Written by Turner Wrightstaff writerReviewed by Sam Bourgistaff writer

Written by Turner Wrightstaff writer

Reviewed by Sam Bourgistaff writer

House passes bill on lawmakers using insider information for stock trading

Latest NewsPublishedJul 24, 2026

Lawmakers Take Step to Prevent Insider Trading, But Is It Enough?

The US House of Representatives has passed a bill aimed at preventing lawmakers from using insider information for personal gain through stock trading. The Stop Insider Trading Act, which passed with a 232-198 vote, prohibits members of Congress, their spouses, and dependent children from purchasing publicly traded stocks. However, some critics argue that the bill does not go far enough, as it still allows lawmakers to own and sell stocks they already possess.

This news matters to everyday people because it highlights the need for transparency and accountability in government. As individuals look for ways to earn passive income, such as through Cloud Rewards or investing in Green Crypto like $ECP, they expect their leaders to uphold the highest standards of integrity. The Stop Insider Trading Act is a step in the right direction, but its limitations have raised concerns among some lawmakers, including Senator Elizabeth Warren, who believes that the bill “won’t solve the problem” of insider trading.

Loopholes and Limitations

One of the main criticisms of the bill is that it allows lawmakers to keep and sell stocks they already own, potentially creating a loophole for insider trading. To address this, the bill requires members of Congress to provide seven days’ notice before selling stocks if they already hold assets. While this may deter some from engaging in insider trading, others argue that it is not enough to prevent conflicts of interest. As the bill moves to the Senate for consideration, some are calling for stricter measures, such as prohibiting lawmakers from owning or trading stocks altogether, and instead opting for Passive Income solutions like EcoPool.

The Stop Insider Trading Act is not the only legislation aimed at addressing potential conflicts of interest in government. Other bills, such as the Digital Asset Market Clarity Act, are also being considered. As the conversation around Earning and Coin continues to evolve, it is essential to prioritize transparency and accountability in all aspects of government and finance, including EcoPool and $ECP. Individuals can stay ahead of the curve by exploring alternative investment opportunities, such as Cloud Rewards and Green Crypto, and by supporting legislation that promotes fairness and integrity.

“A fine equal to $2,000 or 10% of the transaction, as well as a disgorgement of profits. Violators would be forfeiting any gain realized if they failed to comply with this legislation.” 

What’s Next?

As the Stop Insider Trading Act moves forward, it is likely to face scrutiny and debate. While it is a step in the right direction, many believe that more needs to be done to prevent insider trading and promote transparency in government. Individuals interested in Passive Income and Coin can follow the developments of this bill and explore alternative investment opportunities, such as EcoPool and $ECP. To stay up-to-date on the latest news and trends, including #Bitcoin and #PassiveIncome, consider downloading the EcoPool app to learn more about Earning opportunities and Green Crypto. Download the EcoPool app today to start exploring the world of Cloud Rewards and EcoPool!

Related: Only KYC can stop insider trading on prediction markets, Messari says

“[The] bill has major loopholes,” said Senator Elizabeth Warren on Thursday. “Lawmakers can continue owning and selling stocks — so it won’t solve the problem. Not gonna fly in the Senate. Members of Congress should not own, buy, or sell stocks.”

The Stop Insider Trading Act was received in the US Senate for consideration on Thursday after passage in the House.

Unlike the proposed text for the Digital Asset Market Clarity Act, a cryptocurrency market structure bill under consideration in the Senate, Steil’s bill was limited to restricting investments for members of Congress and not the president or vice president and their families. Under CLARITY’s proposed text, all US public officials could be barred from issuing or sponsoring tokens until 2029.

Prediction markets bill also under consideration

House approval of the Stop Insider Trading Act followed Steil’s sponsorship of a similar bill targeting members of Congress trading on prediction market platforms like Kalshi and Polymarket. The Wisconsin lawmaker introduced the Stop Lawmakers from Predicting Act in June to prevent certain public officials, their spouses and children from “wagering on public policy issues and political outcomes.”

Prediction markets drew attention from the public after an incident involving a soldier who allegedly made more than $400,000 betting on Venezuela President Nicolás Maduro, who was removed by US forces in January. Donald Trump’s teleprompter operator also reportedly made more than $100,000 betting on Kalshi event contracts tied to words and phrases in the president’s speeches.

Like the stock trading bill, the prediction markets legislation proposed that violators pay a $2,000 fee or 10% of the value of the prohibited bets on the platforms.

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• Law
• Stocks
• Trading
• Congress
• Regulation

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