Prohibit Insider Trading Act

Hozzl · 2023-12-15T15:54:51Z

Explore the details of House Bill 1138 Prohibit Insider Trading Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Congress. Stay informed on legislative developments.

12/15/2023, 3:54 PM

Summary of Bill HR 1138

Bill 118 hr 1138, also known as the Prohibit Insider Trading Act, is a piece of legislation introduced in the US Congress. The main purpose of this bill is to prevent members of Congress and other government officials from using nonpublic information to make financial trades, also known as insider trading.

The bill aims to increase transparency and accountability in government by prohibiting individuals with access to confidential information from using that information for personal gain. This includes members of Congress, their staff, and other government officials who may have access to sensitive information that could impact financial markets.

If passed, the Prohibit Insider Trading Act would establish clear guidelines and restrictions on trading based on nonpublic information. It would also require government officials to disclose their financial transactions in a timely manner to ensure that they are not using their positions for personal profit. Overall, the Prohibit Insider Trading Act seeks to uphold ethical standards and integrity in government by preventing insider trading and ensuring that public officials are held accountable for their actions.

Congressional Summary of HR 1138

Prohibiting Insider Trading Act

This bill prohibits Members of Congress (or their spouses) from holding or trading certain investments (e.g., individual stocks and related financial instruments other than diversified investment funds, investments in the federal retirement savings plan, or U.S. Treasury securities).

Generally, the prohibition applies seven days after the first day of a Member's initial term, though for current Members, it applies on the first day of the second session of the 118th Congress. Additionally, the prohibition does not apply to assets held in a qualified blind trust.

Any profit stemming from a prohibited holding or transaction must be disgorged to the Treasury and may subject the Member to a civil fine. Additionally, a loss stemming from a prohibited holding or transaction may not be used as an income tax deduction.

Each Member must submit an annual certification of compliance to the supervising ethics office. The office must publish each certification on a public website and periodically audit Members' compliance with the bill's provisions.

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Current Status of Bill HR 1138

Bill HR 1138 is currently in the status of Bill Introduced since February 21, 2023. Bill HR 1138 was introduced during Congress 118 and was introduced to the House on February 21, 2023. Bill HR 1138's most recent activity was Referred to the Committee on House Administration, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. as of February 21, 2023

Bipartisan Support of Bill HR 1138

Total Number of Sponsors

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Unaffiliated Sponsors

Total Number of Cosponsors

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Policy Area and Potential Impact of Bill HR 1138

Primary Policy Focus

Congress

Alternate Title(s) of Bill HR 1138

Prohibit Insider Trading Act

To amend title 5, United States Code, to prohibit transactions involving certain financial instruments by Members of Congress and their spouses, and for other purposes.