U.S. House of Representatives has passed the "Stop Insider Trading Act" on Wednesday, July 22, 2026

The U.S. House of Representatives has passed the "Stop Insider Trading Act" on Wednesday, July 22, 2026, marking a historic but deeply polarized step toward restricting financial activities on Capitol Hill.

Sponsored by House Administration Committee Chairman Rep. Bryan Steil (R-Wis.), the bill passed with a 232–198 vote, heavily split along party lines after Republican leadership bundled the ethics rules with a controversial federal voter identification mandate.

Key Measures of the Bill

The proposal establishes new guardrails on individual equity markets for serving officials, though critics argue it stops short of an absolute ban:

• Purchase Ban: Prevents lawmakers, their spouses, and dependent children from purchasing new individual stocks of publicly traded companies while in office.

• Grandfather Clause: Permits lawmakers to hold onto and eventually sell individual stocks they already owned prior to entering Congress.

• Mandatory Advance Notice: Requires legislators to publicly disclose their intent to sell existing stocks between 7 and 14 days before executing the transaction.

• Investment Exemptions: Continues to allow investments in broad index funds, mutual funds, and diversified Exchange-Traded Funds (ETFs).

• Escalated Penalties: Hikes the penalty for trading or disclosure violations to $2,000 or 10% of the transaction's value (whichever is greater), alongside the forfeiture of any net gains from the sale.

Bipartisan Clashes and the "Poison Pill"

While curbing congressional stock trading has long enjoyed wide public and bipartisan backing, the bill's momentum fractured over key additions. House Republicans merged the stock legislation with a measure requiring voters to provide strict photo identification, pulling language from the conservative Safeguard American Voter Eligibility (SAVE) Act strongly backed by President Donald Trump.

Only 13 Democrats joined the Republican majority. Most Democrats rejected the combined package, with House Administration Ranking Member Joe Morelle calling the voter ID rider a "poison pill" designed to force opposition. Progressive and minority caucuses, including the Congressional Black Caucus, also criticized the bill for leaving out executive branch officials and failing to mandate full divestment of current stock portfolios.

Conversely, key conservative co-sponsors like Rep. Chip Roy (R-Texas) supported the bill as a "giant step forward," despite his preference for a clean, stand-alone vote.

• Senate Outlook: The bill now heads to the Senate, where its prospects are highly uncertain. With a narrow majority structure in the upper chamber, any legislative movement requires 60 votes to overcome a filibuster. Senate leaders on both sides of the aisle have historically shown tepid interest in modifying trading policies, and the inclusion of the federal voter ID mandate faces a steep wall of Democratic resistance.