Representative Anna Paulina Luna (R-FL) has introduced a resolution advancing the End Congressional Stock Trading Act, which bans members of Congress and their families from owning, buying, or selling stocks and bonds.
In addition to the complete ban on engaging in the stock market within six months of enactment (or two years in more complex cases), the End Congressional Stock Trading Act fines violators up to $100,000 or 10% of the asset’s value.
Other provisions include publicly available certifications and annual IRS audits, as well as tax neutrality, which ensures the bill provides divestment protections to prevent Members from incurring undue capital gains penalties when transitioning to compliant investments.
However, one exception to owning stocks is allowed: Members of Congress still have access to diversified mutual funds, government retirement plans, U.S. Treasury securities, and small business holdings without conflict-of-interest risks.
“No one sent to Congress should be enriching themselves through Wall Street while writing the very laws that regulate our markets,” said Rep. Luna in her press release, adding, “This bill is about accountability, transparency, and restoring faith in the institution of Congress. Members of Congress should serve the American people—not their stock portfolios. Passing this bill is a crucial step toward cleaning up Washington and restoring trust in our democracy.”
Rep. Luna previously described herself as “taking a lot of heat, not just from my own party, but we are going to see it from the other side” about the bill at the beginning of August, adding, “So you either put it on the ground and let us vote for it, or you can continue to lie to the American people on your position, on thinking that you should defend insider trading when everyone knows it is bipartisan and it is bicameral. It needs to stop.”
The Florida Congresswoman further claimed that she had received ” calls from other members of Congress saying that what we were doing was going to hurt people. I was also told that I would be putting the Republic in jeopardy because I was going to cost us the midterms if I brought this to the floor, and what I will tell you is that what I am trying to do is actually save the Republic.”
