The Stop Insider Trading Act would bar Members of Congress, their spouses, and their dependent children from buying individual stocks in publicly traded companies while the member is in federal office, though they could keep money in diversified funds, small-business interests, or certain blind trusts. Before selling any covered stock, a Member would have to publicly disclose the planned sale between 7 and 14 days in advance, including the date, description, and number of shares involved. Violations would trigger a financial penalty of at least $2,000 or 10 percent of the transaction's value, plus repayment of any gains, and members could not use official office funds or campaign contributions to pay the fine. This affects the 535 Members of Congress and their immediate families, aiming to prevent lawmakers from trading on nonpublic information they may access through their official duties. The restrictions would take effect 180 days after the bill becomes law.
Transparency & Accountability
- Stock ownership restriction — Members of Congress and their spouses/dependent children barred from buying individual company stock
- Pre-sale disclosure requirement — Public notice of an intended stock sale required 7 to 14 days in advance
- Enforcement penalties — Violations trigger fees of at least $2,000 or 10% of transaction value, plus forfeiture of gains
Congressional Summary
Stop Insider Trading ActThis bill generally prohibits Members of Congress and their spouses and dependent children from purchasing stocks and requires public notice before these individuals may sell stocks.Specifically, Members of Congress and the spouses and dependent children of Members of Congress may not purchase covered investments. Between 7 and 14 days before a Member or a covered spouse or dependent sells a covered investment, the relevant Member must file public notice of the intent to sell with the Clerk of the House of Representatives or the Secretary of the Senate, as appropriate. The Clerk or Secretary must publish this notice online. If the individual decides not to sell the covered investment, the notice must be withdrawn.Under the bill, a covered investment is a security issued by a publicly traded company or a comparable economic interest. Some investments are exempt, including interest in a widely held investment fund and certain investments held in a trust.Violations of these provisions are subject to a fee and, in the case of a purchase, a requirement to sell the covered investment. The fee must equal (1) the greater of $2,000 or 10% of the transaction value, and (2) any net gain realized from the transaction during a specified period. The fee may not be paid using campaign donations or Members’ official allowances.Certain transactions by covered spouses and dependents are exempt, including transactions made on behalf of another person or made as part of compensation from the individual’s employer.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Reported to House
- Action Date
- 2026-02-03
- Date Added
- 2026-07-18
- Source
- Congress.gov →
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