Biden calls for ban on congressional stock trading

In a notable move, President Joe Biden has expressed his support for banning congressional stock trading, a topic that has long sparked controversy on Capitol Hill. The comment comes during an interview with Faiz Shakir, a political adviser for Senator Bernie Sanders, which will be released this week.

“Nobody in the Congress should be able to make money in the stock market while they’re in the Congress,” Biden declared, marking a clear and firm position on an issue that has stirred public anger for years.

The interview, conducted for A More Perfect Union, a pro-labor advocacy and journalism platform, focuses on Biden’s economic achievements and values. While discussing unions, clean energy investments, and infrastructure projects, Shakir shifted the conversation to the contentious topic of congressional stock trading—a practice that has been criticized as a loophole for insider advantage.

Historically, congressional stock trading has been linked to incidents that outraged the public. During the early stages of the COVID-19 pandemic, some lawmakers were reported to have bought and sold millions of dollars in stocks after receiving classified briefings about the virus. For many, such actions raised ethical concerns about whether lawmakers prioritize their own financial interests over public trust.

While Biden’s endorsement is significant, the practical effects remain uncertain. His statement comes at a politically sensitive time, with no immediate changes guaranteed. A bipartisan proposal to ban trading by members of Congress and their families has gained considerable support, with dozens of sponsors, yet it has failed to advance to a vote.

Current regulations require lawmakers to disclose any stock transactions over $1,000. However, the system is riddled with flaws. Lawmakers often miss deadlines for reporting or fail to file disclosures altogether, undermining transparency and accountability.

During the conversation, Shakir commended Biden for his ethical financial record throughout his career. “I admired that you hadn’t ‘gone in early on Google, Boeing, Microsoft, Nvidia, and Amazon,’” Shakir said, referring to Biden’s 36 years as a U.S. senator from Delaware.

In response, Biden emphasized that he lived solely on his senator’s salary, avoiding the temptation of stock market investments. “I don’t know how you look your constituents in the eye and know, because the job they gave you, gave you an inside track to make more money,” he said. “I think we should be changing the law.”

Biden’s comments mark a departure from his previous neutrality on the matter. Two years ago, then-White House Press Secretary Jen Psaki stated that Biden would leave decisions about stock trading restrictions to Congress. Now, however, the president has openly backed reform, aligning with growing public frustration about financial conflicts of interest in Washington.

The issue of congressional stock trading has become a symbol of populist distrust toward lawmakers. Critics argue that allowing legislators to trade stocks while in office creates unfair advantages and undermines faith in government. Proponents of a ban suggest that such reforms are necessary to restore public trust and ensure lawmakers remain focused on serving their constituents.

While Biden’s endorsement adds momentum to the debate, whether Congress will act on this matter remains uncertain. The upcoming months could determine if lawmakers prioritize ethical reforms or allow the status quo to persist.