23 March 2012
On Thursday, March 22, the Senate cleared the House version of the Stop Trading on Congressional Knowledge Act (STOCK Act) by unanimous consent. The legislation will now head to the President’s desk to be signed into law. The legislation was originally introduced by Senator Joseph Lieberman (I-CT) following a CBS 60 Minutes piece alleging that Congressional Members were making money by trading stocks using non-public information. It explicitly prohibits Members of Congress, the President, and other federal employees from trading stocks based on non-public Congressional information. In our view, this new law will very likely have a chilling effect on the ordinary exchange and collection of information about Congressional and Executive Branch activities and actions.