Treasury Secretary Scott Bessent is calling for an end to individual stock trading by members of Congress, citing “eye-popping” profits that would make Wall Street hedge funds envious. His remarks have intensified demands for legislative action to restore public trust in elected officials. Recent proposals, including a Senate bill by Sen. Josh Hawley, aim to crack down on lawmakers profiting from privileged information.
Bessent issued the warning during an interview on Bloomberg Surveillance, stating that members of Congress are making gains that no average investor could legally replicate. “If any ordinary American traded like this, the SEC would be at their door,” he said. Bessent promised to work with Congress to ban lawmakers from trading individual securities while in office.
Some of the most significant gains reportedly came from high-profile lawmakers like Rep. Nancy Pelosi and Sen. Ron Wyden. According to Bessent, the returns achieved by congressional members were so significant that “every hedge fund would be jealous.” One senator executed more than 1,300 trades in just two years, raising serious questions about access to non-public information.
Sen. Josh Hawley’s proposed legislation, which cleared a Senate committee in July by a narrow 8-7 margin, would ban stock trading by members of Congress and their spouses. It also includes new restrictions for the president and vice president, who would face delayed divestment rules. House Speaker Mike Johnson has also signaled openness to a ban, though some members of Congress have pushed back, citing stagnant salaries since 2009 as a reason they should be allowed to manage their own investments.
Despite the ethical concerns, public interest in congressional trading remains high. Financial firms have developed ETFs that mimic trades made by lawmakers, based on the observation that congressional trades frequently outperform the market. These trends underscore growing concerns about corruption, conflicts of interest, and the need for accountability in public service.
Lawmakers’ access to legislative schedules, regulatory updates, and industry briefings offers them an advantage not available to ordinary investors. Bessent’s comments reflect increasing frustration with this systemic imbalance and growing bipartisan support to limit it.
