Legislation imposes $2,000 fines or 10% of transaction value for violations but allows existing stock holdings.
The US House of Representatives passed a bill prohibiting members of Congress, their spouses, and dependent children from buying or selling publicly traded stocks. The Stop Insider Trading Act cleared the House in a 232-198 vote and now heads to the Senate for consideration.
The bill introduces penalties including a $2,000 fine or 10% of the transaction value, along with disgorgement of profits. Lawmakers would also be required to provide seven days’ notice before selling existing stock holdings. Previous attempts to address insider trading in Congress have stalled.
Critics argue the legislation does not go far enough, as it permits lawmakers to retain and sell stocks they already own, potentially maintaining conflicts of interest.