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Congress Stock Trading Ban Faces GOP Roadblocks

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  Published in Stocks and Investing on Wednesday, February 18th 2026 at 9:32 GMT by The Hill
      Locales: District of Columbia, UNITED STATES

Washington D.C. - February 18th, 2026 - Efforts to restrict or ban stock trading by members of Congress and their families are facing significant headwinds, as House Republicans struggle to forge a consensus on a path forward. What began as a rare area of bipartisan agreement just months ago has bogged down amidst internal GOP divisions, jeopardizing the prospect of meaningful ethics reform. The current impasse casts a shadow over Republican promises of accountability and transparency, especially given a recent history of scandals involving lawmakers' personal financial dealings.

The initial push for legislation addressing potential conflicts of interest stemmed from growing public outrage over reported instances of congressional members seemingly profiting from non-public information. Scandals involving former Speaker Nancy Pelosi, Senator Richard Burr, and Senator Tom Cotton - all involving questionable stock trades made around the time of sensitive briefings or legislative actions - fueled demands for stricter rules. The calls for reform resonated across the political spectrum, creating an opening for bipartisan cooperation.

Representatives Marjorie Taylor Greene (R-Ga.) and Jamie Raskin (D-Md.) were early and unexpected allies in championing the need for change, demonstrating the broad appeal of the issue. However, as concrete legislative proposals emerged, the cracks within the Republican party began to widen. The core disagreement centers on the scope of any potential ban.

Several Republicans advocate for a complete prohibition on stock ownership and trading by members of Congress and their immediate families - including spouses and dependent children. Proponents of this approach argue it's the only way to truly eliminate the appearance of impropriety and prevent potential conflicts of interest. They contend that even with stricter reporting requirements, the temptation to exploit privileged information will remain too strong.

However, a significant faction of House Republicans, led by figures like Representative Guy Reschenthaler (R-Pa.), favors a more moderate approach. Reschenthaler's proposal would allow members to continue holding stocks, but with enhanced reporting requirements. Specifically, it would mandate the disclosure of trades within 45 days and prohibit trading in companies directly related to committee work. The logic behind this plan is to provide transparency without completely restricting financial freedom.

The House Ethics Committee is also actively working on its own set of recommendations, which reportedly include a ban on specific securities categories (such as those directly impacted by legislative decisions) and more rigorous enforcement of existing reporting rules. This adds another layer of complexity to the negotiations, as lawmakers attempt to reconcile the various proposals.

Speaker Kevin McCarthy (R-Calif.), while publicly stating his support for a ban, has remained noncommittal regarding a specific timeline for bringing a bill to a vote. This hesitation is widely seen as a reflection of the deep divisions within his caucus and a desire to avoid a potentially embarrassing defeat on the House floor. He's walking a tightrope, attempting to appease both the reformers and those resistant to stricter regulations.

Democrats, while generally supportive of a ban, are expressing concerns that the Republican proposals are insufficient. They fear that loopholes and exceptions will render any legislation largely ineffective and fail to address the core ethical concerns. Some Democratic lawmakers argue for broader definitions of "immediate family" to encompass more distant relatives and for stricter penalties for violations.

The stalled negotiations are particularly damaging to the Republican narrative of accountability and transparency. Having campaigned heavily on promises to "drain the swamp" and restore public trust, the party now faces accusations of hypocrisy if it fails to deliver on this key issue. The delay also provides ammunition for Democratic attacks, allowing them to paint Republicans as prioritizing self-preservation over ethical conduct.

The situation remains fluid, with ongoing discussions and potential compromises being explored. However, unless House Republicans can overcome their internal divisions and reach a unified position, the prospects for enacting meaningful stock trading restrictions for members of Congress appear increasingly dim. The public, already deeply skeptical of Washington, may see this as another example of political gridlock and a failure to hold those in power accountable. The longer the debate drags on, the more eroded public trust becomes, furthering the cynicism surrounding congressional ethics.