The US Senate has passed a bill to limit insider trading, banning officials from investing in securities while in office

According to the information on the official website of the US Congress, the 119th Congress Bill S.1498, the Halt of Ownership and Unethical Stock Trading Act (HONEST Act), has been included in the Senate legislative agenda on December 10 and has entered the follow-up consideration stage. The bill was proposed by Republican Senator Josh Hawley in April 2025. It has been reviewed by the Senate Homeland Security and Governmental Affairs Committee and submitted in the form of amendments.
The core goal of the bill is to prevent insider trading and conflict of interest risks for government officials. It is proposed to prohibit members of Congress, the president, the vice president and some senior federal officials from holding or trading financial assets that may pose a conflict of interest, including stocks, derivatives, futures, etc., while establishing exemptions for Treasury bonds and widely diversified funds. The bill also requires relevant personnel to dispose of restricted assets within a specified period and make annual compliance disclosures. Violations will face penalties such as fines or forfeiture of earnings. The legislation is seen as an enhanced supplement to the existing STOCK Act, designed to improve government transparency and ethical standards, in response to long-standing public questions about congressmen's securities trading and potential insider trading issues.