Congressional stock trading isn’t just unethical; it’s bad for business

Business for America applauds the introduction of several bipartisan bills in Congress that would prohibit members, their spouses, and dependent children from trading individual stocks. Such legislation would help restore public confidence and hold lawmakers to the same ethical standards expected in both public service and the private sector.

We are encouraged by the diverse coalition of representatives and senators that are supporting these bills. Members spanning the political spectrum are leading the charge, including Seth Magaziner (D-RI), Chip Roy (R-TX), Alexandria Ocasio Cortez (D-NY), Josh Hawley (R-MO), and Jon Ossoff (D-GA). We agree that legislation is needed to guard against conflicts of interest and insider trading and should require lawmakers and their immediate families to divest from individual stocks or place them in qualified blind trusts while in office.

Recent data shows that dozens of lawmakers have significantly outperformed the market—raising serious concerns about the potential misuse of non-public information. Moreover, 86% of Americans support banning individual stock trading by lawmakers and their live-in family members. This perceived unfairness undermines trust in government and distorts market integrity—damaging both democracy and business.

As members of the business community, we welcome public investment and are committed to creating long-term value for shareholders. But the integrity of our markets depends on a level playing field. Lawmakers should not be positioned to benefit personally from non-public information or policy decisions that directly impact our industries. Such conflicts erode public trust, distort competition, and weaken confidence in both government and the economy.

The TRUST in Congress Act and other similar legislation represent a clear, bipartisan step toward rebuilding faith in our democratic and economic institutions. With Speaker Mike Johnson now supporting a ban, momentum for reform is growing. We urge all members of Congress to support the adoption of clear rules against being able to trade stocks while having access to privileged information. 

It’s time for Congress to lead by example and pass this commonsense reform. Public service should be a sacred trust—not a trading strategy.