Senate Blocks 'Stop Insider Trading Act' 53-47 as Democrats Demand a Full Ban

The U.S. Senate on September 30 blocked legislation placing new restrictions on stock trading by members of Congress, as Democrats refused to provide enough votes to advance the measure, arguing it falls short of a full ban [1]. By a vote of 53-47, the Senate halted a Republican drive to open debate on the partisan bill, which the House of Representatives passed in July [1][2]. Sixty affirmative votes were needed to clear the Senate's procedural hurdle [1].

The "Stop Insider Trading Act" would prohibit members of Congress, their spouses, and dependent children from buying stocks of publicly traded companies. But Democrats objected to its exceptions: lawmakers could keep stocks they already hold, use dividends to buy more shares, and allow spouses or children to trade on their behalf [1][2].

The legislation also contained a Republican provision to tighten requirements on photo IDs needed to vote in American elections — language Democrats labeled a "poison pill" that they said would make it more difficult for eligible citizens to vote in federal elections [1][2].

The election-season fight

Senate Majority Leader John Thune said in a press conference on September 29 that the bill's provisions "strike at the very heart of issues that the American people care deeply about" [1]. Senate Democratic Leader Chuck Schumer led the opposition. "Another desperate Republican attempt to pretend they're fighting corruption when what they really want is to score political points because they know they're drowning in their campaigns," Schumer told reporters [1].

Many Democrats are on record favoring a total ban on stock trading by members of Congress, with some wanting to extend it to the president, other members of the executive branch, and the U.S. Supreme Court [1]. The fight comes in the closing weeks of campaigns leading up to the November 3 midterm elections, which will determine whether Republicans or Democrats control each chamber next year; Republicans currently hold slim majorities in both [1].

The scale of the issue

For years, voters have expressed outrage over the thousands of stock trades by lawmakers that many argue are improper given lawmakers' privileged position: members of Congress shape legislation, often behind closed doors, while executing trades on stocks and bonds whose prices could be affected by actions in the House and Senate [1][2]. A December study by Common Cause found that last year members of Congress from both parties executed 13,324 trades totaling $635.6 million [1].

The bill's failure gives Republicans a potential line of attack against Democrats in the final weeks of the campaigns, even as its defeat leaves the underlying issue unresolved [2].

Terms

• Cloture: a Senate procedure that ends debate on a measure; it generally requires 60 votes to advance legislation.
• Poison pill: a provision added to legislation that its opponents say is designed to make the bill unacceptable to them.

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