The House Administration Committee is poised to review a new legislative proposal this Wednesday, which seeks to introduce stricter regulations on stock trading activities by lawmakers. The initiative, spearheaded by Committee Chair Bryan Steil alongside House GOP leaders, aims to mitigate insider trading concerns but stops short of a complete ban, according to sources familiar with the matter.

Under the proposed legislation, current members of Congress will be permitted to retain any stocks they already own but will be required to provide a seven-day notice prior to selling any such stocks. Moreover, the bill seeks to prevent lawmakers and their spouses from acquiring new stocks, marking a significant shift in how congressional stock transactions are managed.

The move comes as Speaker Mike Johnson and other top Republicans strive to find a middle ground that satisfies both the leadership and more radical elements within the party, such as Representative Anna Paulina Luna (R-Fla.). Luna and her supporters have previously threatened to bypass party leadership with a discharge petition to enforce a stricter trading ban.

In a recent development, Luna expressed her approval of the proposed measures, particularly praising the inclusion of a “disgorgement” period, which would potentially enhance transparency and accountability in congressional stock trades.

Despite these efforts, the bill is set to face considerable opposition. Senior Democrats have already voiced their discontent, arguing that the measures do not go far enough to constitute a comprehensive prohibition of stock trading within Congress. They are expected to push for more stringent amendments during the legislative process.

Additionally, the Senate's response remains uncertain, with several key Republican senators expressing strong reservations about altering the existing regulations. This could potentially stall the bill's progress should it successfully pass through the House.

As the markup approaches, all eyes will be on the House Administration Committee to see whether this initiative can bridge the gap between various factions within Congress and lead to meaningful reform in how lawmakers engage with the stock market. The outcome could have significant implications for transparency and the integrity of decision-making within the U.S. legislature.