Can a sitting president have his company buy bonds?
Executive summary
A sitting president can legally buy bonds and can have his company purchase or hold bonds in most circumstances because federal law does not categorically bar the president from owning or trading securities; presidents are subject to disclosure rules but are exempt from many standard conflict-of-interest restrictions that apply to other federal officials [1] [2]. That legal space is constrained by reporting requirements (the STOCK Act/Ethics in Government Act) and by constitutional Emoluments Clauses when foreign governments or their instrumentalities are involved, and critics say those gaps create accountability risks [3] [4] [5].
1. Legal baseline: no per se prohibition on presidential securities ownership
Multiple legal summaries and news reports note there is no statutory ban that outright forbids a president or vice president from owning or trading stocks, bonds, or running private businesses while in office; scholars and outlets repeatedly point out the president is treated differently under federal conflict-of-interest rules compared with other officials [1] [6] [2].
2. Reporting and disclosure requirements that do apply
When a president (or vice president) engages in “reportable transactions” such as purchases of stocks or bonds, federal law requires periodic disclosure under the Ethics in Government Act and supplemental rules like the STOCK Act, which forces reportability for securities transactions above modest thresholds within a set window [3] [7]. News organizations reporting on President Trump’s bond purchases cite Office of Government Ethics filings and note that filings list ranges rather than exact prices, a feature of current disclosure law [7] [8].
3. Practical limits: Emoluments and foreign-government dealings
The Constitution’s Emoluments Clauses restrict federal officers from accepting presents or payments from foreign states without congressional consent, and legal experts warn that business dealings with foreign governments or their instrumentalities could trigger constitutional or statutory scrutiny even if ordinary bond purchases would not [4] [5]. Watchdogs and legal centers argue that enforcement is weak and that Congress is the primary actor that can tighten rules or authorize enforcement [4] [5].
4. How arrangements like blind trusts and third‑party managers fit in
Voluntary mechanisms—blind trusts or third‑party managers—are commonly recommended to reduce conflicts: rules for true blind trusts require no pre‑existing relationship or communications between the owner and the trustee so the official has no role in selecting assets [9]. Administration officials have defended using independent managers to select bonds on the president’s behalf, and ethics officials have certified filings under current law, but critics say certification and managerial arrangements do not eliminate conflicts in practice [8] [2].
5. Political and reform dynamics that matter to any answer
Legislative proposals that would bar trading or force divestment for presidents, vice presidents and members of Congress have advanced in various forms and enjoy bipartisan interest, reflecting political pressure to close the so‑called “presidential loophole,” but as of the cited reporting no such law had been enacted to ban presidents from buying bonds or other securities outright [10] [11] [1]. Advocacy groups and legal scholars press Congress to either tighten disclosure, create enforceable divestment rules, or clarify the Emoluments enforcement path [2] [5].
6. Bottom line: legally permissible but politically fraught
Under current federal law and practice, a sitting president—or a private company controlled by the president—can buy bonds, and presidents must disclose reportable transactions, but they are not subject to the same conflict-of‑interest prohibitions as other officials and dealings with foreign governments invite additional constitutional scrutiny; reform proposals and watchdog warnings underscore that legality does not erase ethical or political consequences [3] [1] [4] [5].