Rep. Crank Votes to Ban Lawmakers from Using their Positions to Benefit off of Insider Trading

WASHINGTON, D.C. -- Today, Representative Jeff Crank (CO-05) voted in favor of H.R. 7008, the Stop Insider Trading Act.

The Stop Insider Trading Act ensures that lawmakers cannot use their positions to profit off of insider trading. It bans Members, their spouses, and their dependent children from purchasing securities issued by a publicly traded company. It also requires Members to file a public notice at least 7 days in advance for any intended stock sale with the Clerk of the House of Representatives.

"For years, Members of Congress have gotten rich off insider information—that's plain wrong," said Rep. Crank. "To be clear: I don't own any individual, publicly traded stock, and as long as I represent the people of Colorado's Fifth Congressional District, I will never buy any. The Stop Insider Trading Act will work to restore integrity to Congress by banning stock trading by Members of Congress."

Background:

• Violators will be assessed a fine equal to $2,000 or 10% of the value of the transaction, whichever is greater, and any net gain from a transaction.
• Exceptions include:
  • Widely held investment fund, diversified and publicly traded;
  • Employment compensation received by Member, their spouse, or dependent child;
  • Investments held in a trust as long as the covered individual has no authority over a trustee of the trust;
  • Financial interest in a small business concern.

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