• U.S. Congress (via Public Law 112-105, the STOCK Act) • U.S. House Committee on Ethics (House Ethics Manual) • U.S. Senate Select Committee on Ethics (Senate Code of Official Conduct)

• Public Law 112-105 (the STOCK Act)—strike or rewrite the sections that permit Members of Congress to purchase, sell, or hold individual securities subject only to disclosure. • 18 U.S.C. § 208—amend to cover Members of Congress and ban any ownership or trading of individual stocks, allowing only broad-based mutual funds or blind trusts. • House Ethics Manual, Rule 25, Clause 5—delete the “personal investment” exception for House Members. • Senate Code of Official Conduct, Rule XXV, Section 4(d)—repeal the personal-investment carve-out for Senators.

Prohibition on Members’ Personal Securities Transactions

Allowing legislators to trade individual stocks—even under disclosure requirements—creates unavoidable conflicts of interest and erodes public trust. By banning personal securities transactions and requiring diversification through funds or blind trusts, Members will legislate solely on constituent interests rather than portfolio performance.

U.S. House Committee on Ethics 314 Cannon House Office Building Washington, DC 20515 U.S. Senate Select Committee on Ethics 301 Russell Senate Office Building Washington, DC 20510

mailbox_office@ethics.senate.gov

The STOCK Act of 2012 (Pub. L. 112-105) closed insider-trading loopholes but stopped short of forbidding personal stock trades by Members. Both the House and Senate ethics rules then carved out “personal investment” exceptions (House Ethics Manual Rule 25, Clause 5; Senate Code Rule XXV, Section 4(d)), permitting individual securities transactions with only reporting obligations.

• Public Law 112-105: Removing language that allows Member trades eliminates the statutory basis for congressional stock ownership. • 18 U.S.C. § 208: Including Members under the conflict-of-interest statute bans personal trading outright, aligning their obligations with executive-branch officials. • House Rule 25, Clause 5 & Senate Rule XXV, Section 4(d): Deleting these exceptions forces divestment into diversified funds or blind trusts within 90 days of enactment, removing financial conflicts at the chamber level.

— Public Law 112-105 amended to state: “Members of Congress shall not purchase, sell, or hold individual equity securities; allowed investments are limited to broad-based mutual funds, index funds, or assets held in a qualified blind trust.” — 18 U.S.C. § 208 amended to add: “For purposes of this section, ‘employee’ includes Members of Congress, and prohibited interests include any individual stock or debt instrument.” — House Ethics Manual updated: Rule 25, Clause 5 deleted; mandates divestment or trust placement. — Senate Code of Official Conduct updated: Rule XXV, Section 4(d) repealed; mandates divestment or trust placement.

Michael Guest, James Lankford

Chair, U.S. House Committee on Ethics, Chair, U.S. Senate Select Committee on Ethics