Ricketts introduces bill to prevent insider trading in Congress
Nebraska senator says proposal would restrict stock trading by lawmakers and their families to increase public trust
FILE-The Capitol is seen in Washington, Tuesday, Aug. 26, 2025, as Congress is scheduled to return from their August break Tuesday, Sept. 2, 2025, after Labor Day. (AP Photo/J. Scott Applewhite, file)
WASHINGTON — U.S. Sen. Pete Ricketts has introduced legislation aimed at banning stock trading by members of Congress and their families, saying the proposal is intended to restore public trust.
The bill, known as the “Stop Insider Trading Act,” would prohibit lawmakers, their spouses and dependent children from purchasing individual stocks while serving in office.
Under the proposal, members of Congress and their families could keep stocks they already own but would be required to publicly disclose plans to sell those assets at least seven days, and no more than 14 days, in advance.
The legislation would also impose penalties for violations, including a fine of $2,000 or 10% of the transaction value, whichever is greater, as well as forfeiture of any profits from the sale.
“No lawmaker should ever profit from insider information,” Ricketts said in a statement. “Public service is a privilege, not a profit center.”
The bill is a Senate companion to legislation introduced in the House by Rep. Bryan Steil of Wisconsin.
Ricketts’ proposal is co-sponsored by several Republican senators, including Dave McCormick of Pennsylvania, Deb Fischer of Nebraska and Roger Marshall of Kansas.
Insider trading by members of Congress is already illegal under federal law, and lawmakers are required to disclose stock trades under the STOCK Act. However, members are still allowed to buy and sell individual stocks, prompting ongoing efforts to further restrict the practice.