US House Passes Bill Restricting Congressional Stock Purchases
The US House of Representatives has passed the Stop Insider Trading Act in a 232–198 vote, sending the legislation to the Senate.
The bill would prohibit members of Congress, their spouses and dependent children from purchasing publicly traded stocks. Violations could result in a $2,000 fine or 10% of the transaction value, along with the forfeiture of any profits.
Critics say the proposal contains significant loopholes because lawmakers would still be allowed to retain and sell stocks they already own, provided they give seven days’ notice. Senator Elizabeth Warren said the measure does not go far enough and is unlikely to pass the Senate in its current form.
The US House of Representatives has passed the Stop Insider Trading Act in a 232–198 vote, sending the legislation to the Senate.
The bill would prohibit members of Congress, their spouses and dependent children from purchasing publicly traded stocks. Violations could result in a $2,000 fine or 10% of the transaction value, along with the forfeiture of any profits.
Critics say the proposal contains significant loopholes because lawmakers would still be allowed to retain and sell stocks they already own, provided they give seven days’ notice. Senator Elizabeth Warren said the measure does not go far enough and is unlikely to pass the Senate in its current form.