On Wednesday, House Speaker Mike Johnson (R-La.) voiced his backing for a proposed law that would prohibit stock trading among members of Congress.
“Should I give you my real opinion on that? I’m in favor of it, because we don’t want there to be any sort of fraudulent appearance,” Johnson mentioned while speaking to reporters at a Capitol Hill press conference.
“To be honest, I feel that stock trading should be banned. I mean, it’s been exploited in the past,” he added, noting concerns about how a few individuals have tarnished the reputation for others.
Until now, Johnson hadn’t made any stance on banning stock trading among Congress members, which has been a contentious point of discussion, especially among figures like House Minority Leader Hakeem Jeffries (D-N.Y.) and members of the House Freedom Caucus, including hardline conservatives.
The conversation around restricting Congressional stock trading has heated up recently, especially as some lawmakers have enjoyed significant profits during times of market instability. Reports note that both Marjorie Taylor Greene (R-Ga.) and Nancy Pelosi (D-Calif.) are at the center of this discourse.
Interestingly, it was noted that both Democratic and Republican members of Congress outperformed the S&P 500 last year, according to a report from a stock trading watchdog.
“We’ve observed that Democrats’ portfolios gained an impressive +31%, significantly outpacing the market,” the group’s report stated. “Republicans, while still profitable, slightly lagged behind with a 26% return.”
Under the Stock Act of 2012, Congress members are barred from trading based on insider information, and they are required to disclose their transactions.
“We can’t tolerate insider trading or any form of advantage that some might exploit. It’s a zero-tolerance policy,” Johnson stressed, highlighting ongoing discussions about whether to enforce stricter trading bans.
“Congressional salaries have remained unchanged since 2009,” he pointed out. “When taking inflation into account, today’s Congress members earn about 31% less than they did back then.”
“This trend is declining each year, and if it continues, fewer individuals will be willing to make significant sacrifices to serve in Congress,” he warned.
Johnson acknowledged that lawmakers might sympathize with wanting to engage in stock trading to support their families.
