General Discussion

Here are the key details regarding insider trading laws in Washington, D.C.:
Federal Authority: The SEC uses Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 to prosecute insider trading, prohibiting anyone (including government officials) from using nonpublic information for personal profit.

The STOCK Act (2012): This act prohibits members of Congress, their families, and staff from using nonpublic information gained through their work for insider trading. It also requires them to disclose stock trades within 30 to 45 days.

Proposed Strengthening Legislation (2025-2026): Because the STOCK Act penalties are low ($200 for late reporting), new legislation such as the Stop Insider Trading Act (introduced in Jan 2026) has been proposed to outright ban members from purchasing individual stocks, requiring them to sell or divest from their holdings.

Current Debate: While insider trading is officially illegal, there is significant ongoing political debate regarding its enforcement, with some lawmakers and activists pushing for stricter bans (e.g., the ETHICS Act) due to perceived loopholes.
Campaign Legal Center

In short, insider trading is illegal in D.C., and members of Congress are specifically restricted by the STOCK Act, with proposed legislation aiming to further restrict their ability to trade stocks. Representative Tom Barrett | (.gov)