Ending Trading and Holdings in Congressional Stocks (ETHICS) Act

# ETHICS Act Summary **What the Bill Would Do** The ETHICS Act would prohibit members of Congress and their immediate families from buying and selling individual stocks while they serve in office. Instead, members would be required to place their investments into blind trusts or diversified investment funds (like index funds) where they cannot see or control which specific stocks they own. The bill also restricts members from trading based on non-public information they learn through their congressional work—an existing rule that this bill would strengthen. **Who It Affects and Key Provisions** This legislation directly affects U.S. senators, representatives, and their spouses and dependent children.

The main provisions include: banning individual stock trading; requiring divestment of existing stocks; allowing only passive investments (index funds, bonds, Treasury securities); and creating penalties for violations. The intent is to prevent conflicts of interest where members might trade stocks based on information they gain from their congressional committees or offices. **Current Status** As of now, the bill remains in committee and has not advanced to a full House vote. Similar stock-trading restriction bills have been proposed in recent years with bipartisan support in concept, though implementation details have been debated. This bill represents one of several ongoing efforts in Congress to address public concerns about whether lawmakers should be able to trade individual stocks while in office.