Stop Insider Trading Act
Key claim: The Stop Insider Trading Act would prohibit Members of Congress and their spouses and dependent children from purchasing covered securities and require public notice 7–14 days before any sale, with fees and forced divestiture for violations.
Abstract
(HR7008 · 119th Congress) 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 If the individual decides not to sell the covered investment, the notice must be withdrawn.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. Latest action (2026-02-03): Placed on the Union Calendar, Calendar No. 409.
Why this matters
The bill would tighten the post-STOCK Act ethics regime by moving from disclosure to an outright purchase ban for Members of Congress and their immediate family, plus a pre-sale notice window that gives markets visibility into legislator trades before they occur. For investors, it signals a continued congressional appetite to constrain lawmaker trading in covered securities; for compliance and ethics offices, it introduces new divestiture and fee mechanics that would need implementation by the House Clerk and Senate Secretary.