The issue of stock trading among members of Congress has gained renewed attention this week following an endorsement from Republican President Donald Trump during his annual State of the Union address. The controversial practice, often criticized for mingling personal financial interests with legislative responsibilities, has led to renewed calls for a ban on individual stock trading for legislators.
In North Carolina, candidates vying for the open U.S. Senate seat are already weighing in on the topic. Notably, Democrat Roy Cooper and several GOP candidates, including Trump’s endorsed primary candidate Michael Whatley, have indicated their support for restricting or banning congressional stock trading altogether.
Currently, members of Congress have the legal ability to trade individual stocks, but this has raised concerns over potential conflicts of interest. Critics argue that members could leverage non-public information regarding upcoming votes or important policy changes to make profitable trades—an act perceived as ethically dubious. Additionally, members involved in drafting legislation for specific industries may find themselves in positions that could influence their personal investments.
Although Trump’s commitment to banning congressional stock trading is unclear—given his history of pardoning members of Congress involved in financial misconduct—the idea resonates well with the public. Recent polling from the University of Maryland revealed that an impressive 86% of Americans would support such a ban. The pressure is particularly acute for Republicans facing tough political conditions ahead of the midterm elections, as Trump’s approval ratings remain low.
Both of North Carolina’s current U.S. senators, Republicans Ted Budd and Thom Tillis, have reported millions in stock market investments, yet they do not engage in trading individual companies. Their financial disclosures indicate investments in mutual funds and exchange-traded funds instead.
As the Senate race heats up, candidates are positioning themselves on this contentious issue. While Cooper publicly advocates for a ban, Whatley’s endorsement of the idea has been viewed with skepticism due to his significant investments in individual company stocks—primarily in the energy sector. Whatley, a former lobbyist for oil and gas firms, has a reported net worth of between $3.35 million and $10.44 million.
In an escalating exchange of words, Cooper challenged Whatley to act consistently with his newfound stance on stock trading by divesting from his individual stocks. Cooper pointed out that he has avoided such investments during his public service, stressing a commitment to ethical governance. Whatley, however, refrained from accepting Cooper’s pledge and instead directed accusations towards Cooper, questioning his own ethical standing during his term as governor regarding a controversial natural gas pipeline project.
The conflict draws attention to the intertwining of personal finances and public service ethics, a long-standing issue that calls for accountability among elected officials. While candidates may advocate for reform, the practical steps towards implementing such changes remain to be seen as the candidates wage their campaigns.
