Reps. Roy, Magaziner Introduce Historic Bipartisan Bill to Prevent Members of Congress from Trading Stocks

Washington, D.C. — Representatives Chip Roy (R-TX-21) and Seth Magaziner (D-RI-2) introduced new historic bipartisan legislation today, H.R. 5106, the Restore Trust in Congress Act. This legislation aims to ban Members of Congress and their families from engaging in insider trading and reconciles several previously introduced bills on the subject.

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Watch the bipartisan press conference on historic congressional stock trading legislation here or above.

Congressman Chip Roy (R-TX-21) said: "It’s far past time to ban Members of Congress from day trading stocks, and for the first time, a bipartisan coalition is standing together behind a united proposal to do just that.  The Restore Trust in Congress Act ensures that members of Congress will no longer be able to put the stock market first in their official decisions. This bill strikes a balance between being easy to comply with, but without tons of loopholes for Members to continue trading while on the job.  We must vote on this bill and put this conflict of interest to bed for once and for all. I look forward to seeing the Restore Trust in Congress Act move through the legislative process."

Congressman Seth Magaziner (D-RI-2) said: "We must take a strong stand against corruption and end stock trading by members of Congress once and for all. I have made banning Congressional stock trading a priority through my time in the House, and this bipartisan bill is our best chance at finally getting it done.”

Congresswoman Pramila Jayapal (D-WA-7) said: “We are governing in a moment when public trust is at historical lows. Only two in ten Americans trust the government to do what is right for them and they are constantly seeing their elected officials selling them out to the highest bidder. They see the people elected to represent them instead of making decisions to increase their own personal wealth. Finally, we are putting the American people first with this bipartisan legislation, which will ban stock trading for Members of Congress and set a new standard of integrity.”

Congresswoman Alexandra Ocasio-Cortez (D-NY-14) said: “The information we have access to as members of Congress should only be used to serve our constituents, not ourselves. Because of the support of the American people on this issue, we have generated the momentum necessary to be able to introduce the bipartisan Restore Trust in Congress Act. And we look forward to bringing this to the floor and banning the trading of individual stock by members of Congress."

Congressman Brian Fitzpatrick (R-PA-1) said: “Ending congressional stock trading has been one of my top priorities every Congress, because it speaks to something bigger than politics: trust. A bipartisan coalition of this magnitude sends a clear message to the American people: we hear you, and we’re taking action to ensure no Member of Congress uses public office for personal gain once and for all. If you’re in Congress, you serve the public interest—not your portfolio. We owe the American people nothing less, and we won’t stop fighting until this bill becomes law.”

Congresswoman Anna Paulina Luna (R-FL-13) said: “No one sent to Congress should be enriching themselves through Wall Street while writing the very laws that regulate our markets. This bill is about accountability, transparency, and restoring faith in the institution of Congress."

Congressman Tim Burchett (R-TN-2) said: "The American taxpayer always gets the short end of the stick, while Congress profits at their expense. I hope Congress has the guts to stand up and pass legislation to ban member stock trading."

The Restore Trust in Congress Act:

Covered assets:

• Prohibits all Members of Congress, their spouses, dependent children, and their trustees from owning, buying or selling individual stocks, securities, commodities, or futures.
• The following exceptions are permitted:
  • Widely held investment funds such as mutual funds and ETFs, provided that they are diversified and not concentrated in any industry, business, or single country other than the United States or single state, except for Member’s state of residence
  • U.S. Treasury, state, or municipal bond, note, bill
  • Precious metals (gold, silver, etc.)
  • Shares of Settlement Common Stock, as defined in the Alaska Native Claims Settlement Act
  • An interest in a small business concern
  • Family trusts if no covered individual is a grantor of the trust, has contributed any asset to the trust, has any authority over a trustee of the family trust, or the grantor of the family trust is or was a family member of a covered individual
  • An asset that is received as compensation from the occupation of a spouse or dependent
  • An asset that is not owned by a spouse or dependent but is traded on behalf of others through their primary occupation
  • Personal residences in LLCs

• Upon enactment, covered individuals are prohibited from purchasing covered assets and must divest from all covered assets at fair market value within 180 days for current members and 90 days for incoming members. Individuals who acquire covered assets through inheritance during the course of their service will be required to divest those assets within 90 days of receipt.
• Members may apply to the supervising ethics committee for an extension of a divestment deadline if investment can't be sold by a deadline due to low liquidity, vesting schedules, or contractual restrictions.
• Capital gains taxes may be deferred for all divestments through a Certificate of Divesture process, as is currently permitted for executive branch employees.
  • For example, if a member divests all previously held individual stocks and reinvests in a mutual fund, the taxes on the sale of the individual stocks may be deferred until the member later sells out of the mutual fund.