Stop Insider Trading Act
Latest Action
Received in the Senate.
Official Summary
Stop Insider Trading Act This bill generally prohibits Members of Congress and their spouses and dependent children from purchasing stocks and requires public notice before these individuals may sell stocks. Specifically, Members of Congress and the spouses and dependent children of Members of Congress may not purchase covered investments. Between 7 and 14 days before a Member or a covered spouse or dependent sells a covered investment, the relevant Member must file public notice of the intent to sell with the Clerk of the House of Representatives or the Secretary of the Senate, as appropriate. The Clerk or Secretary must publish this notice online. If the individual decides not to sell the covered investment, the notice must be withdrawn. Under the bill, a covered investment is a security issued by a publicly traded company or a comparable economic interest. Some investments are exempt, including interest in a widely held investment fund and certain investments held in a trust. Violations of these provisions are subject to a fee and, in the case of a purchase, a requirement to sell the covered investment. The fee must equal (1) the greater of $2,000 or 10% of the transaction value, and (2) any net gain realized from the transaction during a specified period. The fee may not be paid using campaign donations or Members’ official allowances. Certain transactions by covered spouses and dependents are exempt, including transactions made on behalf of another person or made as part of compensation from the individual’s employer.
GovScope Watchdog™
AI Government Intelligence™The Stop Insider Trading Act is a legislative proposal aimed at preventing Members of Congress, their spouses, and dependent children from purchasing stocks and requiring public notification before selling stocks. The bill defines covered investments as securities issued by publicly traded companies or similar economic interests, with exemptions for widely held investment funds and certain trusts. It mandates public notice of intent to sell between 7 and 14 days prior to the sale, which must be filed with the Clerk of the House or Secretary of the Senate and published online. Violations result in financial penalties and mandatory sale of the investment, with restrictions on using campaign funds or official allowances to pay these fees. Some transactions by spouses and dependents are exempt, such as those made on behalf of others or as employment compensation.
This bill seeks to increase transparency and restrict stock trading activities by Members of Congress and their immediate family to reduce potential conflicts of interest.
- Prohibits Members of Congress and their spouses and dependent children from purchasing covered investments.
- Requires public notice 7 to 14 days before selling covered investments, with online publication of the notice.
- Violations incur fees equal to the greater of $2,000 or 10% of the transaction value plus any net gains, and require divestment of the investment.
['General public, through increased transparency and potential reduction in conflicts of interest', 'Government ethics oversight bodies, by having clearer rules and enforcement mechanisms', 'Investors and markets, by potentially reducing insider trading risks involving lawmakers']
['Implementation challenges related to monitoring and verifying compliance with purchase prohibitions and sale notifications', 'Administrative costs for the Clerk of the House and Secretary of the Senate to manage and publish notices', 'Enforcement complexity in assessing fees and ensuring they are not paid with prohibited funds', 'Potential ambiguity in defining covered investments and exemptions, which may require further clarification']
The bill was introduced in the House during the 119th Congress and has been received in the Senate as of July 23, 2026. It addresses ongoing concerns about insider trading and conflicts of interest among Members of Congress by imposing new restrictions and transparency requirements on their stock transactions.
High concern review — 3 hidden impact flags detected
GovScope reviewed 3 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['Increased transparency may enhance public trust in congressional ethics and reduce perceived conflicts of interest.', 'Restrictions on stock purchases could lead Members of Congress and their families to alter investment strategies, potentially increasing use of exempt investment vehicles.', 'The administrative requirements may prompt development of new compliance systems or technologies within congressional offices.']
The bill introduces new transparency and enforcement mechanisms for congressional stock transactions, but the absence of full bill text limits detailed analysis of definitions and procedural specifics. Oversight bodies should monitor implementation challenges related to enforcement of fees and public notice requirements. Clear guidance on exemptions and definitions will be critical to avoid loopholes or inconsistent application.
GovScope Intelligence Roadmap
Future bill intelligence will connect sponsors, committee referrals, related votes, campaign finance, disclosures, and stock trades into one legislative intelligence view.