Congressman Krishnamoorthi Partners with Bipartisan Coalition to Introduce New Consensus Congressional Stock Ban
The Restore Trust in Congress Act bans Members of Congress and their families from trading individual stocks
WASHINGTON – Congressman Raja Krishnamoorthi (D-IL), joined by a bipartisan coalition of 15 other Members of Congress, introduced the Restore Trust in Congress Act, legislation to prohibit Members of Congress, their spouses, and dependent children from trading individual stocks and other securities. The bill establishes a clear process for divestment, strong penalties for violations, and commonsense exceptions for diversified mutual funds, U.S. government bonds, and certain family or occupational assets. It represents the broadest bipartisan agreement yet on a congressional stock-trading ban. The other lead sponsors of the legislation are Reps. Chip Roy (R-TX), Seth Magaziner (D-RI), Brian Fitzpatrick (R-PA), Pramila Jayapal (D-WA), Tim Burchett (R-TN), Alexandria Ocasio-Cortez (D-NY), Anna Paulina Luna (R-FL), Josh Riley (D-NY), Zach Nunn (R-IA), Michael Cloud (R-TX), Rep. Dave Min (D-CA), Ralph Norman (R-SC), Joe Neguse (D-CO), Scott Perry (R-PA), and Mike Levin (D-CA).
“When Members of Congress are allowed to trade stocks in the very companies they regulate, it doesn’t just look like a conflict of interest — it is a conflict of interest, and it shatters trust in our democracy,” Congressman Krishnamoorthi said. “The Restore Trust in Congress Act is straightforward: if you choose to serve in Congress, you forgo the right to trade individual stocks. If you want to gamble on Wall Street, don’t run for Congress — our bet should be on the American people.”
Summary of the Restore Trust in Congress Act’s Stock Trading Ban
Covered Assets: Prohibits Members, spouses, dependent children, and trustees from owning, buying, or selling individual stocks, securities, commodities, or futures. Allows exceptions for diversified mutual funds and ETFs, U.S. government bonds, precious metals, small business interests, and limited family trust assets.
Divestment Requirements: Current Members must divest prohibited assets within 180 days of enactment; incoming Members within 90 days. Inherited assets must be divested within 90 days. Members may apply for limited extensions in cases of illiquidity or contractual restrictions.
Tax Fairness: Defers capital gains taxes on divested assets if reinvested in permitted vehicles, mirroring the Certificate of Divestiture process available to executive branch officials.
Enforcement & Penalties: Administered by the supervising ethics office, with fines equal to 10% of the value of the asset plus disgorgement of profits. All fines and disciplinary actions will be publicly disclosed.
The congressman’s full remarks are available here.