- Seven members of Congress were disqualified for violating the STOCK Act and lost their seats in the 2022 midterm elections.
- Three members of Congress were defeated in the primary races.
- Insider and other outlets have identified 75 individuals who’ve violated the conflict-of interest law since 2021.
After the 2022 midterm elections are over, seven members of Congress were elected who had violated federal conflict-of interest laws.
Congress passed the Stop Trading on Congressional Knowledge Act in 2012 to reduce insider trading as well as conflicts of interest. One key provision of the law requires Congressmen to disclose publicly stock trades they make, whether it is by themselves, their dependent children, or their spouse, within 45 days.
Insider’s “since 2021”Conflicted Congress” project — and other news organizations — have uncovered 75 members of Congresswho have violated the disclosure provisions of STOCK Act.
Seven of the 75 members who broke the STOCK Act lost their elections in 2022. Three of them lost in the primary phase. However, it is not clear how stock-trading played a role in their losses.
- Rep. Madison Cawthorn (Republican of North Carolina)
- Rep. Mo Brooks is a Republican from Alabama who moved to the Senate to run for open seats
- Rep. Kurt Schrader (Democrat of Oregon)
The general election saw the defeat of four other members:
- Rep. Tom Malinowski is a Democrat from New Jersey
- Rep. Sean Patrick Maloney (Democrat of New York)
- Rep. Steve Chabot is a Republican from Ohio
- Rep. Cindy Axne is a Democrat from Iowa
Members of Congress — Republicans and Democrats alike — began to call out for higher restrictions on congressional stock trading after House Speaker Nancy Pelosi said in a December 2021 press conference that lawmakers should be able to trade stocks, as “we are a free-market economy.”
She was forced to resign after backlash. Finally, we agreed.The idea of preventing members of Congress trading stocks was floated to me. I replied “if members want it, I’m OK with that.”
While both Republicans and Democrats have since created legislation to prevent members of Congress stock trading, neither the House nor Senate has yet voted on a bill regarding congressional stock trading.
The ban on trading by legislators Received a new allyOn November 15, 2022, former President Donald Trump declared in his announcement of candidacy for the presidency that he supports a ban.
He said, “We want to prohibit members of Congress becoming rich by trading stocks using insider information.”
However, some Senate Democrats were not amused by Trump’s endorsement for a ban. According to Insider.
Dick Durbin, Senate Majority Whip, said that he was impressed by Trump’s ethical standards.
Others, including Democratic Senator Jeff Merkley welcomed Trump’s endorsement.
Merkley sent an email saying that Trump supports a ban of stock trading in Congress. “And I encourage all my Republican colleagues to support this effort.”
Warren Rojas contributed reporting
