Washington lawmakers are considering a bill to curb insider trading among the House and Senate. Currently if a federal lawmaker learns an upcoming bill will grant a company a large government contract, which could boost that company’s stock, he or she is free to buy that stock ahead of the bill’s public introduction.
But the bi-partisan STOCK act proposal aims to stop such insider information by requiring the legislator to report any stock, bond, or commodities future transaction of more than $1,000 within 90 days.
During a House Financial Services Committee hearing Tuesday, Rep. Sean Duffy (R-WI) asked the bill’s co-sponsor Rep. Tim Walz (D-MN), why not reduce that time to three days, saying “things move quickly.” Walz responded to the panel, “You’re preaching to the choir here on this.”
Walz was among the early backers of the bill which has seen little traction in multiple sessions of Congress. A recent 60 Minutes report is being credited in renewing interest in the reform. It’s lead to 180 House sponsors with Ron Kind the only Wisconsinite to have signed on. A Senate version has attracted 20 sponsors.