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House Bans New Congressional Stock Purchases but Grandfathers Existing Holdings

Keeping current holdings intact hands the Senate a choice over closing major loopholes or accepting a limited reform

Overview

  • The House approved the Stop Insider Trading Act in a 232-198 vote that bars members, spouses and dependent children from buying individual stocks going forward while allowing existing holdings to remain.
  • Republicans attached a national voter‑ID provision before the vote, a move that cost some Democratic support and now complicates the bill’s path in the Senate.
  • The bill raises penalties for late or missing disclosures to $2,000 or 10% of a transaction’s value plus forfeiture of profits and requires seven to 14 days’ public notice before any sale.
  • New reporting showed Sen. Alan Armstrong disclosed roughly 700 trades months late, underscoring long‑standing enforcement gaps in the STOCK Act that critics say weaken the new law’s deterrence.
  • Public polling shows strong bipartisan backing for a broader ban, and advocates are pressing the Senate to consider divestiture or blind‑trust rules rather than the House’s grandfathering approach.