Speaker Johnson Backs Congressional Stock Trading Ban: Ruined By 'A Few Bad Actors' - Unusual Whales Subv

A ban on buying and selling stocks and options by members of Congress continues to heat up with a new bill proposed and several notable figures, including President Donald Trump, supporting the effort.

Speaker of the House Mike Johnson (R-La.) is also in favor of a ban according to recent comments.

What Happened: Sen. Josh Hawley (R-Mo.) has introduced the Preventing Elected Leaders from Owning Securities and Investments Act, or PELOSI Act based on the first letter of each of the main words. The name takes aim at Congresswoman and former Speaker of the House Nancy Pelosi (D-Calif.).

Pelosi, whose husband is a frequent stock trader and venture capitalist, likely doesn't support the bill that would limit her husband’s transactions while she's in office.

One person showing support for the bill is Johnson, who, according to Benzinga's Government Trades page, has not bought and sold any stocks.

"I'm in favor of that," Johnson told reporters recently. "I don't think we should have any appearance of impropriety."

Johnson acknowledged that the counterargument to the ban is that Congress members’ salaries haven't kept up with inflation, and if this trend continues, there could be fewer qualified people running for Congress.

The Speaker said that stock trading activity by members of Congress has been ruined by "a few bad actors."

"I think it's been abused in the past."

Johnson said there is zero tolerance for "anything resembling insider trading."

President Trump also recently said he would support such a ban, and that he would sign the bill if it was passed by Congress

“Well, I watched Nancy Pelosi get rich through insider information, and I would be okay with it. If they send it to me, I would do it,” Trump told TIME.

Why It's Important: Hawley said the bill will help "restore Americans' trust in our nation's legislative body."

“Members of Congress should be fighting for the people they were elected to serve — not day trading at the expense of their constituents,” Hawley said. “Americans have seen politician after politician turn a profit using information not available to the general public.”

With ongoing debates about potential conflicts of interest in congressional trading, Representative Ro Khanna (D-Calif.) previously told Benzinga he would continue advocating for a congressional vote to ban the practice.

"We should have a vote on it," Khanna told Benzinga.

Khanna said that despite his continued speeches in the House advocating for a ban on stock trading, there is a “collective shrug” in Congress regarding the issue.

Members of Congress are currently allowed to buy and sell stocks and options as long as they properly disclose the transactions within 45 days.

Multiple transactions have been flagged by Benzinga and other outlets that point to potential conflicts of interest over the timing of the trades.

While Pelosi makes headlines for her trades, it’s important to remember that both Republican and Democratic members of Congress are profiting from buying and selling stocks and options while in office. Some trades have questionable timing or are connected to committees they serve on.

An analysis of recent trading activity highlights the members of Congress with the highest number of transactions and largest dollar volumes—those most active in stock trading.

Thomas Kean Jr., Representative (R-N.J.)
Josh Gottheimer, Representative (D-N.J.)
Julie Johnson, Representative (D-Texas)
Markwayne Mullin, Senator (R-Okla.)
Tommy Tuberville, Senator (R-Ala.)
Marjorie Taylor Greene, Representative (R-Ga.)
Nancy Pelosi, Representative (D-Calif.)

There are also the best traders by return in 2024 as tracked by UnusualWhales.

Here’s a look at the top 10 for 2024:

David Rouzer (R-N.C.), Representative, +149.0%
Debbie Schultz (D-Fla.), Representative, +142.3%
Ron Wyden (D-Ore.), Senator, +123.8%
Roger Williams (R-Texas), Representative, +111.2%
Morgan McGarvey (D-Ky.), Representative, +105.8%
Larry Bucshon (R-Ind.), Representative, +98.6%
Pete Sessions (R-Texas), Representative, +77.5%
Susan Collins (R-Maine), Senator, +77.5%
David Kustoff (R-Tenn.), Representative, +71.5%
Nancy Pelosi (D-Calif.), Representative, +70.9%

Several of these figures have appeared on past lists. Rouzer was ranked fourth in the 2023 report and seventh in the 2021 report. Schultz ranked second in the 2022 report. Wyden ranked sixth in the 2023 report. Sessions ranked 10^th in the 2023 report. Pelosi was ranked ninth in the 2023 report and ranked sixth in the 2021 report.

A ban on congressional stock trading would fulfill a long-standing call from retail investors and tracking sites alike. It could also mean the end of ETFs that track Congressional trading activity, such as the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC) and the Unusual Whales Subversive Republican Trading ETF (BATS:GOP).

Hawley’s bill does not mention cryptocurrency like Bitcoin (CRYPTO: BTC), with several members of Congress buying Bitcoin and Bitcoin ETFs over the last year as the U.S. looks to establish a Bitcoin Strategic Reserve.

The PELOSI Act is unlikely to pass Congress this year. On the prediction market Polymarket, there is only a 14% chance that Congress stock trading will be banned in 2025. On Kalshi, the odds are currently listed at 11%.

Did You Know?