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Warren calls House insider trading bill full of loopholes
The House passed the Stop Insider Trading Act 232-198, but Warren and critics say it would still let members keep existing stock holdings and reinvest dividends.
The House passed legislation aimed at tightening stock trading rules for members of Congress, their spouses, and dependent children, but Senator Elizabeth Warren said the bill contains major loopholes that would leave the core conflict largely intact, according to Yahoo Finance.
The Stop Insider Trading Act, which cleared the House on Wednesday by a 232-198 vote with 13 Democrats supporting, would bar individual stock trading, while allowing lawmakers to keep existing stock portfolios and reinvest dividends. Warren said lawmakers could continue owning and selling stocks under the proposal, making it unlikely to gain traction in the Senate.
Critics also fault the bill for including unrelated voting restrictions, including a requirement for voters to present photo ID to cast ballots in federal races. Democratic senators are also unlikely to endorse the measure because lawmakers would not be required to sell off their existing portfolios.
The proposal follows existing limits under the 2012 STOCK Act that already ban members of Congress from using nonpublic information for private profit. Yahoo Finance also notes that about 48% of members of Congress owned individual stocks as of late 2025, based on disclosures and blind trust reports reviewed by The Capitol? (review mentioned as incomplete in the provided text).