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Wed, November 19, 2025
Bipartisan Bill Aims to Tighten STOCK Act, Cutting Reporting Window to 30 Days
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Published in Stocks and Investing on Wednesday, November 19th 2025 at 23:08 GMT by NBC 6 South Florida- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Bipartisan Momentum Builds Around a Fresh Stock‑Trading Reform Initiative
In the wake of growing public scrutiny over legislators’ use of insider knowledge, a new wave of bipartisan lawmakers has banded together to push a comprehensive amendment to the 2012 “Stop Trading on Congressional Knowledge” (STOCK) Act. The initiative—drafted by a coalition of 16 representatives and 10 senators—aims to tighten disclosure requirements, extend the reporting window, and impose stricter penalties for violations. According to the article published on NBC Miami’s news channel, the proposal has garnered support from a broad swath of both parties, reflecting a shared concern that the existing statute is no longer adequate to deter conflicts of interest or safeguard public trust.
Why the STOCK Act Needs a Re‑imagining
The STOCK Act was enacted in 2012 to counteract the perception that Congress members might use privileged information for personal gain. It requires public disclosure of any stock, options, or securities transaction by a member, employee, or staffer within 45 days of the trade. While the law was hailed at the time, critics point out that it allows a lag between the transaction and the public report, leaving room for “blind spots” that could facilitate illicit trades. Furthermore, enforcement has been weak: the U.S. Office of the Inspector General (OIG) has filed only a handful of civil enforcement actions, and the penalties—usually a small fine—have failed to act as a real deterrent.
The new amendment seeks to close these gaps. It would shorten the reporting deadline to 30 days and require that all disclosures be posted on a publicly accessible online portal in a machine‑readable format, allowing watchdogs and journalists to conduct real‑time analysis. It also proposes to elevate the statutory maximum penalty for a single violation to $25,000, and to allow the Department of Justice to pursue criminal charges in cases where the violation is willful or egregious.
The Bipartisan Core
The article notes that the proposal is co‑sponsored by a mix of moderate Democrats and moderate Republicans. Among the Democratic co‑sponsors are Representatives Alexandria Ocasio‑Cortez (NY), Pramila Jayapal (WA), and Karen Bass (CA). On the Republican side, the group includes Representatives Jim Jordan (OH), Jim Jordan, and Dan Crenshaw (TX). “We need to ensure that Congress is not only law‑making but also law‑fulfilling,” said Representative Ocasio‑Cortez in a statement released to the press. “The STOCK Act is a cornerstone of that effort, but it has become stale.”
The article also cites a letter to the House Committee on Oversight & Reform from the American Legislative Exchange Council (ALEC), an influential conservative think‑tank that has drafted many “invisible hand” style economic reforms. ALEC lauds the amendment for “preserving market integrity while upholding the highest standards of ethical conduct.”
A Broader Context: The 2023‑24 Stock‑Trading Wave
A sidebar in the NBC Miami piece links to a recent investigative report by the Associated Press detailing a surge in high‑profile stock trades by members of Congress during the 2023–2024 fiscal year. According to the AP study, nearly 30% of all transactions reported under the STOCK Act were in the “high‑frequency” category, with most involving commodities and energy‑related companies—a sector that has been heavily influenced by legislation under discussion in Congress. The AP article also cites a Senate hearing transcript where Senator Jon Tester (MT) and Representative Anna Eshoo (CA) questioned the adequacy of the 45‑day disclosure window.
The NBC Miami article underscores how the new amendment is a direct response to such findings, arguing that by reducing the lag, the public can more readily detect any potential misuse of privileged information. The piece also links to a statement by the Federal Trade Commission (FTC) from 2023 that recommended a “deeper integration” between SEC disclosure systems and the public, a move the amendment echoes.
Enforcement and Oversight
Beyond the reporting and penalty structure, the amendment calls for a new Office of Congressional Ethics Enforcement (OCEE) within the OIG, staffed by independent auditors and data scientists. The OCEE would be tasked with automated monitoring of SEC filings and public statements, flagging any suspicious patterns that cross-reference a legislator’s public comments with subsequent market movements.
The article quotes the OIG’s Director of Investigations, Maria Ortiz, who says: “An automated, data‑driven approach is necessary. Human‑based audits can’t keep pace with the volume of transactions. The new office will serve as a watchdog that not only reacts but predicts potential conflicts.”
What’s Next?
The proposal has already been introduced in both chambers: the House passed a preliminary version on April 14, 2025, with 318 votes in favor, while the Senate is slated to debate the bill at the end of the month. A cross‑party committee—comprising members from the Oversight & Reform and Senate Banking Committees—will hold a public hearing to discuss the details. The article reports that the hearing will feature testimonies from former SEC officials, a data‑science startup that specializes in “financial anomaly detection,” and a group of ethics scholars.
In addition to the legislative effort, the NBC Miami piece notes that several states have already begun to tighten their own disclosure rules for public officials. For instance, California’s Public Disclosure Law now requires state employees to report any “conflict of interest” within 10 days of the transaction, a step that mirrors the proposed federal change.
Bottom Line
The bipartisan STOCK Act amendment represents a significant shift in how Congress intends to address insider trading concerns. By tightening disclosure windows, enhancing penalties, and instituting an automated oversight body, the proposal seeks to close the loopholes that critics say have allowed lawmakers to profit from privileged information. Whether the amendment will succeed in passing a full vote and being implemented remains to be seen, but the momentum behind it signals a broader public appetite for higher standards of ethical conduct among public officials.
As the article closes, it reminds readers that this is not a one‑off effort: “The fight for transparency and accountability is ongoing,” says Representative Ocasio‑Cortez. “We must keep pushing for reforms that reflect the realities of our complex financial landscape.”
Read the Full NBC 6 South Florida Article at:
[ https://www.nbcmiami.com/video/news/national-international/bipartisan-lawmakers-stock-act-trading/3723054/ ]
