House passes Stop Insider Trading Act in 232-198 vote

The US House of Representatives approved the Stop Insider Trading Act on Wednesday by a 232-198 vote, advancing legislation that would prohibit members of Congress, their spouses and dependent children from purchasing securities issued by publicly traded companies. The bill now heads to the Senate after being received there on Thursday. Representative Bryan Steil, the Wisconsin Republican who introduced the measure in January, said it is designed to prevent lawmakers from using information gained through public office for personal benefit. The bill would allow existing holdings to remain in place, but any sale would require public notice filed with the clerk of the House or the secretary of the Senate at least seven days and no more than 14 days before the transaction. Penalties would be set at $2,000 or 10% of the covered investment’s value, whichever is higher, plus surrender of any profit from a prohibited trade. The proposal has drawn criticism from some Democrats who argue it leaves major conflicts of interest intact because it allows lawmakers to keep and sell stocks they already own. Senator Elizabeth Warren said on Thursday that the bill has “major loopholes” and “not gonna fly in the Senate” because lawmakers could continue owning and selling individual stocks, while she favors a broader ban on owning, buying or selling them. The measure is narrower than ethics language being considered as part of the Digital Asset Market Clarity Act, or CLARITY. The source says a revised 616-page draft would prohibit covered federal officials, including the president, vice president, lawmakers and federal judges, from issuing or sponsoring digital assets through Jan. 20, 2029, while Steil’s stock-trading bill applies only to Congress and specified immediate family members. Alongside the stock legislation, Steil has also proposed the Stop Lawmakers from Predicting Act, introduced on June 18, to bar members of Congress, their spouses and dependent children from wagering on political outcomes or public-policy questions through platforms such as Kalshi and Polymarket. That bill would apply a similar penalty of $2,000 or 10% of a prohibited wager’s value, whichever is higher, plus forfeiture of net gains.