U.S. House Passes Legislation Targeting Insider Trading by Congress Members

The U.S. House of Representatives has passed a bill prohibiting legislators and their families from purchasing newly issued listed stocks. According to Coin Telegraph, the House approved the 'Stop Insider Trading Act' on June 23 with 232 in favor and 198 against. The legislation focuses on preventing legislators from profiting from insider information. Sponsored by Congressman Brian Steele, the bill includes strict penalties for violations. However, some Democrats criticize the bill for not adequately addressing conflicts of interest, as it allows existing stock holdings to remain and permits sales. Steele proposed requiring advance notice of 7 days before selling existing holdings to curb insider trading. Senator Elizabeth Warren criticized the bill on June 24, stating it fails to resolve the issue as legislators can still hold and trade stocks, predicting it won't pass the Senate. Warren emphasized that legislators should not be allowed to hold, buy, or sell stocks.