On April 16, former President Donald Trump endorsed a proposal to ban insider trading by members of Congress.
The measure, if enacted, could change the way financial transactions by lawmakers are perceived by the public and regulated by authorities, increasing demands for greater transparency in the operations of the political sector.
The proposal comes after controversial episodes involving influential lawmakers, such as Alexandria Ocasio-Cortez and Mike Levin, who drew attention to stock trading practices during periods of political instability. “The American people deserve to know whether any representative took advantage of their office for personal gain,” said Ocasio-Cortez, arguing for greater clarity and accountability in Congress.
An insider trading scandal is brewing.
Trump’s 9:30am tweet makes it clear he was eager for his people to make money off the private info only he knew. So who knew ahead of time and how much money did they make?
— Chris Murphy (@ChrisMurphyCT) April 10, 2025
From a financial market perspective, potential regulation could have a particular impact on traditional stock markets. By tightening rules on the use of privileged data by lawmakers, institutional trust in financial transactions is expected to increase. However, experts believe that the direct effects on the cryptocurrency market are likely to be limited in the short term, although stricter regulatory frameworks could affect the perception of credibility of the financial environment as a whole.
The debate also rekindles memories of past controversies, such as Nancy Pelosi’s business dealings, which raised concerns about potential conflicts of interest between holding public office and trading in assets. The lack of concrete action in previous episodes has contributed to public skepticism about the accountability of elected officials.
This time, however, there is a more consistent mobilization by Democrats and Republicans who recognize the need to modernize transparency rules in Congress. The debate could influence future proposals that also involve the cryptocurrency sector, especially if the focus on regulatory integrity expands beyond the traditional market.