# US Congress passes bill banning insider trading by lawmakers The law aims to prevent lawmakers from profiting from insider information. - **Source:** [Cointelegraph.com News](https://brifing.si/source/2e81e982-0137-4db0-8ac2-351f37085775) - **Published:** 2026-07-24 - **Original article:** - **On Brifing:** https://brifing.si/s/e38fd93a-a678-4d9d-80d6-dfc136ae783e ## What does the law target? The US House of Representatives approved a bill banning members of Congress, their spouses, and children from purchasing publicly traded stocks. The law aims to prevent profiting from insider information. ## What are the penalties? Violators will face a fine of $2,000 or 10% of the transaction value. Additionally, any profits gained must be disgorged. ## Criticism from Democrats Some Democrats argue the law doesn’t fully address conflicts of interest, as it allows lawmakers to sell existing stocks. ## Sent to the Senate After passing the House, the bill was sent to the Senate for consideration. A similar bill is also under review in the Senate. ## Regulation on prediction markets The law also restricts betting on prediction markets, aiming to prevent public officials from wagering on policy outcomes. ## The significance of the law This law is a crucial step in preventing public officials from gaining unfair advantages in financial markets, but its full impact depends on the Senate process. ## Sources covering this story - https://cointelegraph.com/news/house-bill-lawmakers-insider-information-stock-trading?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._