S.Amdt. 6428

The amendment proposes adding a section called the Stop Insider Trading Act to the bill. Its purpose is to restrict the ability of Members of Congress and their immediate families to trade certain investments.

What it aims to change or add:

• Investment Restrictions: It prohibits "covered individuals"—which include Members of Congress, their spouses, and dependent children—from purchasing "covered investments," such as securities from publicly traded companies or related derivatives.

• Sale Requirements: If a covered individual wants to sell a covered investment, the Member of Congress must publicly disclose the intent to sell between 7 and 14 calendar days before the sale occurs.

• Exceptions: The rules do not apply to certain funds (like diversified or regional funds), small business interests, or specific trusts. Spouses or children are exempt if the trade is for another person or is part of their own job compensation.

• Penalties for Violations: Individuals who break these rules face fees. These fees are the greater of $2,000 or 10 percent of the transaction value, plus any net gain made from the investment. If a prohibited purchase was made, the investment must be sold.

• Payment Rules: Members of Congress cannot use official office accounts or campaign contributions to pay these fees.