Stop Insider Trading Act
Summary
The Stop Insider Trading Act aims to prevent members of Congress, their spouses, and dependents from using non-public information for personal financial gain. It amends Title 5 of the United States Code to impose restrictions on stock ownership and trading. The bill requires members to provide advance notice of stock sales and establishes penalties for violations, including fees and potential referral to the Department of Justice.
Expected Effects
This act would likely reduce potential conflicts of interest and increase public trust in government. It restricts the ability of members of Congress and their families to profit from inside information. The Act enforces transparency through mandatory reporting of stock transactions.
Potential Benefits
- Increased public trust in government.
- Reduced potential for conflicts of interest.
- Greater transparency in financial dealings of members of Congress.
- Discourages the use of non-public information for personal gain.
- Promotes ethical conduct among elected officials.
Potential Disadvantages
- Potential for hindering legitimate investment activities.
- Compliance costs for members of Congress.
- Possible challenges in enforcing the restrictions.
- May deter qualified individuals from seeking public office.
- Could be perceived as overly restrictive by some.
Constitutional Alignment
The Act aligns with the principle of promoting the general welfare, as outlined in the Preamble of the US Constitution, by ensuring that elected officials act in the public interest rather than for personal enrichment. Congress's authority to regulate its members is derived from Article I, Section 5, which grants each house the power to determine the rules of its proceedings and punish its members for disorderly behavior. The Act does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).