The House passed the Stop Insider Trading Act on July 22, 2026 by a 232-198 vote, with 13 Democrats joining all Republicans. The bill prohibits members, spouses, and dependent children from buying publicly traded stocks. Lawmakers keep existing holdings. Sales require 7-14 days advance public notice. The bill has not received a Senate vote.
The Vote That Passed With a Built-In Escape Hatch
Chairman Bryan Steil introduced the Stop Insider Trading Act on January 12, 2026, as the first congressional stock trading ban to reach a House floor vote.
The House passed the bill 232-198 on July 22, 2026, with 13 Democrats joining all Republicans in favor.
The legislation prohibits members, spouses, and dependent children from purchasing publicly traded stocks going forward.
Existing holdings are exempt. Lawmakers may keep stocks they already own without divestiture.
Sales remain legal but require public notice at least 7 days and no more than 14 days in advance of each intended transaction.
Where the Disclosure Paper Trail Actually Lives
House and Senate maintain separate online systems for public access to financial disclosure records. — Photo by Ivan Dražić on Pexels
The Clerk of the House maintains the Public Disclosure portal for member financial disclosures and Periodic Transaction Reports at disclosures-clerk.house.gov.
The Senate operates a separate electronic filing system at efdsearch.senate.gov, which requires users to agree to disclosure-use restrictions before viewing reports.
Under current STOCK Act rules, lawmakers must file transaction reports within 45 days of a trade, not 7-14 days in advance.
The new bill would shift sales from after-the-fact reporting to pre-disclosure, but purchases would face a flat prohibition instead.
Trades Still Filing Under the Old Rules
CongressFlow records show Representative April Delaney sold STE on July 31, 2026, in a range of $1,001-$15,000, filed August 4 with a 4-day delay.
The same representative purchased FWONK on July 31, 2026, in a range of $15,001-$50,000, filed August 4 with a 4-day delay.
A third transaction shows a FLT sale on July 31, 2026, in a range of $1,001-$15,000, filed August 4 with the same 4-day delay.
All three trades were filed 4 days after execution, well within the current 45-day statutory window.
These transactions would be prohibited under the new bill if they were purchases, but the STE and FLT sales would still be legal with advance notice.
Who Keeps Buying, Who Keeps Selling
Lawmakers with existing individual stock portfolios face no divestiture mandate under the Stop Insider Trading Act.
The bill's pre-sale notice window of 7-14 days means markets would see a lawmaker's intent to sell before execution.
Critics from the Democratic caucus have called the measure incomplete because it does not ban selling and does not cover the executive branch.
The bill also includes a voter ID requirement, which complicates its path through the Senate and draws opposition unrelated to stock trading.
The penalty structure sets $2,000 or 10% of the covered investment, whichever is greater, plus the net gain, as the cost of violation.
What the Senate Does Next — and What It Means for 2026
The Stop Insider Trading Act has not received a Senate floor vote or committee markup as of the research cutoff.
Senate passage would require either bipartisan support or reconciliation, given the voter ID attachment.
If the bill dies in the Senate, current STOCK Act disclosure rules remain the only federal constraint on congressional trading.
The STOCK Act of 2012 required 45-day transaction reporting but imposed no purchase ban and no pre-sale disclosure.
Watch for Senate committee scheduling, cloture motions, or a stripped-down version that drops the voter ID provision.
FAQ
What is the Stop Insider Trading Act?
A bill introduced by House Administration Chairman Bryan Steil on January 12, 2026, that prohibits members of Congress, their spouses, and dependent children from buying publicly traded stocks. It requires 7-14 days advance public notice for any stock sale and imposes a penalty of $2,000, or 10% of the investment, whichever is greater, plus net gain. It does not require divestiture of existing holdings.
Can members of Congress still buy stocks after this bill?
Not if the bill becomes law. The Stop Insider Trading Act prohibits members, spouses, and dependent children from purchasing publicly traded stocks going forward. However, lawmakers may keep and sell stocks they already own, provided they give 7-14 days advance public notice before each sale. The bill passed the House but has not cleared the Senate.
How does the Stop Insider Trading Act compare to the STOCK Act?
The STOCK Act of 2012 required lawmakers to file transaction reports within 45 days of a trade. It imposed no purchase ban and no pre-sale disclosure. The Stop Insider Trading Act goes further by banning purchases outright and requiring 7-14 days advance notice for sales. But the new bill still allows lawmakers to hold existing stocks without divesting, a gap critics have flagged.
Does the congressional stock ban apply to spouses and children?
Yes. The Stop Insider Trading Act explicitly covers members of Congress, their spouses, and dependent children. All three groups would be prohibited from purchasing publicly traded stocks. Existing holdings across all three groups are exempt from divestiture. Sales by any covered person would require the 7-14 day advance public notice window under the bill's provisions.
What is the penalty for violating the congressional stock trading ban?
The bill sets a penalty of $2,000 or 10% of the covered investment, whichever is greater, plus the net gain from the transaction. This applies to any violation of the purchase prohibition or the advance-notice requirement for sales. The penalty structure is designed to strip profits and add a minimum floor, but enforcement mechanics would depend on House and Senate ethics committee processes.
What is the current status of the Stop Insider Trading Act?
The House passed the bill 232-198 on July 22, 2026, with 13 Democrats joining all Republicans. The bill has not received a Senate floor vote or committee markup. Its prospects are uncertain because it includes a voter ID requirement that draws opposition unrelated to stock trading. If the Senate does not act, the current STOCK Act disclosure framework remains the only federal constraint.