New Bill Proposes Restrictions on Stock Trading for Lawmakers
Republican Congressman Bryan Steil has spearheaded the drafting of the "Stop Insider Trading Act," aiming to prohibit lawmakers from purchasing new individual stocks. The proposal is set to be submitted on Monday, marking a significant step in tightening financial oversight in Congress.
Under the proposed bill, lawmakers will be barred from investing in new stocks, though they will still be allowed to trade diversified funds. Existing stock holdings do not need to be sold, but if a sale is planned, public disclosure will be required 7 to 14 days in advance.
Scope of Regulation Limited to Stocks
Notably, the legislation does not extend to other investment vehicles like bonds or commodities, leaving those areas unaffected by the new rules.
- Restrictions on new individual stock investments
- Freedom to trade fund products
- Public disclosure required for stock sales
This legislative effort aims to address public concerns about insider trading while allowing lawmakers to maintain some flexibility in their financial dealings.