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House passes Stop Insider Trading Act for members' stock trades
The measure passed 232 to 198 on Wednesday and now goes to the Senate for consideration, with supporters pointing to notice requirements before sales and critics citing loopholes that still allow existing stock holdings.
The US House of Representatives passed the Stop Insider Trading Act, a bill that would prohibit members of Congress, their spouses and dependent children from purchasing publicly traded stocks, according to Cointelegraph. The House approved the legislation in a 232 to 198 vote on Wednesday and sent it to the Senate for further action on Thursday. Bill sponsor Representative Bryan Steil, of Wisconsin, said the proposal is intended to prevent lawmakers from profiting from insider information and to impose strict penalties for violations. He also said the bill would require members of Congress to give seven days’ notice before selling stocks they already hold, adding a deterrent effect. Some Democrats have argued the bill is not strong enough to address conflicts of interest because it allows lawmakers to keep and sell stocks they already own. Senator Elizabeth Warren said on Thursday that the act has major loopholes, arguing that it would not solve insider trading because lawmakers can continue owning and trading stocks. The bill received in the Senate on Thursday. Cointelegraph noted it is separate from a Senate consideration involving cryptocurrency legislation on market structure, including a comparison to the Digital Asset Market Clarity Act that, unlike the Stop Insider Trading Act, would broaden restrictions to public officials beyond members of Congress.