Insider Trading Prohibition Act

Hozzl · 2023-03-08T19:58:39Z

Explore the details of House Bill 2655 Insider Trading Prohibition Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

3/8/2023, 7:58 PM

Summary of Bill HR 2655

Bill 117 HR 2655, also known as the Insider Trading Prohibition Act, is a piece of legislation introduced in the US Congress with the aim of preventing insider trading in the stock market. Insider trading occurs when individuals with access to non-public information about a company use that information to make trades and profit off of it, which is considered illegal and unethical.

The bill seeks to clarify and strengthen existing laws related to insider trading by explicitly defining what constitutes insider trading and providing clear guidelines for enforcement. It also aims to increase transparency and accountability in the financial markets by requiring individuals who trade securities to disclose any material non-public information they possess.

Additionally, the Insider Trading Prohibition Act includes provisions to enhance the Securities and Exchange Commission's (SEC) ability to investigate and prosecute insider trading cases. This includes granting the SEC the authority to seek civil penalties against individuals found guilty of insider trading, as well as providing protections for whistleblowers who report insider trading violations. Overall, the Insider Trading Prohibition Act is designed to protect investors and ensure a level playing field in the stock market by cracking down on illegal insider trading practices. It is currently being debated in Congress, with supporters arguing that it is necessary to maintain the integrity of the financial markets, while opponents raise concerns about potential unintended consequences and the need for further clarification on certain aspects of the bill.

Congressional Summary of HR 2655

Insider Trading Prohibition Act

This bill generally provides statutory authority for the prohibition against securities trading, as well as related communications to others, by a person aware of material, nonpublic information. The bill further provides, for purposes of establishing a violation of this prohibition, that it is not necessary for such a person to know specifically how such information was obtained or whether a personal benefit was paid or promised.

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Current Status of Bill HR 2655

Bill HR 2655 is currently in the status of Bill Introduced since April 19, 2021. Bill HR 2655 was introduced during Congress 117 and was introduced to the House on April 19, 2021. Bill HR 2655's most recent activity was Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of May 19, 2021

Bipartisan Support of Bill HR 2655

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Policy Area and Potential Impact of Bill HR 2655

Primary Policy Focus

Finance and Financial Sector

Potential Impact Areas

Fraud offenses and financial crimesGovernment information and archivesSecurities

Alternate Title(s) of Bill HR 2655

Insider Trading Prohibition ActInsider Trading Prohibition ActInsider Trading Prohibition ActTo amend the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by those who possess material, nonpublic information.Insider Trading Prohibition Act

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