Stop Corrupt Trading Act
Sponsored By: Senator Padilla, Alex [D-CA]
In Committee
Summary
Stops trading on nonpublic information tied to the President or Vice President. This bill would create criminal and civil rules that bar Presidents, Vice Presidents, and entities connected to them from selling or exchanging nonpublic information and bar others from buying that information for financial gain.
Show full summary
- Presidents, Vice Presidents, and related entities would be prohibited from selling or exchanging nonpublic information for financial benefit. Violations by a covered person could carry a fine up to double the transaction value and imprisonment up to 5 years, plus forfeiture of proceeds.
- Traders and counterparties who buy or sell such nonpublic information for financial gain would face civil and criminal exposure. The Attorney General could seek disgorgement and a civil penalty up to the greater of $250,000 or 3 times the gain for each violation, using a preponderance of the evidence standard.
- The rule targets entities controlled by or at least 5% owned by a covered person and creates joint liability for counterparties who knowingly provide value. The Director of the Office of Government Ethics must refer credible evidence to the Attorney General and notify House and Senate Judiciary Committees.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New ban on trading by top officials
If enacted, this bill would ban the President, Vice President, and related companies from selling or trading nonpublic official information. The ban would apply when transactions are for financial benefit. "Covered entity" would include companies they control or in which they own at least 5 percent. "Nonpublic information" would include FOIA-exempt material and official statements shared only via an API. The bill would create criminal penalties: fines up to twice the transaction value and up to 5 years in prison for covered persons or covered entities. It would also let the Attorney General sue for disgorgement, civil penalties (up to $250,000 or three times the gain per violation), injunctions, and constructive trusts. Courts would be required to forfeit property made from the crime. Lawsuits must start within six years, but the six-year clock would pause while a relevant official is President or Vice President.
Sponsors & CoSponsors
Sponsor
Padilla, Alex [D-CA]
CA • D
Cosponsors
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 8/3/2026
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Sponsored 8/3/2026
Sen. Peters, Gary C. [D-MI]
MI • D
Sponsored 8/3/2026
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 8/4/2026
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 8/6/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov