Senator Ricketts’ Weekly Column: Stop Congressional Insider Trader
When Nebraskans send lawmakers to Washington they expect them to serve our communities. Polling confirms that many Americans believe politicians are abusing their positions for personal financial gain. Over 80% of Americans believe Members of Congress do a bad job keeping their personal financial interests separate from their Congressional work. As a result, only 15% of Americans approve of how Congress handles its job.
Polling doesn’t just tell the story. History does too.
Trackers on social media publish routine updates on a former Speaker’s stock trades. People follow these trades because they are profitable. As crazy as it sounds, mimicking lawmakers’ trades is a legitimate investment strategy. In 2020, the Chairman of the Senate Intelligence Committee sold over $1.5 million in stock just days prior to the pandemic-induced market crash. Stories like these underscore the need to act. Even the perception of self-dealing by lawmakers erodes public trust. It can also negatively impact voter participation in our democracy.
To be clear, no lawmaker should profit off of insider information. My Stop Insider Trading Act is the solution. President Trump has voiced his support for this legislation. Vice President Vance recently told House Republicans we need to pass it. On July 22, the House of Representatives passed it in a bipartisan vote. Now it’s time for the Senate to do the same.
My bill eliminates even the appearance of impropriety. It would prohibit Members of Congress from buying new stock. It would apply the same rules to their spouses and dependent children. If a lawmaker or their family already owns stock, they can maintain that ownership. If Members of Congress or their family wish to sell stock, they must publicly disclose those plans seven days in advance. Doing so allows the public, and the market, to get ahead of any news that could impact a stock’s price.
My bill also carries significant penalties. Any violation would incur a $2,000 fine or a fine that is 10% of the transaction — whichever is greater. Any profit realized by a sale would also be forfeited. Under my bill, if a lawmaker sold $1 million in stock without filing advanced public notice, they would be fined $100,000. They would also forfeit any profits. It’s time Congress made this the standard.
Nebraskans need trust and transparency from Congress. Americans are demanding action. My Stop Insider Trading Act delivers.
There are Democrats who support this. In the House, 13 Democrats voted for the bill. As I mentioned previously, President Trump and Vice President Vance have voiced their support. Americans don’t want insider trading. Congress should capitalize on this momentum. The House has demonstrated their support. Now, the Senate needs to move this bill quickly to the President’s desk. By passing it, we can rebuild Americans’ trust in their elected representatives.
It’s time Congress put real safeguards in place for lawmaker stock trading. I’m committed to getting the job done.
My team and I are here to serve you. Contact us anytime by phone at 202-224-4224. You can also view my website at https://www.ricketts.senate.gov/contact.