Stop Insider Trading Act

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.
• 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.
• 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.
• 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.

Votes

No votes have been recorded for this legislation yet.

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