Congress·In Committee·S. 4134

Sen. Ricketts Introduces Stop Insider Trading Act to Ban Lawmakers and Families From Buying Stocks

Stop Insider Trading Act

7 days ago·View on Congress.gov·Read full text

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Key Points

The bill would ban Members of Congress, their spouses, and their dependent children from purchasing individual stocks in publicly traded companies. The aim is to prevent lawmakers from profiting off nonpublic information they access through their government roles.
From policy text
“no covered individual may purchase a covered investment”
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If a lawmaker or family member wants to sell a stock they already own, they must file a public notice at least 7 days (and no more than 14 days) before the sale, disclosing the projected date, a description, and the number of shares involved.
From policy text
“No covered individual may sell a covered investment, unless a notice of intent to sell the covered investment is made by the relevant Member of Congress, on behalf of the Member of Congress or the spouse or dependent child of the Member of Congress, as applicable, and publicly disclosed at least 7 calendar days, and not more than 14 calendar days, prior to the sale”
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Lawmakers could still invest in diversified funds like mutual funds and ETFs, hold interests in small businesses, or use qualifying blind trusts where no covered individual can influence investment decisions and the trustee is not a close family member of the lawmaker.
Violators face a fine of $2,000 or 10% of the trade's value (whichever is higher), plus they must forfeit any net gains from the illegal trade. Fees are deposited into the U.S. Treasury as miscellaneous receipts.
Lawmakers are banned from using their government office budget or campaign donations to pay these fines—they must pay out of their own pockets. If a member resigns or retires before paying, the ethics office can refer the matter to the Attorney General.
From policy text
“A Member of Congress may not pay any of the fees under this section by using amounts from the following sources”
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The new rules would take effect 180 days after the bill is signed into law, giving lawmakers a six-month transition period to adjust their investment portfolios.
From policy text
“The amendments made by this Act shall take effect on the date that is 180 days after the date of enactment of this Act.”
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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Mar 18, 2026Senate

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Mar 18, 2026

Introduced in Senate

Related News

3 articles

Washington Examiner·7 days ago

Pete Ricketts introduces legislation banning congressional stock trades

Senator Pete Ricketts introduced the Senate companion to the Stop Insider Trading Act. The bill implements a total ban on purchasing new stocks for members and their families and requires a 7-to-14-day public notice period before any existing stocks can be sold.

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Truthout·15 days ago

Congressional Stock Trading Ban Backed by Trump Is Full of Loopholes

Critics argue the Stop Insider Trading Act allows too many workarounds, such as permitting investments in precious metals and cryptocurrencies. The article contrasts the bill with the 'No Getting Rich in Congress Act,' which would impose much stricter bans.

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Sludge·2 months ago

GOP Stock Trading Bill Leaves Glaring Conflicts Untouched

An investigative look at the Stop Insider Trading Act reveals it would allow committee chairs to keep stocks in companies they directly oversee. Watchdog groups describe the bill as a 'smokescreen' that ignores the core issue of existing financial conflicts.

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