Woofun AI reports that the Stop Insider Trading Act was approved by the US House of Representatives, a legislative move spearheaded by Representative Bryan Steil of Wisconsin to curb congressional profiteering. This measure aims to prohibit members of Congress, along with their spouses and dependent children, from acquiring newly issued publicly traded stocks. The legislation represents a targeted effort to eliminate the ability of lawmakers to profit from non-public information while in office.

The bill secured passage on Wednesday with a 232-198 vote, subsequently transferring it to the Senate for further deliberation. Its scope is explicitly limited to members of Congress, deliberately excluding the president, vice president, and their respective families from the trading restrictions. This narrow focus distinguishes the current proposal from broader ethical reform efforts that might encompass the executive branch.

Woofun AI data shows the bill mandates a seven days’ notice period before any existing stock sales can be executed, paired with strict penalties for violations. Despite these measures, Senator Elizabeth Warren criticized the legislation on Thursday, arguing that it contains major loopholes by allowing lawmakers to retain and sell pre-existing assets. Democrats contend that this exemption fails to adequately address potential conflicts of interest, with Warren asserting the bill "won't fly in the Senate."

Structurally, the Stop Insider Trading Act differs significantly from the Digital Asset Market Clarity Act currently under Senate consideration. While the stock ban targets only congressional members, the CLARITY bill proposes barring all US public officials from issuing or sponsoring cryptocurrency tokens until 2029. This divergence highlights a fragmented regulatory approach where traditional equity trading faces immediate scrutiny while digital asset involvement remains subject to separate, future-oriented constraints.

The legislative push follows Steil’s earlier introduction of the Stop Lawmakers from Predicting Act in June, which aimed to restrict betting on prediction market platforms like Kalshi and Polymarket. That proposal sought to prevent public officials and their families from wagering on political outcomes and policy issues. The momentum for such bans intensified after high-profile incidents involving insider knowledge on these platforms drew public attention.

Notably, a soldier allegedly profited over $400,000 by betting on the removal of Venezuela President Nicolás Maduro by US forces in January. Similarly, Donald Trump’s teleprompter operator reportedly earned more than $100,000 from Kalshi contracts tied to presidential speech content. Both the stock and prediction market bills propose violators pay a $2,000 fee or 10% of the prohibited bet value, signaling a consistent penalty framework across different speculative activities.