New Insider Trading Ban Barely Scratches The Surface As Congress Tries To Appease Americans

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The new insider trading ban legislation passed by the House stops short of a comprehensive ban on an issue many Americans have expressed concern about.

The Stop Insider Trading Act, passed by the House on Wednesday with a vote of 232-198, had more than a dozen Democrats join Republicans in support.

Public support for banning members of Congress from trading individual stocks while in office has grown after years of scrutiny over lawmakers’ well-timed trades and soaring investment portfolios. However, the legislation advanced by the House falls well short of the sweeping ban sought by many advocates that would target selling stocks and limit federal officials more broadly.

Introduced by Republican Wisconsin Rep. Bryan Steil, the bill would prohibit members of Congress from purchasing individual stocks while in office but would allow them to keep stocks they already own. Lawmakers could also continue selling individual stocks, provided they publicly disclose their intent to sell at least seven days beforehand.

The measure would also sharply increase penalties for disclosure violations. Members who fail to properly report stock transactions could face fines of $2,000 or 10% of the transaction’s value, whichever is greater. That would be an increase from the current $200 penalty for a first offense, according to CNBC. (Read more from “New Insider Trading Ban Barely Scratches The Surface As Congress Tries To Appease Americans” HERE)