“Restore Trust in Congress Act” aims to curb insider trading in Congress
News | By Easton Martin | September 4, 2025
A new bipartisan proposal called the Restore Trust in Congress Act has been introduced in the House with the goal of curbing conflicts of interest and rebuilding public confidence in government. The bill is led by Representatives Seth Magaziner and Chip Roy, joined by a wide group of both Democrats and Republicans.
The legislation would prohibit members of Congress, their spouses, dependent children, and trustees from owning or trading individual stocks, securities, commodities, and similar assets. Exceptions are made for diversified mutual funds and ETFs, U.S. Treasury or municipal bonds, precious metals, small business interests, and certain trusts. Members would be required to divest prohibited assets within 180 days, while new lawmakers would have 90 days to comply.
To ease transitions, the bill allows members to defer capital gains taxes if they reinvest proceeds from divested assets into approved investment vehicles. Enforcement would be carried out by ethics committees, with public documentation of compliance. Civil penalties of up to $50,000 could be imposed for willful violations, and referrals to the Department of Justice would be possible in severe cases.
Supporters argue the act closes loopholes that weakened earlier reforms, such as the 2012 STOCK Act. With broad public backing and rare bipartisan momentum, the measure could mark a turning point in restoring accountability and trust in Congress.
