U.S. House of Representatives advances the "Prohibition of Insider Trading Act," introducing new restrictions on congressional stock trading

【Blockchain Rhythm】Recently, the US Congress has made another big move. On January 12th, it was reported that House Republicans are collectively pushing a stock trading restriction bill aimed at closing loopholes that allow lawmakers to trade stocks using insider information. The bill is drafted by House Administrative Committee Chair and Wisconsin Congressman Brian Stile, and its content is straightforward—prohibiting members of both houses of Congress from increasing their holdings in individual stocks.

This proposal is called the “Insider Trading Ban Act” and has already received support from the Republican leadership in the House, with various factions within the party also endorsing it. It is scheduled to be formally introduced on Monday.

However, there is a detail: while restricting individual stock trading, lawmakers can still continue to buy and sell diversified investment funds. In other words, it’s not a complete ban, but a prohibition on heavily betting on single stocks. This approach can prevent the use of insider information for precise stock manipulation while still allowing them to participate in the market through funds.

This reflects the increasing emphasis from the market and regulators on trading transparency and fairness. Similar compliance ideas can also be seen in the cryptocurrency market—more and more exchanges are strengthening information disclosure and preventing insider trading.