Lawmakers in the House have passed a bill that would put a law against insider trading on the books.
The House passed the Insider Trading Prohibition Act (H.R. 2534) on a 410-13 vote Dec. 5. The legislation from Rep. Jim Himes (D-Conn.) would explicitly bar insiders from trading on non-public company information, codifying a ban that’s been developed through court decisions and anti-fraud laws.
The measure also would upend the U.S. Court of Appeals for the Second Circuit’s 2014 U.S. v. Newman decision, which made insider trading cases involving downstream tip recipients tougher for government lawyers. The court ...
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