Rep. Gallagher Votes to Ban Congressional Stock Trading

WASHINGTON, D.C. — Congressman James Gallagher (CA-01) today voted to pass H.R. 7008, the Stop Insider Trading Act, legislation that prohibits Members of Congress, their spouses, and dependent children from purchasing individual stocks while serving in office. The bill also strengthens transparency requirements for stock sales and imposes meaningful penalties for violations.

Gallagher has consistently supported stronger ethics reforms in Congress. Earlier this Congress, he joined House Administration Committee Chairman Bryan Steil as a cosponsor of the Stop Lawmakers from Predicting Act, legislation that would prohibit Members of Congress from profiting through prediction markets tied to elections, government actions, or public policy decisions.

"Congress should not be a get-rich-quick scheme for politicians," said Congressman Gallagher. "Members have access to information and influence that ordinary Americans do not. They should never be able to turn that advantage into a personal payday. I voted to shut the door on congressional stock trading and restore some basic accountability in Washington."

The Stop Insider Trading Act prohibits Members of Congress and their immediate families from purchasing securities issued by publicly traded companies while allowing diversified mutual funds, qualifying blind trusts, and certain other exempt investments.

The legislation also requires Members to publicly disclose an intended stock sale at least seven days in advance and no more than 14 days before the transaction. If a sale does not occur, the notice must be withdrawn before it expires. Lawmakers who violate the law would face a fine equal to $2,000 or 10 percent of the transaction's value, whichever is greater, and would forfeit any profits earned from the transaction.

Together, the Stop Insider Trading Act and the Stop Lawmakers from Predicting Act would close multiple avenues for Members of Congress to personally profit from information gained through public office, helping restore confidence that elected officials are serving the American people instead of themselves.

The Stop Insider Trading Act now heads to the Senate for consideration.