Rep. Debbie Wasserman Schultz (D-FL), a former Democratic National Committee leader, has come under scrutiny for a stock trade that has seen an exceptional rise in value. The congresswoman disclosed a 2024 purchase of shares in New Gold, a Canadian mining company, which has since surged over 300%, according to Quiver Quantitative, an organization that monitors congressional stock trades.
Quiver Quantitative brought attention to the transaction via social media, singling out Wasserman Schultz as the sole member of Congress to invest in New Gold. This development has reignited discussions about the propriety of lawmakers participating in the stock market, where they might leverage non-public information for personal gain.
Enacted in 2012, the Stop Trading on Congressional Knowledge (STOCK) Act mandates that Congress members report stock trades within 45 days, aiming to foster transparency and minimize conflicts of interest. However, Trending Politics reports that enforcement is lax, with the Campaign Legal Center noting that penalties for violations are often minimal, rarely exceeding $200.
Despite the STOCK Act's intent, no members of Congress have been prosecuted for insider trading under its provisions, leading critics to argue that the law is ineffective in curbing potential abuses. Ethics organizations have consistently called for stricter regulations on stock trading by lawmakers.
A recent survey revealed that merely 5 percent of current Congress members refrain from holding stocks. Moreover, a significant portion of the 2025 freshman class has declared stock ownership. Public opinion strongly disapproves of such practices, with an overwhelming 86 percent of Americans in favor of banning stock trading by legislators.
In response to these concerns, Sen. Josh Hawley (R-MO) introduced the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act. The bill, if passed, would bar Congress members and their spouses from trading stocks while in office. Hawley, in his statement to Fox News, underscored that elected officials should prioritize serving their constituents over personal financial interests. Former President Donald Trump echoed this sentiment, expressing support for such a ban in a Time Magazine interview.
Wasserman Schultz's trade in New Gold has cast a spotlight on the discrepancy between lawmakers' financial actions and the regulations that are supposed to oversee them. While the STOCK Act was conceived to enhance transparency, it is criticized for its lack of enforcement power and for doing little to deter wrongdoing.
As the PELOSI Act and similar reform efforts gain momentum, Wasserman Schultz's investment has become a focal point in the ongoing debate over the intersection of public service and private financial gain. The substantial profit realized from the stock's triple-digit increase, combined with inadequate oversight, has amplified calls for a complete prohibition on individual stock trading by members of Congress.
