Using Political Privilege to Profit: Insider Trading in the Government and S. 2463's Alleged Attempt to Stop It

Authors

Allison K. DoolingFollow

Publication Date

Winter 12-1-2025

Abstract

Insider trading is generally illegal within the United States. However, members of Congress are notorious for regularly engaging in stock trades based on government information that mirrors insider trading. In 2023, Senators Gillibrand and Hawley proposed a bill, unlike any such proposed before, to put an ultimate ban on government insider trading: the “Ban Stock Trading for Government Officials Act” or S. 2463. On its face, S. 2463 appears to address the criticisms surrounding government insider trading. It not only increases regulation and reporting standards but also bans government officials, their spouses, and their dependents from owning any stock during their term of service. Upon deeper inspection, though, it is clear that the Bill is a farce to placate the American public. S. 2463 contains a loophole that allows officials to trade ETFs and mutual funds and enables them to continue insider trading at the market segment level.

Recommended Citation

Dooling, Allison K. (2025) "Using Political Privilege to Profit: Insider Trading in the Government and S. 2463's Alleged Attempt to Stop It," Mississippi College Law Review: Vol. 43: Iss. 1, Article 9.
Available at: https://dc.law.mc.edu/lawreview/vol43/iss1/9