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Banning Insider Trading in Congress Act
12/30/2022, 3:49 AM
Summary of Bill HR 6490
If passed, the Banning Insider Trading in Congress Act would require members of Congress and their staff to disclose any securities transactions within 45 days of making the trade. This transparency measure is intended to ensure that lawmakers are not using their privileged access to information for personal profit.
Additionally, the bill would establish a new enforcement mechanism within the Securities and Exchange Commission (SEC) to investigate and prosecute cases of insider trading by members of Congress. This would provide greater oversight and accountability for any potential violations of the law. Overall, the Banning Insider Trading in Congress Act is a bipartisan effort to promote ethical behavior and integrity within the legislative branch. By prohibiting insider trading and increasing transparency, the bill aims to restore public trust in Congress and ensure that lawmakers are acting in the best interests of the American people.
Congressional Summary of HR 6490
Banning Insider Trading in Congress Act
This bill prohibits a Member of Congress or spouse of a Member from holding, purchasing, or selling certain investments. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the Member to a civil fine. A loss from a transaction or holding involving a covered financial instrument that is conducted in violation of this bill may not be deducted from the amount of income tax owed by the applicable Member or spouse.
The bill also requires each Member to submit an annual certification of compliance and requires the Government Accountability Office to conduct a compliance audit.
The prohibition does not apply to assets held in a qualified blind trust or to a sale by a Member or spouse within 180 days after the bill is enacted or within 180 days after the Member commences service, for any Member who commences service after the bill is enacted.
