U.S. Sens. Bill Cassidy (R-LA) and Deb Fischer (R-NE) joined a group of Republican lawmakers on March 18 to introduce the Stop Insider Trading Act, legislation that would prohibit members of Congress, their spouses, and dependent children from purchasing publicly traded stocks.
S. 4134 would also mandate that members provide public notice at least seven days, but no more than 14 days, in advance of any intended stock sale. Violations would carry a penalty of $2,000 or 10% of the investment value, whichever is greater, plus forfeiture of any net gain realized from the sale.
“Members of Congress shouldn’t cash in on information the public doesn’t have. That’s wrong,” Sen. Cassidy said. “Let’s put a stop to it.”
The public deserves to trust that those elected to Congress are not profiting from the positions they hold, Sen. Fischer said.
“The Stop Insider Trading Act ensures Members cannot use insider knowledge for financial gain, and offers a clear, common-sense approach to how Congress regulates itself,” she said.
Bill sponsor U.S. Sen. Pete Ricketts (R-NE) framed the bill as essential to restoring public confidence in Congress. “Trust in Congress remains at an all-time low,” Sen. Ricketts said. “To fix that, we need to prove we are playing by the same rules as everyone else.”
Additional cosponsors include U.S. Sen. Todd Young (R-IN), among several others.
The legislation is the Senate companion to a bill led by House Administration Committee Chairman Bryan Steil (R-WI) in the House, H.R. 7008, that was introduced in January.