STOCK Act Gains Momentum After 60 Minutes Exposes Congressional Insider Trading

The Stop Trading on Congressional Knowledge (STOCK) Act gained explosive momentum after CBS’s 60 Minutes aired an investigation on November 13, 2011, revealing that several members of Congress allegedly used non-public information obtained through their official positions for personal financial gain. The investigation documented that stock portfolios held by House members from 1985 to 2001 beat the market average by approximately 6 percent annually, while Senate portfolios outperformed by about 10 percent—statistical anomalies strongly suggesting insider trading.

The STOCK Act, originally introduced by Washington Congressman Brian Baird, had languished in Congress for years. Following the 60 Minutes report, Republican Senator Scott Brown and Democratic Senator Kirsten Gillibrand reintroduced legislation to prohibit members and employees of Congress, as well as executive branch employees, from using non-public information obtained through their public service for investing or any personal financial gain. Within five days of the broadcast, the bill received 84 additional House co-sponsors.

The legislation responded to mounting evidence that Congress operated under different rules than ordinary Americans. While corporate insiders faced strict restrictions and criminal penalties for trading on material non-public information, members of Congress could attend classified briefings about upcoming policy changes, economic data, or regulatory actions and immediately trade stocks in affected industries. The 60 Minutes investigation transformed congressional insider trading from an obscure ethics issue into a national scandal, forcing Congress to act on legislation that would ostensibly ban the practice—though subsequent gutting of disclosure requirements would undermine enforcement.