The U.S. House of Representatives passed a bill that would ban members of Congress, their spouses and dependent children from buying new listed stocks.
Cointelegraph reported on Thursday that the House on Wednesday approved the Stop Insider Trading Act by 232 votes to 198 and sent it to the Senate.
The bill focuses on preventing lawmakers from profiting from stock trades using insider information. Representative Brian Steil (브라이언 스틸), who introduced the bill, included strict penalties for violations.
Some Democrats criticised the bill, saying it does not sufficiently address conflicts of interest. They said lawmakers would still be allowed to keep stocks they already own and could sell them. Steil explained that requiring advance notice seven days before selling existing holdings would curb insider trading.
Senator Elizabeth Warren (엘리자베스 워런) said on Thursday the bill has a major loophole. She said it would not solve the problem because lawmakers can continue to hold and sell stocks, and said it would not pass the Senate. She added that lawmakers should not be allowed to hold, buy or sell stocks.
Chi-gyu Hwang
delight@d-today.co.kr