'Good for Democracy': Ex-Lawmakers Urge Senate Vote on Banning Stock Trades

A bipartisan group of more than 40 former federal lawmakers on Monday urged the U.S. Senate to vote on proposed legislation that would ban sitting members of Congress from buying or selling stocks and other financial holdings.

"We, the undersigned bipartisan former public officials, many of whom served in Congress, write to urge Senate leadership to bring the amended Ending Trading and Holdings In Congressional Stocks (ETHICS) Act to a floor vote before it is set to sunset at the end of the 118th Congress," the letter's signers wrote in a letter to Senate Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.).

Signatories include former Sens. Tom Daschle (D-S.D.) and Chuck Hagel (R-Neb.) along with Reps. Barbara Comstock (R-Va.), Donna Edwards (D-Md.), Dick Gephardt (D-Mo.), and Leon Panetta (D-Calif.).

"Notably," the ex-lawmakers said, "we propose attaching this crucial legislation to any 'must-pass' package. This legislation merits inclusion in such a package because it addresses pressing issues, especially low levels of trust in Congress and the appearance of insider trading."

The letter continues:

As you are both aware, the discussion of how elected officials trade stocks has been intensifying both inside and outside the Congress for years. In 2022, members of Congress made more than 12,700 individual trades, with dozens of members making above-average gains. A 2022 New York Timesinvestigation reported that a fifth of all lawmakers were trading in companies directly related to their work on a congressional committee.

Critics have long decried existing legislation—including the Ethics in Government Act of 1978 and the Stop Trading Congressional Knowledge (STOCK) Act of 2012, which require annual financial disclosures by members of Congress—as largely toothless window dressing. Advocates of measures like the ETHICS Act have pushed for more stringent safeguards against self-dealing by members of Congress.

The ETHICS Act—which was introduced in July by Sens. Jeff Merkley (D-Ore.), Jon Ossoff (D-Ga.), Gary Peters (D-Mich.), and Josh Hawley (R-Mo.)—would ban members of Congress, the president, and vice president from buying and selling securities, commodities, futures, options, trusts, and other holdings. It would also prohibit their spouses and dependent children from divesting covered assets starting in 2027. The bill contains robust enforcement mechanisms and noncompliance penalties.

Calls for a vote on the ETHICS Act mounted after last week's revelation that more than 50 U.S. lawmakers held stocks in companies related to the military-industrial complex—even as those same firms received hundreds of billions of dollars in annual business via congressional legislation.