MADISON, Wis. — Wisconsin Republican Rep. Bryan Steil introduced legislation that would ban members of Congress from purchasing individual stocks while serving in office.
The Stop Insider Trading Act aims to prevent lawmakers from profiting off insider information they may gain through their positions. Under the proposed legislation, members would be prohibited from buying individual corporate stocks, but could still invest in diversified funds, such as index funds or ETFs.
"If you want to day trade, go to Wall Street. If you want to help lead the nation, come here to Capitol Hill," Steil said in an interview with TMJ4's Chief Political Reporter Charles Benson.
The bill would also require a seven-day public advance notice for any member wanting to sell individual stocks they owned before taking office. This provision is designed to prevent lawmakers from making quick trades based on non-public information.
Watch: Congressman Steil proposes ban on stock purchases by members of Congress
Congress introduced the House's Restore Trust in Congress Act last September, which also would have banned members of Congress and their immediate families from trading stocks.
"The biggest difference between this legislation and past legislation is we have built the broad support needed to actually pass and have it signed into law, said the Wisconsin congressman.
Steil says that includes backing from House Majority Leader Steve Scalise, who has indicated the bill will move to the House floor after committee consideration. Steil said he already has the majority support on the House Administration Committee.
The proposal builds on the 2012 Stock Act, which Steil described as "a step in the right direction, but inadequate to the challenges that we face."
The legislation would allow members to continue investing in broadly diversified funds that represent entire market indexes, such as the S&P 500. It also includes exemptions for commodity trading, particularly for members who own family farms and need to buy or sell agricultural products like soybeans.
Steil acknowledged there has been pushback from some members who don't support the approach, but said there's recognition among lawmakers that improvements are needed to rebuild public trust.
"This is about making sure that the American public is confident and knows that their member of Congress is not benefiting from insider information," said Steil
Since taking office, Steil said he has not purchased any individual stocks.
"I've not engaged in the purchase of any individual stocks. I divested all the stocks that fall under my committee's jurisdiction."
This story was reported by Charles Benson and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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