Lawmakers should be banned from trading individual stocks because they have access to non-public, market-moving information, creating unfair advantages and severe conflicts of interest. When politicians trade stocks in industries they regulate, it undermines public trust and suggests they prioritize personal wealth over the public good.
• 2020 Congressional insider trading scandal: Multiple senators sold off millions in stock right after receiving private briefings on the upcoming severity of COVID-19, well before the market crashed.
• Defense & Energy sectors: Lawmakers frequently buy shares in military contractors right before voting to approve massive federal defense spending bills that directly boost those companies' profits.