Senate Panel Advances Stock Trading Ban with Carve-Out for Trump and Vance

Key Insights:

• Senate panel votes 8-7 to move forward on stock trading ban legislation
• Democrats secure passage by agreeing to exempt Trump and Vance
• Bill expands ban to presidents, vice presidents, and members of Congress

A key Senate committee has passed legislation restricting stock trading for federal officials, but the current version exempts President Trump. The Homeland Security and Governmental Affairs Committee voted 8-7 after Democrats accepted an amendment excluding Trump and Vice President Vance. This decision allowed the bill to advance despite broad Republican opposition.

The bill now prohibits future presidents, vice presidents, and lawmakers from trading individual stocks while in office. Its sponsor, Sen. Josh Hawley, proposed the change after pushback on his original PELOSI Act, which specifically targeted Rep. Nancy Pelosi. Democratic support hinged on renaming the bill and limiting its scope to future administrations.

Committee Republicans criticized the process and substance, arguing the bill penalizes wealth and risks discouraging public service. Sen. Bernie Moreno called it a rushed effort lacking proper review and transparency. Other GOP senators said the legislation overreaches existing insider trading laws already enforced by ethics committees.

Democrats Accept Exemption Clause to Secure Passage

Democrats agreed to exempt Trump and Vance to ensure progress on long-stalled ethics reforms. Sen. Elissa Slotkin said she supported moving forward despite concerns with the exemption. Sen. Rand Paul attempted to rally Democrats to block the bill unless Trump was also included in the trading ban.

Despite internal criticism, the committee proceeded with the revised bill under the Honest Act title, replacing the more contentious original name. Democratic leaders argued that initiating reform, even if imperfect, was better than continued inaction. Several Republicans insisted the carve-out undermines the bill’s legitimacy and enforcement fairness.

The legislation comes amid rising public pressure to restrict lawmakers from using nonpublic information for financial gain. The House Ethics Committee recently flagged Rep. Mike Kelly’s stock dealings for creating the appearance of impropriety. Investigators cited no direct wrongdoing but criticized the failure to meet congressional disclosure standards.

Pelosi Voices Support While Republicans Raise Transparency Concerns

Rep. Nancy Pelosi welcomed the legislation despite earlier criticism of the bill’s naming and focus. She emphasized the need for transparency and pledged to support the bill on the House floor. Meanwhile, GOP lawmakers warned the measure could unintentionally politicize financial enforcement.

Critics of the bill pointed to the lack of clarity around enforcement mechanisms and the role of Senate ethics officials. Some Republican senators feared the new rules would deter qualified individuals from holding office. The debate highlighted ongoing tension between financial oversight and political accountability.

Bitcoin dropped 0.83% in 24 hours, now trading at $116,459.21, amid market volatility and regulatory developments.