H.R. 7008: Stop Insider Trading Act

H.R. 7008 would stop Members of Congress, their spouses, and their dependent children from buying individual stocks and similar investments while the Member is in office.

The ban is broader than just common shares. It also covers lookalike bets such as options, warrants, derivatives, and other tools that can mimic stock ownership.

The bill still allows some investments. Broad funds, certain U.S.-focused or home-state-focused funds, some small-business holdings, certain trusts the family does not control, and automatic dividend reinvestment would stay allowed.

If a covered person wants to sell, the public would get a heads-up first — the notice must be filed 7 to 14 days before the sale and posted online by the House or Senate. That filing has to include the planned sale date, what is being sold, and how many shares are involved.

The enforcement piece is the bill's main pressure point. A violation would trigger the greater of $2,000 or 10% of the transaction value, plus any net gain earned while the person was covered by the law.

For a $50,000 prohibited trade, 10% would be $5,000 — well above the minimum — and any profit from the investment could still be clawed back. If the violation involved a prohibited purchase, the asset would also have to be sold.

The bill also says lawmakers cannot shift those penalties onto taxpayers, office budgets, or campaign money. If enacted, the new rules would start 180 days later.