After hours of debate, committee approves measure to limit members' stock trading, adopts modification on presidential treatment

The Senate Homeland Security and Governmental Affairs Committee on March 12 voted 8–7 to approve a substitute for legislation commonly referred to in the transcript as the "Pelosi Act," a measure that would prohibit elected officials from buying and selling individual stocks while in office and require divestiture timelines for incumbents.

Senator Hawley (Senator) introduced the measure as an effort to stop members of Congress from profiting on information that is not publicly available. "86% of Americans say that members of Congress should not be able to buy and sell shares of stock, individual stock, while they are members of this body," Hawley said during floor debate, according to the transcript.

Why it matters: supporters said the measure would restore public trust and stop trading they described as driven by access to privileged information; opponents argued the bill would impose onerous divestiture requirements, disadvantage candidates with private‑sector backgrounds and raise practical enforcement questions about illiquid assets, blind trusts and certain digital assets.

What the committee did: the committee adopted a modification to the substitute (roll call recorded in the transcript as yeas 8, nays 6) that changed how the bill treats the president and related divestiture timing. The committee then considered and rejected several amendments, including an amendment to require a GAO/Inspector General report focused on a single lawmaker's trading and subsequent second‑degree proposals, and rejected a broader exemption for the president and vice president. After amendment votes, the committee approved the Hawley substitute as modified and then voted to report the measure to the Senate on final passage as modified (final tally reported as yeas 8, nays 7).

Key points from the debate recorded in the transcript: - Scope and timing: supporters said the bill bans trading in individual stocks immediately and provides incumbents until the start of their next term (if reelected) to divest; the bill also imposes a 90‑day trading prohibition that applies at once, which supporters said would address most problematic trading. Senator Slotkin noted that the bill allows a window for compliance and explained the treatment of current officeholders: "If you currently have a blind trust and you are a member of this body, you have until the beginning of your next term and then a hundred and 80 days after that to meet the divestment requirements," the transcript records. - Illiquid assets and small businesses: critics repeatedly raised the problem of illiquid assets and of owners of private or closely held businesses who would face a difficult choice if forced to sell. Senator Scott warned that forcing the sale of an "illiquid asset" could require owners to divest at a bad time. Supporters pointed out that the bill explicitly exempts small businesses up to 1,200 employees from forced divestiture, according to speakers during the debate. - Blind trusts and enforcement: the transcript records a back‑and‑forth about the enforceability of qualified blind trusts and the role of the Senate Ethics Committee. Senator Lankford, as chair of the Ethics Committee, questioned why the bill eliminates the qualified blind trust route; supporters said the committee and staff would work together on enforcement guidance. - Digital assets: the bill as drafted includes certain digital assets (the transcript discusses "stablecoin" and other crypto assets) and the authors said they were drawing a line at pecuniary interests they judged equivalent to privately held securities. - Presidential treatment: speakers repeatedly debated whether the measure should apply to the president; the transcript records extended argument that the modification then adopted changes the bill's application to the president and the timing of any divestiture for a president's term.

Amendment votes and procedural actions recorded in the transcript (selected): - Vote on modification to the substitute (text change affecting presidential treatment): yeas 8, nays 6; modification agreed to. - Scott amendment (second‑degree) proposing a GAO/Inspector General report on a particular lawmaker's trading: vote failed (yeas 7, nays 8); amendment not agreed to. - Scott (alternative) amendment to exempt president, vice president and spouses: failed (yeas 6, nays 9); not agreed to. - Committee adopted the Hawley substitute as modified: yeas 8, nays 7. - Final passage (reporting the measure to the Senate) as modified: yeas 8, nays 7; motion agreed to.

Direct quotes from the transcript: Senator Hawley said, "86% of Americans say that members of Congress should not be able to buy and sell shares of stock, individual stock, while they are members of this body." Senator Slotkin said, "You don't have to sell. You can put your money into it. You can put your stock into a blind trust, which a lot of members of Congress have already done." Senator Scott argued, "If it's illiquid there's no buyer. That's why it's called illiquid. ... We're gonna make people sell things when it might be an absolute worst time to sell something."

Discussion vs decision: the transcript shows extended substantive debate (pros and cons) lasting more than an hour and multiple roll calls on modifications and amendments. The committee issued formal decisions: the substitute as modified was adopted and the committee voted to report the bill out to the Senate.

Next steps: the measure, as reported, will be sent to the Senate floor along with committee report materials. Supporters and opponents indicated they expect additional amendment and debate on the Senate floor and suggested they would try to clarify enforcement and definitions before final enactment.

Meeting context: committee members repeatedly said similar legislation has been considered in previous sessions and that this version incorporates compromises intended to secure passage out of committee. Sponsors invited further technical work with the Senate Ethics Committee and staff for enforceability and implementation guidance.