Speaker Mike Johnson publicly voiced his support on Wednesday for a ban on members trading individual stocks, fueling a push that has picked up support from key players in recent months.
“I’m in favor of that because I don’t think we should have any appearance of impropriety here,” the Louisiana Republican said Wednesday at a press conference, when asked about bipartisan talks in the House on banning congressional stock trading.
Prior to Wednesday, Johnson had refrained from speaking out on the stock trading issue, which has drawn increasing public scorn since 2020, when a series of dubious trades made by members at the outset of the pandemic prompted a federal investigation.
Despite repeated attempts from lawmakers in both chambers, legislation to address the perception that members are trading on inside information has repeatedly withered without sufficient support from leadership.
Johnson’s support is crucial for the cohort that wants to ban members from trading individual stocks. House Minority Leader Hakeem Jeffries, D-N.Y., has also expressed his support for a congressional stock trading ban, as has President Donald Trump.
“We’ve had a surge of momentum on this issue,” said Rep. Seth Magaziner, D-R.I., who with Rep. Chip Roy, R-Texas, introduced one proposal that would require members, their spouses and dependents to put certain assets in blind trusts.
Magaziner is also part of a bipartisan working group of members who have introduced different stock ban versions and have met multiple times in the last month. In addition to Magaziner and Roy, the group includes Reps. Joseph D. Morelle, D-N.Y., Alexandria Ocasio-Cortez, D-N.Y., Pramila Jayapal, D-Wash., Brian Fitzpatrick, R-Pa., and Tim Burchett, R-Tenn.
They are working to develop a consensus version of a bill, Magaziner said, and are ironing out issues like how to penalize members who violate trading rules and how to deal with members-elect who are coming to Congress already owning stocks.
Magaziner said the group is “about 90 percent there on a consensus bill.”
Any legislation to ban members from stock trading still faces hurdles, and its prospects in the Senate are unclear. Meanwhile, some members aren’t pleased at the thought of being banned from the markets.
“Some people say, well look, the salary of Congress has been frozen since 2009. When you adjust for inflation, a member of Congress today is making 31 percent less than they made in that year,” Johnson said. “The counterargument is, and I have some sympathy … is at least let them engage in some stock trading so that they can continue to take care of their family.”
Despite his sympathies, Johnson said “on balance” he still supports a legislative ban on member trading.
“I think it’s been abused in the past, and I think sadly a few bad actors discolor it for everyone,” Johnson said.
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