A bill to amend the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by those who possess material, nonpublic information, and for other purposes.
About This Bill
Committee
Latest Action · August 6, 2026
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S4520-4521)
This bill creates a new federal law making it explicitly illegal for anyone to trade securities while possessing material, nonpublic information they know or recklessly disregard is secret and obtained wrongfully. The law also prohibits people from improperly sharing such secret information with others if they know it will lead to trading based on that information. The bill applies broadly to stocks, bonds, and other financial instruments, and covers trades made directly or indirectly, including through intermediaries. The legislation provides limited exceptions for pre-planned trades that comply with existing securities regulations and allows the Securities and Exchange Commission to grant additional exemptions as needed. By adding this new section to existing securities law, the bill strengthens the government's ability to prosecute insider trading cases and impose penalties, affecting corporate insiders, investment professionals, and anyone else who might trade on confidential information they obtained improperly.
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