compliance is spotty. Over and over, members fail to disclose trades on time and face no real consequences. Disclosure isn’t enough. A system that leaves doubt about whether representatives are serving the public or themselves is a system in dire need of reform.
Passing this bill won’t solve every problem with public trust in government, but it would send a powerful message that Congress can hold itself accountable. And this time, the politics are on our side. House Speaker Mike Johnson, Democratic Leader Hakeem Jeffries, and even President Trump have all expressed support for a ban. That creates a rare moment of bipartisan agreement and momentum we must seize.
When voters send us to Washington, they deserve to have confidence that we’re using the information we gain in service of the public, not to pad our own pocketbooks. Banning congressional stock trading is one of the most important steps we can take to restore faith in our institutions and prove that Congress is working for the people.
By: Rep. Mike Levin
Source: Picket Fence Media