May 3, 01:01 PM

PELOSI and TRUST Acts Introduced as Speaker Johnson Opens Door to Congressional Stock Trading Ban

Lawmakers in the United States are considering new measures to ban stock trading by members of Congress and their spouses. Speaker Mike Johnson has said he is open to conversations about banning congressional stock trading, and Representative Mike Levin has urged a vote on relevant legislation, stating, 'If you’re not in Congress to serve the people, and you’re just there to enrich yourself, you need a new line of work.' Senator Jon Ossoff has called the practice 'absurd,' while Senator Josh Hawley has reintroduced the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act. The PELOSI Act would prohibit lawmakers and their family members from holding, purchasing, or selling individual stocks during their tenure, require compliance within 180 days, and mandate forfeiture of profits to the U.S. Treasury for violations. Representative Rob Bresnahan Jr. has introduced the Transparency in Representation through Uniform Stock Trading Ban (TRUST) Act, which would bar members of Congress and their spouses from buying or selling stocks upon taking office, with exceptions for diversified mutual funds, ETFs, Thrift Savings Plan investments, and U.S. Treasuries. The TRUST Act would allow for holdings in a qualified blind trust and would grandfather in existing holdings. It is set to take effect at the start of the 120th Congress in January 2027. Recent reports note that some lawmakers, such as Rep. Mikie Sherrill, have seen significant increases in their stock portfolios, including hundreds of trades in 2020 while having access to sensitive information.