{"id":6328,"date":"2022-06-27T21:39:48","date_gmt":"2022-06-28T01:39:48","guid":{"rendered":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/?page_id=6328"},"modified":"2025-05-12T11:13:11","modified_gmt":"2025-05-12T15:13:11","slug":"time-for-a-broad-prophylactic-against-congressional-insider-trading","status":"publish","type":"page","link":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/submit\/glj-online\/glj-online-vol-111\/time-for-a-broad-prophylactic-against-congressional-insider-trading\/","title":{"rendered":"Time for a Broad Prophylactic Against Congressional Insider Trading"},"content":{"rendered":"<p class=\"p2\"><em><span class=\"s1\"><span class=\"Apple-converted-space\">\u00a0<\/span><\/span>In 2011, Peter Schweizer published a book, Throw Them All Out, in which he exposes some questionable means by which politicians manage to increase their personal wealth fifty percent faster than the average American.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_1' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_1'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>1<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_1' class='visually_hide'>Open footnote #1<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_1' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_1' tabindex='-1'>1<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #1 content: <\/span>PETER SCHWEIZER, THROW THEM ALL OUT xvii (2011).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup>\u00a0<\/sup><\/span>Schweizer suggests that trading on material nonpublic information is one method by which congresspersons achieve outsized returns on their investments.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_2' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_2'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>2<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_2' class='visually_hide'>Open footnote #2<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_2' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_2' tabindex='-1'>2<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #2 content: <\/span><i>See id. <\/i>at xvii, xviii.\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup>\u00a0<\/sup><\/span>He cites one study finding that, while the average American investor underperforms the market when trading in individual stocks, \u201c[t]he average senator beats the market by 12% a year.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_3' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_3'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>3<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_3' class='visually_hide'>Open footnote #3<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_3' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_3' tabindex='-1'>3<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #3 content: <\/span>\u00a0<i>Id. <\/i>at xviii.\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup>\u00a0<\/sup><\/span>This statistic is concerning on its own, but it is downright disturbing when considered alongside the same study\u2019s finding that corporate insiders and hedge funds (the usual targets of most insider trading complaints) beat the market on average by about only seven percent.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_4' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_4'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>4<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_4' class='visually_hide'>Open footnote #4<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_4' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_4' tabindex='-1'>4<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #4 content: <\/span><em>Id.\u00a0<\/em>\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup><span class=\"Apple-converted-space\">\u00a0<\/span><\/sup><\/span><\/em><\/p>\n<p class=\"p2\"><em>Schweitzer\u2019s book was followed by a feature story on the CBS News show, 60 Minutes, highlighting some dubious stock trades by leaders of both political parties.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_5' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_5'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>5<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_5' class='visually_hide'>Open footnote #5<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_5' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_5' tabindex='-1'>5<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #5 content: <\/span>\u00a0<i>See, e.g.<\/i>, John Bresnahan, <i>\u201860 Minutes\u2019 on \u2018Honest Graft\u2019<\/i>, POLITICO (Nov. 13, 2011), https:\/\/www.politico.com\/story\/2011\/11\/60-minutes-on-honest-graft-068271 [https:\/\/perma.cc\/D6SD-UDE6].\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup>\u00a0<\/sup><\/span>These stories got the public\u2019s attention and spurred Congress to act, adopting the Stop Trading on Congressional Knowledge (STOCK) Act in April of 2012.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_6' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_6'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>6<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_6' class='visually_hide'>Open footnote #6<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_6' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_6' tabindex='-1'>6<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #6 content: <\/span>\u00a015 U.S.C. \u00a7 78u-1.\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup><span class=\"Apple-converted-space\">\u00a0<\/span><\/sup><\/span><\/em><\/p>\n<p class=\"p3\"><em>The STOCK Act made explicit what many already regarded as implicit\u2014 that congressional trading based on material nonpublic information acquired by virtue of their positions as public servants is a breach of their fiduciary duties and therefore constitutes insider trading in violation of the general anti-fraud provisions of Section 10b of the Securities Exchange Act of 1934.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_7' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_7'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>7<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_7' class='visually_hide'>Open footnote #7<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_7' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_7' tabindex='-1'>7<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #7 content: <\/span>\u00a0<i>See id. <\/i>\u00a7 78u-1(g)(1).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s2\"><sup><span class=\"Apple-converted-space\">\u00a0<\/span><\/sup><\/span>Violations of Section 10b can lead to civil enforcement actions brought by the Securities and Exchange Commission (SEC) and criminal enforcement by the Department of Justice (DOJ).\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_8' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_8'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>8<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_8' class='visually_hide'>Open footnote #8<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_8' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_8' tabindex='-1'>8<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #8 content: <\/span>Section 10b was implemented by the SEC with Exchange Act Rule 10b-5. 17 C.F.R. \u00a7 240.10b-5 (2022). Civil penalties for insider trading violation can include, <i>inter alia<\/i>, injunctive relief, disgorgement, and a fine of up to three times the profits gained or losses avoided by the illegal trading. <i>See <\/i>STEPHEN M. BAINBRIDGE, INSIDER TRADING LAW AND POLICY 141\u201344 (2014). Criminal convictions for insider trading can be punished by a five million dollar fine and up to twenty years imprisonment. 15 U.S.C. \u00a7 78ff(a). \u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t The STOCK Act also expanded disclosure requirements for members of Congress, the Executive Branch, and their staff members.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_9' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_9'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>9<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_9' class='visually_hide'>Open footnote #9<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_9' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_9' tabindex='-1'>9<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #9 content: <\/span><i>See, e.g.<\/i>, Office of White House Press Secretary, <i>FACT SHEET: The STOCK Act: Bans Members of Congress from Insider Trading<\/i>, THE WHITE HOUSE (Apr. 4, 2012), https:\/\/obamawhitehouse.archives.gov\/the-press-office\/2012\/04\/04\/fact-sheet-stock-actbans-members-congress-insider-trading [https:\/\/perma.cc\/5XMA-E7UT]; <i>see also infra <\/i>Part I for a more detailed discussion of the STOCK Act\u2019s disclosure requirements.\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup><span class=\"Apple-converted-space\">\u00a0<\/span><\/sup><\/span><\/em><\/p>\n<p class=\"p2\"><em>No sooner had the STOCK Act passed, however, than it was quietly overhauled to weaken certain key disclosure provisions,\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_10' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_10'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>10<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_10' class='visually_hide'>Open footnote #10<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_10' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_10' tabindex='-1'>10<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #10 content: <\/span><i>See <\/i>Tamara Keith, <i>How Congress Quietly Overhauled Its Insider-Trading Law<\/i>, NPR (Apr. 16, 2013), https:\/\/www.npr.org\/sections\/itsallpolitics\/2013\/04\/16\/177496734\/howcongress-quietly-overhauled-its-insider-trading-law [https:\/\/perma.cc\/QNV5-KAY2]; <i>see also <\/i>infra Part I. \u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>and in any event the Act has not been enforced consistently since its adoption.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_11' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_11'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>11<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_11' class='visually_hide'>Open footnote #11<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_11' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_11' tabindex='-1'>11<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #11 content: <\/span><i>See, e.g.<\/i>, Dave Levinthal, <i>\u2018Conflicted Congress\u2019: Key Findings from Insider\u2019s Five-Month Investigation into Federal Lawmakers\u2019 Personal Finances<\/i>, INSIDER (Dec. 17, 2021), https:\/\/www.businessinsider.com\/conflicted-congress-key-findings-stock-actfinances-investing-2021-12 (noting that \u201clawmakers and top congressional staffers face minimal and inconsistently applied penalties for violating the STOCK Act\u201d).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>For example, an investigative counsel in the House of Representatives\u2019 independent Office of Congressional Ethics recently admitted \u201cenforcement of the [STOCK Act\u2019s] financial-disclosure requirements is virtually nonexistent.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_12' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_12'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>12<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_12' class='visually_hide'>Open footnote #12<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_12' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_12' tabindex='-1'>12<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #12 content: <\/span>Camila DeChalus, Kimberly Leonard &amp; Dave Levinthal, <i>Congress and Top Capitol Hill Staff Have Violated the STOCK Act Hundreds of Times. But the Consequences Are Minimal, Inconsistent, and Not Recorded Publicly.<\/i>, INSIDER (Dec. 17, 2021), https:\/\/www.businessinsider.com\/congress-stock-act-violations-penalties-consequences2021-12. \u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>As a result, public cynicism concerning congressional insider trading has once again snowballed. A recent poll found that seventy-six percent of American voters think members of Congress have an \u201cunfair advantage\u201d in trading stocks.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_13' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_13'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>13<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_13' class='visually_hide'>Open footnote #13<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_13' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_13' tabindex='-1'>13<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #13 content: <\/span>Bryan Metzger, <i>76% of Voters Disagree with Pelosi, Think Members of Congress Have an \u2018Unfair Advantage\u2019 in Trading Stocks: Poll<\/i>, INSIDER (Jan. 7, 2022), https:\/\/www.businessinsider.com\/76-percent-disagree-with-pelosi-congress-unfairadvantage-stock-trading-2022-1. \u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>In fact, many market participants build their trading strategies upon the assumption that congresspersons are trading on material nonpublic information. For example, a popular website tracks congressional trading in individual stocks and identifies \u201cbuy\u201d and \u201csell\u201d trends.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_14' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_14'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>14<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_14' class='visually_hide'>Open footnote #14<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_14' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_14' tabindex='-1'>14<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #14 content: <\/span><i>See What\u2019s Trading on Capitol Hill?<\/i>, CAPITOL TRADES, https:\/\/www.capitoltrades.com\/ [https:\/\/perma.cc\/J35C-J2QS] (last visited June 5, 2022). The website organizes congressional trading data by category. For example, the \u201cLatest\u201d category highlights recently traded stocks, and the \u201cBiggest Players\u201d category highlights the most actively trading politicians. <i>Id.\u00a0<\/i>\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>The website explains that \u201c[t]racking Capitol Hill politicians\u2019 trades can provide valuable insights for your investment research \u2014 and we offer you a free solution to do just that.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_15' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_15'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>15<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_15' class='visually_hide'>Open footnote #15<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_15' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_15' tabindex='-1'>15<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #15 content: <\/span><em>Id<\/em>.\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Some politicians have achieved almost cult status on social media for their stock trading. For example, Speaker Nancy Pelosi\u2019s stock trades have a regular online following on Twitter, TikTok, and Reddit, with popular accounts such as \u201c@NancyTracker.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_16' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_16'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>16<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_16' class='visually_hide'>Open footnote #16<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_16' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_16' tabindex='-1'>16<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #16 content: <\/span><i>See, e.g.<\/i>, Joshua Bote, <i>The Financial Gurus on TikTok and Twitter Obsessively Tracking Nancy Pelosi\u2019s Stock Trades<\/i>, SFGATE (Feb. 3, 2022), https:\/\/www.sfgate.com\/nationalpolitics\/article\/Nancy-Pelosi-viral-stock-trades-16826801.php [https:\/\/perma.cc\/APX85T6T]; House Speaker Pelosi\u2019s Stock Trades Attract Growing Following Online, Newsmax (Jan. 26 , 2022), https:\/\/www.newsmax.com\/politics\/pelosi-stock-trades-onlineattention\/2022\/01\/26\/id\/1054069\/ [https:\/\/perma.cc\/KW59-UYTP] [hereinafter Pelosi\u2019s\u00a0\nStock Trades].\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Moreover, the search \u201cPelosi stock trades\u201d hit a record high on Google in January 2022.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_17' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_17'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>17<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_17' class='visually_hide'>Open footnote #17<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_17' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_17' tabindex='-1'>17<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #17 content: <\/span><i>See Pelosi\u2019s Stock Trades<\/i>, <i>supra <\/i>note 16.\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup><span class=\"Apple-converted-space\">\u00a0<\/span><\/sup><\/span><\/em><\/p>\n<p class=\"p2\"><em>Of course, Speaker Pelosi is not the only congressperson suspected of insider trading.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_18' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_18'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>18<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_18' class='visually_hide'>Open footnote #18<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_18' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_18' tabindex='-1'>18<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #18 content: <\/span><i>See, e.g.<\/i>, Kenny Stancil &amp; Common Dreams, <i>Amid Push for Ban, Lawmakers Traded $355 Million of Stock in 2021<\/i>, ALTERNET (Feb. 1, 2022), https:\/\/www.alternet.org\/2022\/02\/insider-trading-congress\/ [https:\/\/perma.cc\/4X5RY3HD].\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Senators Richard Burr, Diane Feinstein, and Jim Inhofe, as well as then-Senator Kelly Loeffler, have come under scrutiny over suspicious trades as the threat of the COVID-19 pandemic emerged in 2020.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_19' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_19'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>19<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_19' class='visually_hide'>Open footnote #19<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_19' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_19' tabindex='-1'>19<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #19 content: <\/span><i>See <\/i>Jack Kelly, <i>Senators Accused of Insider Trading, Dumping Stocks After Coronavirus Briefing<\/i>, FORBES (Mar. 20, 2020), https:\/\/www.forbes.com\/sites\/jackkelly\/2020\/03\/20\/senators-accused-of-insider-tradingdumping-stocks-after-coronavirus-briefings\/?sh=488905914a45.\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Each of these Senators sold off significant stock holdings shortly after participating in a confidential briefing \u201cabout the coronavirus and the massive impact it will have upon the economy, jobs and the stock market.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_20' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_20'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>20<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_20' class='visually_hide'>Open footnote #20<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_20' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_20' tabindex='-1'>20<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #20 content: <\/span><em>Id<\/em>.\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Though it is hard to quantify the impact of congressional insider trading on the markets, as the Supreme Court explained in United States v. O\u2019Hagan, \u201cinvestors likely would hesitate to venture their capital in a market where [insider] trading . . . is unchecked by law.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_21' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_21'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>21<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_21' class='visually_hide'>Open footnote #21<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_21' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_21' tabindex='-1'>21<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #21 content: <\/span>521 U.S. 642, 658 (1997).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>So what, if anything, is to be done? Just as they did in 2011,\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_22' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_22'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>22<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_22' class='visually_hide'>Open footnote #22<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_22' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_22' tabindex='-1'>22<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #22 content: <\/span><i>See <\/i>Jeanne L. Schroeder, <i>Taking Stock: Insider and Outsider Trading by Congress<\/i>, 5 WM. &amp; MARY BUS. L. REV. 159, 165 (2014) (noting that the STOCK Act was adopted with overwhelming bipartisan support in 2012 after \u201c<i>The Wall Street Journal <\/i>and the television magazine <i>60 Minutes <\/i>ran expos\u00e9s of congressional trading\u201d in 2011).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>members of Congress on both sides of the aisle are rushing to get out in front of the issue. And a number of bills have garnered bipartisan support.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_23' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_23'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>23<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_23' class='visually_hide'>Open footnote #23<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_23' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_23' tabindex='-1'>23<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #23 content: <\/span><i>See infra <\/i>Part II; <i>see also <\/i>Stephanie Hughes, <i>Congress Looks to Ban Lawmakers from Trading Individual Stocks<\/i>, MARKETPLACE (Feb. 8, 2022), https:\/\/www.marketplace.org\/2022\/02\/08\/congress-looks-to-ban-lawmakers-from-tradingindividual-stocks\/ [https:\/\/perma.cc\/56A9-X6XB].\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Many of these bills propose a broad prophylactic of proscribing members of Congress from trading in individual stocks while in office.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_24' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_24'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>24<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_24' class='visually_hide'>Open footnote #24<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_24' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_24' tabindex='-1'>24<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #24 content: <\/span><i>See, e.g.<\/i>, Ban Conflicted Trading Act, H.R. 1579, 117th Cong. (2021).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>Some bills would go so far as proscribing trades by spouses and dependent children as well.\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_25' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_25'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>25<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_25' class='visually_hide'>Open footnote #25<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_25' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_25' tabindex='-1'>25<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #25 content: <\/span><i>See <\/i>TRUST in Congress Act, H.R. 336, 117th Cong. (2021); Ban Congressional Stock Trading Act, S. 3494, 117th Cong. (2022).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup><span class=\"Apple-converted-space\">\u00a0<\/span><\/sup><\/span><\/em><\/p>\n<p class=\"p2\"><em>But while momentum is building for broad, new restrictions on congressional stock trading, some representatives continue to express concerns. For example, Speaker Pelosi openly resisted calls for an outright ban on trading in individual stocks by members of Congress, arguing, for example, that \u201c[w]e\u2019re a free-market economy\u201d and members of Congress \u201cshould be able to participate in that.\u201d\n\t\t<span class='js-footnote footnote'>\n\t\t\t<button type='button' aria-controls='abstract_footnote_6328_26' class='footnote_inline_btn js-footnote-toggle-btn' aria-describedby='footnote_btn_text_abstract_footnote_6328_26'>\n\t\t\t\t<sup class='footnote_inline_btn_number'>26<\/sup>\n\t\t\t\t<span id='footnote_btn_text_abstract_footnote_6328_26' class='visually_hide'>Open footnote #26<\/span>\n\t\t\t<\/button>\n\t\n\t\t\t<cite id='abstract_footnote_6328_26' class='footnote_content_cite js-footnote-content'>\n\t\t\t\t<span class='footnote_content_wrap'>\n\t\t\t\t\t<button type='button' class='footnote_content_number js-footnote-toggle-btn' aria-controls='abstract_footnote_6328_26' tabindex='-1'>26<\/button>\n\t\n\t\t\t\t\t<span class='footnote_content_wrap_inner'>\n\t\t\t\t\t\t<span class='footnote_content'>\n\t\t\t\t\t\t\t<span class='visually_hide'>Footnote #26 content: <\/span><i>See <\/i>Bote, <i>supra <\/i>note 16 (quoting Speaker Nancy Pelosi).\u00a0\n\n\t\t\t\t\t\t<\/span>\n\t\n\t\t\t\t\t\t\n\t\n\t\t\t\t\t\t<span class='footnote_close_btn_wrap'>\n\t\t\t\t\t\t\t<button type='button' class='footnote_close_btn js-footnote-close-btn' aria-label='Back to content'>close<\/button>\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/cite>\n\t\t<\/span>\n\t<span class=\"s1\"><sup>\u00a0<\/sup><\/span>This Article counters such arguments and defends a broad prophylactic against congressional insider trading in individual stocks as a means of preserving market integrity and restoring the public\u2019s trust in the legislative branch. Part I offers a brief summary of the current state of insider trading laws, with a special focus on their application to Congress. Part II surveys some of the proposed insider trading reform bills under consideration by the 117th Congress. Part III argues that, given congresspersons\u2019 unique role vis-\u00e0-vis securities markets, a broad prophylactic against congressional insider trading is both justified and needed.<span class=\"Apple-converted-space\">\u00a0<\/span><\/em><\/p>\n<p>Continue reading <strong><em><a href=\"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-content\/uploads\/sites\/26\/2022\/06\/Anderson-Time-for-a-Broad-Prophylactic.pdf\">Time for a Broad Prophylactic Against Congressional Insider Trading.<\/a><\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0In 2011, Peter Schweizer published a book, Throw Them All Out, in which he exposes some questionable means by which politicians manage to increase their personal wealth fifty percent faster [&hellip;]<\/p>\n","protected":false},"author":8284,"featured_media":0,"parent":6327,"menu_order":7,"comment_status":"closed","ping_status":"closed","template":"abstract.php","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":"","_tec_slr_enabled":"","_tec_slr_layout":""},"class_list":["post-6328","page","type-page","status-publish","hentry"],"acf":[],"ticketed":false,"_links":{"self":[{"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/pages\/6328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/users\/8284"}],"replies":[{"embeddable":true,"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/comments?post=6328"}],"version-history":[{"count":9,"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/pages\/6328\/revisions"}],"predecessor-version":[{"id":6524,"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/pages\/6328\/revisions\/6524"}],"up":[{"embeddable":true,"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/pages\/6327"}],"wp:attachment":[{"href":"https:\/\/www.law.georgetown.edu\/georgetown-law-journal\/wp-json\/wp\/v2\/media?parent=6328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}