What is the STOCK Act?
The Stop Trading on Congressional Knowledge (STOCK) Act, passed in 2012, requires members of Congress to disclose any stock trade over $1,000 within 45 days. The filings are public record.
Before the STOCK Act, Congress was effectively exempt from insider trading laws. The Act was passed after 60 Minutes reported that members were trading stocks in industries they were simultaneously regulating — and profiting from it.
Key stat: A 2021 study by the Journal of Financial Economics found that Congress members who trade stocks related to their committee work outperform the market by an average of 9% annually.
Most-Watched Congressional Traders
Nancy Pelosi (D-CA)
Historically outperforms S&P 500One of the most-watched traders in Congress. Her husband Paul Pelosi's tech options trades have consistently outperformed the market.
Dan Crenshaw (R-TX)
Above-market returnsFrequent trader with a focus on energy and defense stocks — sectors directly affected by his committee assignments.
Tommy Tuberville (R-AL)
Frequently disclosed tradesMade news for trading defense stocks while serving on the Senate Armed Services Committee.
Josh Gottheimer (D-NJ)
Very active traderOne of the most active traders in Congress — dozens of trades per quarter.
Why Do Politicians Beat the Market?
The academic evidence is clear: members of Congress who sit on committees that oversee specific industries trade those industries' stocks — and outperform. There are a few explanations:
Legislative foreknowledge
They know which bills are advancing before the market does. An energy committee member who knows a subsidy bill will pass can buy energy stocks before the news is public.
Regulatory timing
They know when regulatory changes are coming — drug approvals, defense contracts, antitrust investigations — before the companies disclose them.
Government contract information
Defense and technology committee members often know which companies are winning federal contracts before public announcement.
Network effects
Congress members interact with CEOs and lobbyists constantly. Even if trading on specific tips is illegal, the informational advantage is enormous.
How to Use Congress Trade Data
Don't blindly copy. Here's a smarter approach:
Filter by committee relevance
A trade is most significant when the member sits on the committee that oversees the company's industry. An Armed Services Committee member buying a defense stock is more meaningful than the same trade by an Agriculture Committee member.
Look for clusters
When multiple Congress members buy the same stock in the same week, pay attention. If 5+ politicians buy a biotech before an FDA decision, something may be known.
Watch the filing date vs trade date
STOCK Act allows 45 days delay. By the time you see the filing, the trade may already have played out. React to clusters and patterns, not individual trades.
Cross-reference with technical signals
Don't buy just because a politician did. Wait for technical confirmation — RSI oversold, support level, or breakout — before entering.
Track Congress Trades on Quantara
Quantara aggregates STOCK Act filings and shows you recent congressional trades, sorted by date, amount, and party. See what politicians are buying right now.
View Congress Trades →