AOC Renews Call for 'Insider Trading' Reforms as Tariff Chaos Roils Markets
“I’ve been hearing some interesting chatter on the floor...[d]isclosure deadline is May 15. We’re about to learn a few things. It’s time to ban insider trading in Congress." - Rep. Ocasio-Cortez
[Brendan Smialowski/AFP via Getty Images)]
In recent weeks, the stock market has experienced significant volatility following President Trump’s April 2 announcement of reciprocal tariffs and a subsequent 90-day pause on most tariffs—except those targeting China. Amid this turbulence, some investors may see an opportunity to profit on market swings through well-timed trades and strategic investments.
Following the stock market surge on April 9—driven by President Trump’s social media posts reinforcing the 90-day tariff pause—U.S. Representative Alexandria Ocasio-Cortez (D-NY) urged members of Congress to disclose any stock transactions made around that date. On X, she wrote: “I’ve been hearing some interesting chatter on the floor. Disclosure deadline is May 15th. We’re about to learn a few things. It’s time to ban insider trading in Congress.”
These developments present a timely opportunity to revisit the rules governing the use of non-public information within the legislative branch.
Representative Ocasio-Cortez has consistently spoken out on the issue of Congressional stock trading—a pervasive, bipartisan problem — for years. As we reported in February, she called out insider trading in Congress and emphasized the need for “Democrats to walk the walk.”
A financial analytics group, Unusual Whales, has tracked trading activity from both parties and noted that members of Congress have repeatedly outperformed major market benchmarks, including the S&P 500, raising conflict of interest concerns. Specifically, their study found that portfolios held by Democratic members grew by 31%, while those held by Republican members increased by 26%.
The current law governing congressional stock trading is the Stop Trading on Congressional Knowledge Act (STOCK) of 2012. The STOCK Act prohibits members of Congress, and their employees, from using non-public information gained from their official duties to benefit themselves in stock trades. It also requires the timely reporting (within 30 to 45 days) of their stock transactions.
Despite its intent to increase transparency, the STOCK Act has largely failed to achieve its desired impact. Since its passage in 2012, it has not resulted in any significant enforcement actions against members of Congress. Given this weak enforcement record—and the recent example of President Trump’s "public tip" just hours before his tariff policy reversal—it is highly unlikely that any action will be taken against lawmakers who may have benefited from timely investments related to the tariff news.
This perceived failure of the STOCK Act prompted an unlikely bipartisan coalition in 2023, led by Representatives Alexandria Ocasio-Cortez (D-N.Y.) and Matt Gaetz (R-Fla.), to introduce the Bipartisan Restoring Faith in Government Act, which would prohibit members of Congress, their spouses, and dependents from owning or trading individual stocks. Although the bill stalled, it was reintroduced in January in the 119th Congress by Ocasio-Cortez along with Representatives Brian Fitzpatrick (R-Pa.), Cory Mills (R-Fla.), and Raja Krishnamoorthi (D-Ill.). According to the bill’s sponsors, 86% of Americans support banning stock trading by members of Congress and their families, including 87% of Republicans, 88% of Democrats, and 81% of Independents.
As of today—and to the surprise of no one—the bill has not moved out of the committees it was referred to.
