“The American People Deserve Confidence That Congress Acts in the Public Interest, Not for Personal Profit.”
Legislation Would Prohibit Members of Congress From Purchasing Individual Stocks While in Office
WASHINGTON — Yesterday, Congressman Vern Buchanan, Vice Chairman of the House Ways and Means Committee, helped introduce legislation to prohibit Members of Congress from profiting off insider information. The Stop Insider Trading Act, led by Rep. Bryan Steil (R-Wis.), would ban Members of Congress, their spouses and dependent children from purchasing individual stocks of publicly traded companies while in office.
“The American people deserve confidence that Congress acts in the public interest, not for personal profit,” said Buchanan. “Members should never be able to use insider information for personal gain, undermining trust and transparency in government. I’m proud to be an original cosponsor of this legislation, which establishes clear guardrails while still allowing responsible investment through diversified vehicles like index funds and ETFs.”
The Stop Insider Trading Act would apply to future transactions only and would not require Members to sell individual securities they currently own. If a Member, spouse or dependent child chooses to sell an individual stock, the bill requires public notice at least seven days, but no more than fourteen days, in advance of the transaction. The legislation also establishes penalties for violations, including a civil fine equal to the greater of $2,000 or ten percent of the transaction’s value, as well as the forfeiture of any net gains.
Read the full bill text here.
Buchanan is a respected leader in Florida’s business community and has created thousands of jobs over the course of his career. He previously chaired both the Florida Chamber of Commerce and the Sarasota Chamber of Commerce and currently serves as Vice Chairman of the U.S. House Ways and Means Committee.
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