The US House of Representatives has approved the Stop Insider Trading Act, a bill that would prohibit members of Congress, their spouses, and dependent children from purchasing publicly traded stocks.

Lawmakers passed the bill in a 232–198 vote on Wednesday, sending it to the Senate for further consideration. The vote comes amid years of sustained public pressure over congressional stock trading, a practice that drew renewed scrutiny after a 2022 New York Times analysis found dozens of lawmakers had traded stocks in industries overseen by their committees. Congress has not passed a comprehensive trading ban despite multiple proposals introduced across recent sessions.

Representative Bryan Steil, the Wisconsin Republican who sponsored the legislation, said the measure "ensures no lawmaker can profit off of insider information" and "institutes strict penalties for any violation."

Speaking from the House floor, Steil noted that no prior bill on this topic had reached the House floor with such an opportunity. He outlined the penalties: "A fine equal to $2,000 or 10% of the transaction, as well as a disgorgement of profits. Violators would be forfeiting any gain realized if they failed to comply with this legislation."

Under the bill's provisions, members of Congress who already hold stock assets would be required to provide seven days' notice before selling, which Steil described as a deterrent against insider trading. The 2012 STOCK Act already requires lawmakers to disclose securities transactions within 45 days, but critics have long argued that disclosure requirements alone are insufficient to prevent conflicts of interest.

Several Democrats have argued that the legislation does not go far enough in addressing potential conflicts of interest, since it permits lawmakers to retain and sell stocks they already own.

"[The] bill has major loopholes," said Senator Elizabeth Warren on Thursday. "Lawmakers can continue owning and selling stocks — so it won't solve the problem. Not gonna fly in the Senate. Members of Congress should not own, buy, or sell stocks."

The Stop Insider Trading Act was received in the US Senate for consideration on Thursday, following its passage in the House. The Senate has not yet scheduled a vote on the measure, and similar proposals have previously stalled without reaching the Senate floor.

The bill's scope is narrower than the proposed Digital Asset Market Clarity Act, a cryptocurrency market structure bill also under consideration in the Senate. Under the CLARITY Act's proposed text, all US public officials could be barred from issuing or sponsoring digital tokens until 2029. Steil's bill, by contrast, is limited to restricting investment activities for members of Congress and does not extend to the president, vice president, or their families.

Prediction Markets Legislation Also Under Consideration

The House vote on the Stop Insider Trading Act follows Steil's sponsorship of a separate bill targeting lawmakers' use of prediction market platforms such as Kalshi and Polymarket. In June, the Wisconsin lawmaker introduced the Stop Lawmakers from Predicting Act, which would prevent certain public officials, their spouses, and children from "wagering on public policy issues and political outcomes."

Prediction markets have attracted public scrutiny following several high-profile incidents. A US soldier was charged after allegedly earning more than $400,000 betting on the presidency of Venezuela's Nicolás Maduro, who was removed by US forces in January. Separately, Donald Trump's teleprompter operator reportedly made over $100,000 through Kalshi event contracts tied to words and phrases used in the president's speeches.

As with the stock trading bill, the prediction markets legislation proposes that violators pay a $2,000 fee or 10% of the value of the prohibited bets placed on the platforms.