In remarks to reporters, Bessent emphasized that lawmakers engaging in individual stock trades while crafting economic policy erode public trust in federal institutions. His push aligns with recent bipartisan legislative efforts aimed at tightening ethics rules for elected officials, including the Combatting Financial Conflicts of Interest in Government Act, a bill designed to prohibit lawmakers from trading individual stocks while in office.
“People shouldn’t come to Washington to get rich they should come to serve the American people,” Bessent said, citing examples of “eye-popping investment returns” seen in some congressional trading accounts. He argued that if private citizens engaged in similar trading behavior, the Securities and Exchange Commission (SEC) would likely investigate them for potential market abuses.
Why Bessent Is Pushing for a Ban on Congressional Stock Trading
Treasury officials have highlighted that while the Stop Trading on Congressional Knowledge (STOCK) Act of 2012 now technically prohibits insider trading by lawmakers, critics argue that it fails to fully prevent conflicts of interest arising from stock trades. Under the current law, members of Congress must disclose financial transactions within 45 days, but enforcement has often been criticized as weak, with missed deadlines and minimal penalties.
Bessent’s proposal effectively seeks to close perceived loopholes in the STOCK Act by banning members of Congress from buying or selling individual stocks altogether, regardless of whether they have access to nonpublic information. He suggests that lawmakers could still invest in broader vehicles such as exchange-traded funds (ETFs) or mutual funds that do not pose the same ethical dilemmas as single-stock trading.
Supporters of this policy argue that eliminating congressional stock trading would reduce the perception of insider advantage and underscore a commitment to conflict-free public service. In recent years, high-profile investment returns attributed to lawmakers or their family members have fueled public outrage and intensified calls for reform.
Political Debate and Legislative Momentum
The debate over banning congressional stock trading has gained traction on Capitol Hill, with bipartisan support for reform efforts increasing in 2025. A version of the proposed ban sometimes referred to as the Pelosi Act in legislative discussions has advanced out of a Senate committee and would prohibit members of Congress, their spouses, and dependent children from trading stocks while in office.
However, the legislation’s path to a full vote remains uncertain. House and Senate leaders have previously stalled on stock trading limits due to disagreements over the scope of restrictions and concerns about unintended consequences. Some lawmakers favor stricter disclosure and reporting mechanisms rather than an outright ban.
Critics of Bessent’s proposal, including some political commentators, contend that focusing on stock trading could distract from broader governance issues. Nevertheless, the Treasury Secretary’s intervention has reinvigorated public discussion about financial ethics reform in Congress and the importance of maintaining a government that is not only ethical but perceived to be so.
Public Trust and Ethics in Government
A key part of Bessent’s argument centers on restoring public trust in government institutions, a metric that recent polls show remains near historic lows. By advocating for a ban on congressional stock trading, Bessent joins a growing coalition of lawmakers, ethics watchdog groups, and civic organizations calling for enhanced transparency and accountability in federal policymaking.
Public opinion surveys indicate that a majority of Americans support stricter restrictions on financial activities by elected officials, with many voters citing conflict-of-interest concerns and the need for clean government reforms. Proponents argue that banning stock trading would help depoliticize economic decision-making and remove financial incentives that could influence legislative priorities.
What Comes Next?
The Treasury’s call to ban congressional stock trading sets the stage for legislative action early in the next session of Congress. Advocates expect renewed debate and potential amendments to existing ethics laws that govern financial disclosures and investment activities by public officials.
As discussions continue, both lawmakers and the public will be watching closely to see whether this push leads to concrete policy changes. With concerns about transparency in government investing at the forefront of national discourse, Bessent’s stance may prove a pivotal moment in shaping the future of ethics reform and public accountability in Washington.