Source: YouTube
A Senate committee just advanced a bill to ban stock trading by members of Congress, the president, and the vice president. The legislation passed 8–7, with every Democrat and only one Republican, Missouri Sen. Josh Hawley voting in favor. In response, President Trump denounced Hawley as a “second-tier Senator,” and accused him of enabling Democrats to target his presidency under the guise of reform.
Hawley Backs Congressional Stock Trading Ban Bill But Adds Trump Loophole
The bill’s path to passage hinged on Hawley’s decision to revise it. The updated version would still prohibit public officials from trading individual stocks but includes a carveout that delays divestment requirements until the start of the next term. This provision would exempt Trump from having to sell his holdings if he wins re-election. Even with this change, Trump reacted with anger once the bill moved forward.
Senator Rand Paul warned that the carveout revealed the bill’s flaws. He questioned why lawmakers would protect Trump from a provision they claimed was vital. Despite Paul’s objections, Hawley defended the bill as a necessary response to public distrust of elected officials’ financial dealings.
Bipartisan But Not Unanimous Support
Democrats praised the measure as a first step toward restoring faith in public service. Senator Elissa Slotkin called the bill imperfect but important. Her colleague Gary Peters said the tweaks were minor and didn’t affect the bill’s core purpose. Hawley said he was proud to back it and emphasized that elected officials should not be profiting from privileged access.
Polling supports that position. More than 80% of voters favor banning congressional stock trading, according to recent surveys. A 2022 New York Times report found that roughly 1 in 5 lawmakers bought stocks that intersected with their committee work. The STOCK Act already bans insider trading, but enforcement has been weak.
Trump Flips From Support to Rejection
President Trump initially said he liked the bill “conceptually.” Hours later, he blasted Hawley on Truth Social. He claimed the legislation was a Democratic trap and questioned why Hawley would align himself with a policy supported by former House Speaker Nancy Pelosi.
Trump’s statement also accused Democrats of long trying to “target” him and said Hawley was playing into their hands. The tone echoed previous attacks Trump has made on GOP figures who defy his policy positions or legislative strategies.
Banning Congress from Stock Trading: Ethics vs. Optics in Public Service
Hawley’s bill, renamed the “Honest Act,” would ban stock trading and impose disclosure and divestment rules. But the exception for sitting presidents introduces complications. Critics say the bill may become law while dodging its full intent. Proponents argue it’s still a meaningful shift toward ethical boundaries.
Senator Rick Scott unsuccessfully tried to expand the exemption to include the vice president and families. Other Republicans called the proposal unnecessary, citing existing disclosure laws and claiming it could discourage wealthy professionals from entering public office. The vote reveals broader divisions within the Republican Party. Some lawmakers are caught between supporting Trump and responding to populist demands for tighter ethical rules. Others argue that public pressure, not presidential preference, should shape the outcome.
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