Senator Coons this evening voted ‘yes’ on the motion to proceed to the bipartisan Stop Trading on Congressional Knowledge (STOCK) Act, which would clarify that Members of Congress are subject to insider trading laws and create new reporting requirements for those who serve. In particular, it prohibits members and their staff from using “nonpublic information” obtained as part of their official duty for “personal benefit.”
Chris feels strongly that Congress should live by the same rules as every other American, and that the STOCK Act is worthy of the deep, bipartisan support shown in the Senate’s overwhelming cloture vote Monday night.
The STOCK Act clarifies what some perceive to be a hole in existing insider trading laws, stating explicitly that Members of Congress owe a “duty” to the United States Government and their citizens, and thus cannot breach that duty by trading on nonpublic information. Beyond this clarification, the STOCK Act provides a general prohibition against any personal gain derived from obtaining nonpublic information through a member’s duties.
The Act also increases the reporting requirements under the Ethics in Government Act. Currently, any purchase or sale of a security (public or private) must be reported annually. The Act will now require reports to be made within 30 days of the transaction.
With the motion to proceed agreed-to, the STOCK Act now awaits a vote of final passage later this week, then consideration in the House of Representatives and the President’s signature.