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When Donald Trump\u2019s<\/span> top trade official was in the middle of testifying to Congress on Wednesday, the markets seemed to be in a free fall. Jamieson Greer, the U.S. trade representative, was speaking to Congress only hours after Trump went on his social media platform and encouraged<\/a> investors to buy stocks at low prices.<\/p>\n As Greer was testifying, something unexpected happened: The president announced a 90-day pause on sweeping global tariffs. After days of turmoil, the stock market began to soar. Congressional Democrats piled on to ask whether any Trump friends had received a secret tipoff about the tariff flip-flop.<\/p>\n \u201cWho\u2019s benefiting? What billionaire just got richer?\u201d Rep. Steven Horsford, D-Nev., asked Greer. As trade representative, a Cabinet-level position for setting trade policy, Greer defended Trump\u2019s actions<\/a>.<\/p>\n Greer, however, wasn\u2019t the only one facing questions about who had benefited from the market volatility. Some members of Congress wondered aloud if any of their own colleagues on the Hill had made money on the crashing and rising stocks.<\/p>\n \u201cAny member of Congress who purchased stocks in the last 48 hours should probably disclose that now,\u201d Rep. Alexandria Ocasio-Cortez, D-N.Y., said<\/a> on X. \u201cI\u2019ve been hearing some interesting chatter on the floor.\u201d<\/p>\n \u201cBanning members from owning and trading individual stocks would be a clear signal that this kind of conduct is not acceptable.\u201d<\/p>\n<\/blockquote>\n<\/figure>\n The speculation was part of renewed attention to several proposals to ban stock trading by members of Congress themselves. Such measures have struggled to advance on Capitol Hill despite overwhelming public support \u2014 with some advocates saying the time for Congress to act after years of dithering is now.<\/p>\n \u201cBoth President Trump\u2019s conduct, and the concern that his political cronies in Congress and outside it are profiting from the president\u2019s haphazard tariff policy are just another example of how the public is forced to question whether the president and members of Congress are putting their personal financial interest ahead of the public\u2019s interest,\u201d said Donald Sherman, the executive director and chief counsel of the left-leaning Citizens for Responsibility and Ethics in Washington. \u201cBanning members from owning and trading individual stocks would be a clear signal that this kind of conduct is not acceptable.\u201d<\/p>\n <\/p>\n <\/p>\n For years, a bipartisan group of lawmakers has pushed for legislation to ban members of Congress from trading stocks \u2014 legislation that has languished <\/a>under Democratic and Republican presidents alike.<\/p>\n The co-sponsor of one pending bill, Rep. Seth Magaziner, D-R.I., told The Intercept that Trump\u2019s actions generated a burst of discussion on Capitol Hill.<\/p>\n \u201cThe events of the last 48 hours were a stark reminder to members of Congress, and to the public, that the opportunity for insider trading in Washington is significant, is egregious and needs to stop,\u201d Magaziner said. \u201cWe need, in the short-term, immediate transparency over who traded in the last 48 hours, and then we need to pass a bill to ban members of Congress from trading stocks once and for all.\u201d<\/p>\n Ocasio-Cortez, who has co-sponsored another bill banning stock trades<\/a>, noted on X that there is already a law on the books requiring members of Congress to disclose trades. Under the STOCK Act, signed into law by Barack Obama in 2012, they have 30 days to report transactions<\/a>.<\/p>\n In addition to boosting transparency, the statute was meant to prohibit lawmakers from profiting on insider trading. Critics, however, say it has proven toothless. Even the straightforward disclosure requirements are routinely violated with few consequences<\/a>.<\/p>\n One economic study of congressional trades using data provided under the STOCK Act found no evidence that members of Congress outperformed<\/a> random stock picking.<\/p>\n Supporters of tighter restrictions say that even a handful of insider trades would be enough to further shake the public\u2019s rock-bottom confidence in Congress. Dozens of lawmakers have disclosed trades that intersect with their committees\u2019 jurisdiction, the New York Times found <\/a>in a 2022 analysis.<\/a><\/p>\n The prospect of insider trading has become a frequent target for populists on the left and right. In a 2022 podcast,<\/a> Joe Rogan sounded off on the topic and on Rep. Nancy Pelosi, D-Calif., whose husband\u2019s prolific trading <\/a>has drawn suspicion. Nationally, 86 percent of voters support a ban on trading individual stocks, according to a 2023 University of Maryland poll.<\/a><\/p>\n Magaziner\u2019s bill, co-sponsored with ultra-conservative Rep. Chip Roy, R-Texas, would force members, their spouses, and their minor children to either sell off stock holdings or move them into blind trusts<\/a>, as some members already do. Members would still be allowed to trade broad-based mutual and exchange-traded funds.<\/p>\n Democratic leaders have been roadblocks in the past, Magaziner was careful to note, although he described current leadership as more supportive.<\/p>\n \u201cWhile it is true that the tariff announcement has renewed a lot of people\u2019s interest on the Democratic side,\u201d he said, \u201cI would just caution that the only way we get this reform passed is if it\u2019s bipartisan, because we don\u2019t have unanimity on the Democratic side.\u201d<\/p>\n <\/p>\n\n
Rumors on the Floor<\/strong><\/h2>\n
\n Photo: Jemal Countess\/Getty Images for MoveOn<\/span>
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