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Bipartisan Bill Aims to Ban Congress' Stock Trading

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  Published in Stocks and Investing on Wednesday, February 18th 2026 at 10:16 GMT by Detroit News
      Locale: UNITED STATES

WASHINGTON - February 18th, 2026 - A renewed and increasingly forceful bipartisan effort in the U.S. Senate aims to fundamentally alter the financial landscape for members of Congress, seeking to eliminate the practice of individual stock trading by lawmakers and their families. The "Restricting Transactions of Politicians Act," or RTOPS Act, formally introduced today, seeks to address what proponents call a pervasive and unacceptable conflict of interest.

The bill, spearheaded by Senators Jeff Merkley (D-Oregon) and Jim Risch (R-Idaho), and garnering co-sponsorship from a diverse group including Senators Elizabeth Warren (D-Massachusetts), Josh Hawley (R-Missouri), Tina Smith (D-Minnesota), and John Kennedy (R-Louisiana), signifies a growing consensus that the current system is fundamentally flawed and erodes public trust.

"For too long, Congress has operated under a system riddled with the potential for abuse," stated Senator Merkley during a press conference this afternoon. "The RTOPS Act isn't about punishing anyone; it's about preventing the appearance of impropriety and, more importantly, ensuring our elected officials are unequivocally focused on the needs of their constituents, not the fluctuations of the stock market." Senator Risch echoed this sentiment, emphasizing the bill's aim to "restore a basic level of accountability and faith in our government." He noted the growing public cynicism surrounding the financial dealings of those in power, stating that this legislation is a "common-sense step" to alleviate those concerns.

The impetus for this legislation stems from a series of reports over the past several years detailing instances of lawmakers seemingly benefiting from their positions through well-timed stock trades. These investigations have highlighted trades in companies directly impacted by legislation the lawmakers were involved in crafting or voting on, sparking outrage and accusations of insider trading, even when technically within the bounds of existing - and arguably inadequate - disclosure laws. Currently, members are required to publicly report their stock holdings, but critics contend this simply isn't enough.

The RTOPS Act goes significantly further. It proposes a complete prohibition on members of Congress, their spouses, and dependent children from owning or trading individual stocks. The legislation does, however, allow for investments in broadly diversified financial instruments such as mutual funds, exchange-traded funds (ETFs), and various types of bonds (Treasury, agency, municipal, and corporate) - providing options for investment without the potential for direct conflicts of interest related to specific company performance. This carve-out is designed to allow lawmakers to participate in the market without creating opportunities to profit from non-public information or legislative action.

The bill also includes a substantial penalty for violations: a $100,000 fine for any lawmaker found to be in breach of the ban. Importantly, the legislation mandates that current holdings be divested within 90 days of the law's enactment, providing a reasonable timeframe for compliance. Recognizing the potential for 'revolving door' issues, the RTOPS Act also institutes a one-year ban on lobbying for former lawmakers, preventing them from immediately capitalizing on their congressional service for personal financial gain.

This isn't the first attempt to address this issue. Similar bills have been introduced in previous congressional sessions, but have consistently stalled, often facing resistance from within both parties. However, the current climate feels different. Public pressure is mounting, fueled by increased media coverage and activist groups demanding greater transparency and accountability from elected officials. The momentum behind the RTOPS Act appears stronger than previous iterations, aided by the bipartisan nature of the effort and the willingness of prominent senators to champion the cause.

House Speaker Mike Johnson has publicly stated he is "open to discussing" the bill, a signal that the legislation could gain traction in the lower chamber. While he stopped short of a full endorsement, his willingness to entertain the idea is a significant development. The path forward remains uncertain, but the combination of bipartisan support, growing public pressure, and potential openness from House leadership suggests that a ban on congressional stock trading may finally be within reach. The debate now centers on whether this bill can overcome remaining political hurdles and become law, potentially ushering in a new era of financial integrity in Congress.