Trump Supports Ban on Congressional Stock Trading Amid Concerns

• Trump’s tariff decisions triggered market fluctuations, raising insider trading concerns.
• Representative Marjorie Taylor Greene bought stocks just before the tariff pause.
• Mallory McMorrow urges lawmakers to enact legislation that would prohibit stock trading.

President Donald Trump has recently signaled his support for banning stock trading by members of Congress, aligning with growing public concerns over insider trading and conflicts of interest. The move could help revive stalled bipartisan efforts, such as Senator Josh Hawley’s (R-MO) bill, aimed at reshaping trust and accountability in Washington.

Trump’s Tariff Decisions and Market Reactions

The market saw massive swings followed by Trump’s decision to slap tariffs on several countries. However, sentiment shifted sharply after he announced a 90-day tariff pause. Following the pause, the S&P 500 soared by 9.5 percent while the Nasdaq erupted by 12.2 percent. Both recorded the biggest one-day gain in over 15 years.

Amid the market rally, Rep. Marjorie Taylor Greene of Georgia came under scrutiny for purchasing stock from companies like Apple, FedEx, Amazon, and Nike just before Trump’s tariff pause announcement.

Further, between the 8th and 9th of April, Greene bought stocks worth between $21,000 and $315,000, just before the market surged. The timing of the purchase garnered attention, and criticism arose, accusing Greene of benefiting from insider trading about Trump’s tariff plans. 

Growing Public Scrutiny and Legislative Action

In response, Democratic Senator Adam Schiff (D-California) voiced concern, questioning whether any administration officials had prior knowledge of Trump’s tariff policy reversal. Meanwhile, Peter Schiff stated in his X post that Trump was creating giant market fluctuations with his on-again, off-again tariffs. He further added that these constant gyrations in policy provide dangerous opportunities for insider trading.

In the wake of these concerns, the U.S. Senate introduced Bill S.3494, known as the “Ban Congressional Stock Trading Act,” on January 12, 2022. The bill mandates that all members of Congress, their spouses, and dependents divest or place any specified investments into a blind trust for the entire period of their service in Congress and 180 days afterward. If not heeded, a fine will be assessed for an amount equivalent to the monthly salary of the member and will be imposed every thirty-day interval after the infraction notice was issued.

Related: Paul Atkins Takes Charge of SEC After Senate Confirmation

Mallory McMorrow’s Call for Accountability

Voicing her concern about the situation on X, Mallory McMorrow, a Michigan State Senator candidate, criticized Trump’s indifference toward the economic impact of his tariff policies on the citizens. She further highlighted Greene’s stock trades, noting the profits made after the tariff pause, and raised questions about the broader pattern of insider trading. She further argued that the elected officials should be focused on being public servants and not lining their pockets. Calling for further transparency and accountability of Congress, McMarrow stated that there should be legislation to restrict trading stocks by members of Congress.

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