The House Ethics Committee has approved a bipartisan bill that would prohibit members of Congress from trading individual stocks, marking a significant step forward despite sharp opposition from Democrats. The measure now heads to the full House for a vote, where its passage remains uncertain due to a narrow Republican majority.
- STOCK Act 2.0 passed House Ethics Committee 12–7
- Prohibits members of Congress from trading individual stocks
- Mandates blind trust accounts within 30 days of taking office
- Requires disclosure of financial transactions within 30 days
- Potential fines up to $100,000 for violations
- Full House vote expected in early February, with GOP majority of 220–215
The legislation, formally known as the Stop Trading on Congressional Knowledge Act of 2025 (STOCK Act 2.0), passed the House Ethics Committee by a vote of 12 to 7, with all Democrats and three Republicans supporting the measure. The bill mandates that all members of Congress, their spouses, and dependent children must divest from individual stocks and place assets into blind trust accounts within 30 days of taking office. Additionally, it requires full disclosure of financial transactions within 30 days of completion, a timeline intended to increase transparency. The push for the ban gained traction following revelations in late 2024 about congressional members purchasing shares in companies before major public announcements—such as a pharmaceutical firm’s FDA approval or a tech company’s product launch—resulting in gains exceeding $1 million for at least 23 lawmakers over a 24-month period. These incidents prompted widespread public outcry and renewed scrutiny of ethical standards in Congress. If enacted, the bill would apply to all 535 members of Congress and would be enforced through the Office of Congressional Ethics, which would have the authority to impose fines of up to $100,000 for violations. Proponents argue that the legislation would restore public trust and align congressional conduct with standards expected of federal employees in other branches. Opponents, including several Republican lawmakers, warn the ban could unfairly restrict personal financial decisions and create administrative burdens. The full House is expected to vote on the bill in early February. With Republicans holding a 220–215 majority, passage hinges on the support of at least five GOP members. The outcome could influence the political momentum leading into the 2026 midterm elections, particularly in states where ethics reform is a top issue.