Should congress be able to practice insider trading?

Read
literally, the bill prohibits insider trading by members of Congress
only if the member not only personally trades on the basis of such
information but also tips the information to "another person" with
intent to aid that other person to use the information to trade for
personal profit.



Suppose, for example, a Member of Congress learns nonpublic information
at a confidential closed door hearing. The Member uses that information
to trade for personal profit. But he never assists "another person,
directly or indirectly, to use the information to enter into, or offer
to buy or sell the securities of such publicly traded company based on
such information." Read literally, because it requires "the person" who
is prohibited from insider trading to "assist another person,"
Gillabrand's version of the STOCK Act would not prohibit such trading.



Worse yet, because Gillibrand's version of the STOCK Act requires "the
person" who is prohibited from insider trading to "assist another
person," it would not apply in the converse situation in which somebody
gives a member of Congress information with intent to assist the member
to trade!