Stop Insider Trading Act
- Bill Number
- H.R. 7008
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Congress
- Status
- Introduced
- Latest Action
- 2026-02-03: Placed on the Union Calendar, Calendar No. 409.
- Last Updated
- 2026-06-11T23:26:32Z
AI-Generated Summary
Purpose of the Legislation
The "Stop Insider Trading Act" (H.R. 7008) aims to prevent potential conflicts of interest and insider trading by restricting Members of Congress, their spouses, and dependent children from buying or selling stocks and similar investments in publicly traded companies while serving in office. It promotes transparency and ethical standards in government by limiting personal financial activities that could benefit from non-public information.
Key Provisions
- Definitions:
- Covered individuals: Includes Members of Congress (as defined under existing ethics laws), their spouses, and dependent children.
- Covered investments: Securities (e.g., stocks) issued by publicly traded companies, including derivatives like options or warrants. Excludes diversified mutual funds, funds concentrated in the U.S. or the individual's home state/territory, small business interests, and blind trusts where the individual has no control over the trustee.
- Supervising ethics office: Refers to the House or Senate ethics committees that oversee compliance.
- Restrictions on Investments:
- Prohibits covered individuals from purchasing any covered investment during federal service.
- Requires advance notice for sales: Members must file and publicly disclose intent to sell at least 7 days (but no more than 14 days) before the transaction, including details like projected sale date, description, and number of shares. Notices must be withdrawn if the sale does not occur.
- Filing is done with the Clerk of the House (for House members) or Secretary of the Senate (for Senators), and disclosures are posted online.
- Exceptions:
- Spouses or dependent children are exempt if transactions are part of their professional duties (e.g., as financial advisors) or for others' benefit, not personal gain.
- Reinvesting dividends from existing covered investments is allowed.
- Enforcement:
- Violations result in fees paid by the responsible Member: the greater of $2,000 or 10% of the transaction value, plus any net gains from the investment since becoming a covered individual.
- For illegal purchases, the investment must be sold.
- Fees cannot be paid from official office funds, campaign contributions, or similar sources; they go to the U.S. Treasury.
- Unpaid fees can lead to referral to the Department of Justice, even if the Member resigns or retires.
- Ethics offices can issue guidance, considering mitigating factors.
- Effective Date: Takes effect 180 days after enactment.
Significant Changes to Existing Law
This bill amends Chapter 131 of Title 5, United States Code (which covers ethics in government), by adding a new Subchapter IV on "Restrictions on Covered Investments." It introduces novel bans on purchases and notice requirements for sales, building on prior ethics rules (like financial disclosure requirements) but specifically targeting stock trading to close gaps that allowed potential insider advantages. No prior federal law explicitly banned such purchases for congressional family members.
Potential Impacts
- On Government Agencies: Supervising ethics offices (House and Senate committees) will handle increased enforcement, filings, and guidance, potentially requiring more resources for reviews and public disclosures. The Department of Justice may see referrals for non-payment, adding to its workload.
- On Citizens: Enhances public access to information about congressional trading via online disclosures, which could foster greater trust in government by reducing perceptions of unfair financial advantages. No direct impact on everyday citizens' finances or rights.
- On International Relations: No apparent effects, as the bill focuses on domestic ethics and personal investments.
Main Stakeholders Affected
- Primary: Members of Congress (over 50 bipartisan sponsors listed), their spouses, and dependent children, who face new limits on personal investing.
- Secondary: House and Senate ethics committees (as supervising offices), the Clerk of the House, Secretary of the Senate, and Department of Justice (for enforcement referrals).
- Broader: The public, as beneficiaries of increased transparency in government finances.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing ethics frameworks by adding enforceable penalties and forced divestitures, potentially increasing compliance burdens but providing clearer rules to avoid unintentional violations. Interpretative guidance allows flexibility for edge cases.
- Constitutional: Aligns with Congress's authority to regulate its members' conduct under Article I (e.g., to prevent conflicts of interest), without infringing on free speech or due process, as it targets specific financial actions rather than expression.
- Political: Addresses public concerns about stock trading by elected officials (highlighted in recent scandals), with broad bipartisan support suggesting potential for passage. Could influence future ethics reforms but may face debate over family inclusion or exceptions for professional roles.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (93)
Rep. Hudson, Richard [R-NC-9], Rep. Griffith, H. Morgan [R-VA-9], Rep. Murphy, Gregory F. [R-NC-3], Rep. Bice, Stephanie I. [R-OK-5], Rep. Carey, Mike [R-OH-15], Rep. Miller, Mary E. [R-IL-15], Rep. Lee, Laurel M. [R-FL-15], Rep. Biggs, Andy [R-AZ-5], Rep. Ogles, Andrew [R-TN-5], Rep. Luna, Anna Paulina [R-FL-13], Rep. Roy, Chip [R-TX-21], Rep. Taylor, David J. [R-OH-2], Rep. Van Orden, Derrick [R-WI-3], Rep. Bacon, Don [R-NE-2], Rep. Johnson, Dusty [R-SD-At Large], Rep. Hurd, Jeff [R-CO-3], Rep. Joyce, John [R-PA-13], Rep. Collins, Mike [R-GA-10], Rep. Lawler, Michael [R-NY-17], Rep. Baumgartner, Michael [R-WA-5], Rep. Cloud, Michael [R-TX-27], Rep. Feenstra, Randy [R-IA-4], Rep. Franklin, Scott [R-FL-18], Rep. Mann, Tracey [R-KS-1], Rep. Buchanan, Vern [R-FL-16], Rep. Timmons, William R. [R-SC-4], Rep. Kim, Young [R-CA-40], Rep. Nunn, Zachary [R-IA-3], Rep. Cline, Ben [R-VA-6], Rep. Crenshaw, Dan [R-TX-2], Rep. Harris, Andy [R-MD-1], Rep. Arrington, Jodey C. [R-TX-19], Rep. Alford, Mark [R-MO-4], Rep. Yakym, Rudy [R-IN-2], Rep. Kennedy, Mike [R-UT-3], Rep. Miller-Meeks, Mariannette [R-IA-1], Rep. James, John [R-MI-10], Rep. Mills, Cory [R-FL-7], Rep. Cammack, Kat [R-FL-3], Rep. Barrett, Tom [R-MI-7], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. LaLota, Nick [R-NY-1], Rep. Mackenzie, Ryan [R-PA-7], Rep. Schmidt, Derek [R-KS-2], Rep. Fedorchak, Julie [R-ND-At Large], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Hinson, Ashley [R-IA-2], Rep. Rutherford, John H. [R-FL-5], Rep. Smith, Christopher H. [R-NJ-4], Rep. Ciscomani, Juan [R-AZ-6] and 43 more
Recent Actions
- 2026-02-03: Placed on the Union Calendar, Calendar No. 409.
- 2026-02-03: Reported (Amended) by the Committee on House Administration. H. Rept. 119-479.
- 2026-02-03: Reported (Amended) by the Committee on House Administration. H. Rept. 119-479.
- 2026-01-14: Ordered to be Reported (Amended) by the Yeas and Nays: 7 - 4.
- 2026-01-14: Committee Consideration and Mark-up Session Held
- 2026-01-12: Referred to the House Committee on House Administration.
- 2026-01-12: Introduced in House
- 2026-01-12: Introduced in House
Bill Versions
- Stop Insider Trading Act — issued 2026-01-12 — PDF (9 pages)
- Stop Insider Trading Act — issued 2026-02-03 — PDF (10 pages)