Congress bans itself from stock trading—with teeth and public scorecards
H.R. 3388 — Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act · Filed by Mark Alford (R-MO) · 1 cosponsor · Introduced May 14, 2025 · Referred to committee
Your members of Congress
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What it does
This bill bans Members of Congress and their spouses from owning, buying, or selling individual stocks, bonds, commodities, and derivatives during their time in office. Members have 180 days to sell off covered holdings. The bill requires annual public certification of compliance, allows ethics committees to impose civil fines (10% of the value of non-divested assets per 30-day period), and mandates a GAO audit within 2 years.
Why we flagged it
The bill's core function is to eliminate a specific conflict of interest (lawmakers trading on privileged information) through a blanket prohibition on individual securities holdings. It is substantively a governance and ethics measure, not a market-manipulation or regulatory carve-out.
What the text implies
- The 180-day divestment window may create a temporary spike in sell orders from affected members, potentially moving markets in covered securities.
- Spouses of members are also restricted, which may affect household financial planning and could create unintended consequences for family wealth management.
The full analysis lists 4 implications of this text.
Who it affects
Ordinary citizens benefit from reduced conflict of interest and insider-trading risk among elected officials. The bill directly addresses a documented public concern—that lawmakers can trade on non-public information obtained through their office—and creates enforceable accountability mechanisms with public disclosure and penalties.