Three bills recently introduced in Congress could make life easier for the SEC and its enforcement program—and have a reasonable chance of making it to the president’s desk. If passed, insider trading, whistleblowers, and statutes of limitations for disgorgement may find greater clarity from the 116th Congress.

The Kokesh Problem and the Limitations Period

In 2017, the Supreme Court held in Kokesh v. SEC that SEC disgorgement operates as a penalty under 28 U.S.C. §2462, and accordingly, any claim for disgorgement in an SEC enforcement action must be commenced within five years of the date the claim accrued. The...