Legislation encouraged to ban stock trading by members of Congress in wake of bank failures

The failure of banks in the United States is a reality in 2023.

U.S. Rep. Abigail Spanberger of Virginia is pushing her “TRUST in Congress Act,” which would ban members of Congress, their spouses and their dependent children from buying and selling individual stocks while serving in Congress.

Spanberger points to “additional reporting on suspiciously timed trades among members of Congress has further eroded the public’s trust in their elected officials.” In a letter to the leader of the U.S. House Committee on House Administration, she highlighted recent reports shedding light on suspiciously timed trades related to the collapse of Silicon Valley Bank and several additional financial institutions. She made the case for swift congressional action to prevent lawmakers and their families from trading individual stocks and to restore a degree of the American public’s trust in their elected officials.

“Additional reporting on suspiciously timed trades among Members of Congress has further eroded the public’s trust in their elected officials — including related to the Silicon Valley Bank collapse,” Spanberger said. “Accordingly, I am writing to once again urge the Committee on House Administration to hold a hearing on proposals to ban Members of Congress, their spouses and their dependent children from trading stocks.”

Earlier in 2023, Spanberger and U.S. Rep. Chip Roy of Texas reintroduced Transparent Representation Upholding Service and Trust (TRUST) in Congress Act, which is supported by 55 Democratic and Republican cosponsors.

“Unfortunately, reporting in recent weeks has shed light on even more questionable trades by our colleagues. Just last week, multiple reports showed that several Members of Congress sold bank stocks just days before the Silicon Valley Bank failure — including after receiving briefings on this situation. Coincidental or not — it does not matter. Our constituents are sick and tired of reading these headlines — they deserve action,” Spanberger said.

Spanberger testified last month before the U.S. House Committee on House Administration to make the case for the legislation, and testified as part of the Committee’s Member Day, which focused on proposed legislation within its jurisdiction.