Stop Insider Trading Act

The Stop Insider Trading Act aims to prevent Members of Congress, their spouses, and their dependent children from using non-public information for financial gain. If enacted, the bill would prohibit these individuals from purchasing any new stocks in publicly traded companies while the Member is in office. While lawmakers would be allowed to keep stocks they already own, they would be required to provide public notice at least seven days, but no more than 14 days, before selling any of those investments.

To ensure compliance, the legislation proposes significant financial penalties for violations. Individuals who break these rules could face a fine of $2,000 or 10% of the investment's value, whichever is greater. Additionally, any profits made from an improper sale would be forfeited. These penalties would be paid into the general fund of the U.S. Treasury and could not be covered using official congressional funds. The bill is intended to increase transparency and restore public trust by ensuring that elected officials do not profit from their positions of power.