In 2012, the U.S.Congress enacted the Stop

Trading on Congressional Knowledge

(STOCK) Act to curb insider trading by

lawmakers and federal officials. The Act

mandates that members of Congress and

senior federal officials disclose securities

transactions over $1,000 within 45 days,

extending the prior annual reporting

requirement, and confirms they are subject

to insider trading laws. However, the

STOCK Act has faced criticism for weak

enforcement, spotty compliance, and

insufficient penalties. Investigations by

media outlets highlighted numerous

violations without accompanying

disciplinary action. Legal complexities and

constitutional protections, such as the

'speech and debate" clause, hinder insider

trading prosecutions under the Act .

In response to these shortcomings, recent

legislative efforts have aimed to strengthen restrictions. In 2022, House Speaker Nancy

Pelosi introduced the Combatting Financial

Conflicts of Interest in Government Act,

which would prohibit federal officials and

their immediate families from owning or

trading individual stocks, securities

commodities, futures, and cryptocurrencies.

The bill requires these individuals to place

their investments in a qualified blind trust

within 180 days. Despite addressing

conflicts of interest by including officials

spouses and dependents, the bill has faced

criticism for potentially creating new ethics

concerns and diminishing current transparency efforts.

Public scrutiny intensified during the

COVID-19 pandemic, when several members

of Congress were suspected of using early

information to their financial benefit

leading to calls for stricter measures

including a comprehensive ban on trading

individual stocks, effective enforcement and extending restrictions to family members to restore public trust #CongressTradingBan