A House-passed bill to restrict members of Congress from buying and selling stocks failed on the Senate floor Wednesday in a party-line vote, with Democrats insisting it would not do enough to curb lawmakers’ trading.
Senators voted 53-47 on advancing the Stop Insider Trading Act, short of the 60 votes needed. Every Democratic and independent senator voted to reject the measure, which would prohibit members and their spouses from purchasing individual stocks and institute new reporting requirements.
Among other criticisms, Democrats argued the bill would not require lawmakers to sell stocks they already own.
“The Republican toothless stock trading bill is as ineffective as a screen door on a submarine,” Senate Minority Leader Chuck Schumer said on the floor Wednesday. “This bill has no reform, no accountability, no substance.”
Most Democrats also refused to support the bill because of voter ID requirements that were added into the bill, including some that are part of the GOP’s stalled SAVE America Act. Sen. Alex Padilla (D-Calif.) called those “a poison pill” in his own floor remarks Wednesday.
Other Democrats also wanted to see the bill’s trading restrictions extended to White House personnel, including the president.
Thirteen House Democrats joined Republicans to pass the legislation in July. The White House issued a statement of support for the legislation at the time.
The stock-trading measure was among the final items of Senate business before the chamber adjourns for the midterms. Congressional stock trading has emerged as a campaign talking point in both parties as allegations of insider trading garner significant public scrutiny. Calls for a member trading ban have become a fixture of campaign ads and stump speeches and were even seen at the GOP’s September convention in Dallas.
Republicans were ready to champion the bill’s passage on the campaign trail, but they are now likely to attack Democrats for blocking the measure. GOP Sens. Pete Ricketts of Nebraska and Jon Husted of Ohio, both in tight reelection races, helped roll out the legislation.
“We need to restore the faith of the American people in the House and in the Senate,” Ricketts said on the floor Wednesday.
Leave a Reply