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On Tuesday, the Insider Trading Prohibition Act passed the house by a pretty big bipartisan majority 350 to 75. Currently, there is no explicit statutory prohibition on insider trading and prosecutors have relied on general fraud statutes to pursue charges. The bill would add to the Exchange Act a new Section 16A that would define insider trading and make it illegal. In an interview with
Reuters, the bill’s sponsor, Jim Himes, said that “the legislation does not expand insider trading law but simplifies and codifies the law as articulated by courts through decades of opinions.” A version of the bill passed the House in 2019 by an even stronger vote, but never made it through the Republican-led Senate. No,w with Democrats in charge, will the bill be passed and signed into law?