By In a bold move to address long-standing concerns over congressional ethics, Senator Josh Hawley (R-Mo.) reintroduced the “PELOSI Act” on Monday, April 28, 2025, aiming to prohibit members of Congress and their spouses from trading individual stocks while in office.
The legislation, officially titled the Preventing Elected Leaders from Owning Securities and Investments Act, seeks to eliminate potential conflicts of interest and restore public trust in the nation’s lawmakers. The announcement, shared by Watcher.Guru on X at 14:07 UTC, quickly gained traction, sparking a wave of reactions across social media and renewed debates about insider trading in Congress.
A Legislative Push with Bipartisan Appeal
Hawley’s bill comes amid growing bipartisan support for curbing stock trading by lawmakers. The senator first introduced the “PELOSI Act” in 2023, but it failed to advance under President Joe Biden’s administration.
This time, however, the proposal has garnered significant attention, with President Donald Trump publicly stating he would “absolutely” sign such a ban if it reaches his desk. Senator Jeff Merkley (D-Ore.), who has been advocating for a congressional stock trading ban since 2012, also expressed support, tweeting, “I’ve been fighting to ban Congressional stock trading since 2012—let’s get this done!!”
The “PELOSI Act” would require members of Congress found in violation of the ban to forfeit any profits to the U.S. Treasury. Additionally, the House and Senate ethics committees could impose fines up to 10% of each wrongful transaction. To ensure compliance, the bill mandates an audit by the Government Accountability Office (GAO) two years after its implementation.
Hawley emphasized the need for reform in a statement to Fox News: “Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents. Americans have seen politician after politician turn a profit using information not available to the general public. It’s time we ban all members of Congress from trading and holding stocks and restore Americans’ trust in our nation’s legislative body.”
Why the “PELOSI Act”?
The bill’s name is a pointed reference to former House Speaker Nancy Pelosi, whose husband, Paul Pelosi, has made headlines for his significant stock trades during her tenure. According to a 2023 Business Insider report, the Pelosis’ cumulative wealth was estimated at least $46.1 million, with Paul Pelosi regularly buying and selling stocks and stock options.
Critics have long argued that lawmakers like Pelosi, who have access to confidential information and the power to influence markets through legislation, hold an unfair advantage over the public.
Social media reactions to Hawley’s announcement highlighted this sentiment. A post by @libsoftiktok on X noted, “Pelosi: Annual salary: $174k-$223k. Estimated Net worth: $240 million. How??” The question reflects a broader public frustration with the financial gains of lawmakers, often attributed to their access to non-public information.
The 2012 Stop Trading on Congressional Knowledge (STOCK) Act was intended to address such concerns by prohibiting insider trading by Congress members, but enforcement has been inconsistent, and loopholes remain.
Public and Political Reactions
The reintroduction of the “PELOSI Act” sparked a mix of serious commentary and lighthearted memes on X. @PudgyPenguins humorously replied to Watcher.Guru’s post with an image of Nancy Pelosi on the phone, accompanied by a cartoon penguin and the caption, “They’re onto us, pivot to crypto and find out everything you can about that blue penguin.”
Meanwhile, @ShaggySingh expressed skepticism about the fairness of the system, writing, “Funny how the rules that apply to the general mass don’t apply to congress, yet those are the same people that keep installing in your heads, ‘no one is above the law.’”
Others saw the bill as a step toward accountability. @CryptoOwl commented, “Finally, some common sense in the swamp. Let’s see if this one actually goes somewhere.” The sentiment echoes a growing public demand for transparency, especially after high-profile incidents like the 2020 congressional insider trading scandal, where several senators were investigated for selling stocks before a market crash triggered by the COVID-19 pandemic. Although no charges were filed, the scandal underscored the need for stricter regulations.
A Long-Standing Debate
The issue of congressional stock trading has been a contentious one for years. The STOCK Act of 2012, signed into law by President Barack Obama, aimed to prevent lawmakers from using non-public information for personal gain. However, as Daniel Gross noted in a 2007 Slate article, the informational advantages lawmakers hold are “indistinguishable from those enjoyed in more familiar forms of insider trading.”
A 2025 Britannica article further highlighted that members of Congress have access to valuable information—such as the outcomes of votes, committee proceedings, and investigations—that even the most sophisticated investors cannot legally obtain.
Despite the STOCK Act, enforcement has been lax, and public trust in Congress remains low. A 2022 New York Times investigation revealed that 97 members of Congress traded stocks in companies directly related to their committee assignments, raising questions about potential conflicts of interest. Hawley’s “PELOSI Act” aims to close these gaps by imposing a blanket ban on stock trading, a measure that many argue is long overdue.
What’s Next?
While the “PELOSI Act” has gained momentum, its path to becoming law is uncertain. Previous attempts to ban congressional stock trading, including the STOCK Act’s earlier iterations in 2006, 2007, and 2009, faced significant hurdles. The 2023 version of the “PELOSI Act” stalled, and with Congress often divided on issues of self-regulation, the bill may face resistance from lawmakers who benefit from the current system.
However, the bipartisan support and public pressure could tip the scales. President Trump’s endorsement, combined with advocacy from figures like Senator Merkley, suggests a growing consensus that reform is necessary. For now, the “PELOSI Act” has reignited a critical conversation about ethics in government, leaving Americans to watch closely as the debate unfolds.
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