The Ban Congressional Stock Trading Act, specifically S.3494, was introduced in the 117th Congress (2021-2022) to prohibit members of Congress and their spouses from owning or acquiring individual stocks. This bill aimed to prevent potential conflicts of interest and promote transparency in government.
*Key Provisions:*
- *Prohibition on Stock Ownership*: Members of Congress and their spouses would be barred from owning individual stocks.
- *Blind Trusts*: To comply with the ban, lawmakers might be required to place their assets in blind trusts.
*Rationale:*
- *Prevent Conflicts of Interest*: By restricting individual stock ownership, the bill seeks to prevent lawmakers from making decisions that benefit their personal financial interests.
- *Promote Transparency*: The ban aims to increase public trust in government by reducing the potential for insider trading and other forms of corruption.
*Current Status:*
The bill was introduced in the Senate but did not become law during the 117th Congress. Similar proposals have been introduced in subsequent Congresses, indicating ongoing efforts to address concerns about congressional stock trading .
The information regarding the ban on congressional stock trading is current up to January 15, 2025. There are ongoing efforts to pass legislation that would prohibit members of Congress, their spouses, and dependent children from trading individual stocks.
Two relevant bills are :
- *TRUST in Congress Act*: This bipartisan bill, reintroduced in January 2025, aims to ban lawmakers and their immediate family members from owning individual stocks. It requires them to either divest from individual stock holdings or move their investments into a qualified blind trust.
- *No Corruption in Government Act*: Introduced in January 2025, this bill would prevent members of Congress and their spouses from holding or trading individual stocks, repeal automatic annual pay raises, and triple the lobbying ban for lawmakers.
Additionally, President Donald Trump is considering a ban on stock trading by members of Congress, according to recent reports. These developments indicate that the issue is actively being addressed in the current legislative session.