U.S. Congress Advances Bill Against Insider Trading Risks

The U.S. Congress has initiated the review of bill S.1498, the “Honest Act,” spearheaded by Senator Josh Hawley, targeting ethical standards in financial trading by public officials.

This legislation seeks to address longstanding concerns over potential conflicts of interest, enhancing transparency in government by restricting trading of specific financial assets by key public figures.

Comprehensive Insider Trading Ban Gains Bipartisan Support

The “Honest Act to Stop All Ownership and Unethical Stock Trading,” introduced in April 2025 by Senator Josh Hawley, seeks to address potential conflicts of interest by prohibiting key government officials from trading certain financial assets that may compromise ethical standards. The bill has secured bipartisan support, evident with notable cosponsors joining during its legislative journey, and it passed the Senate Homeland Security and Governmental Affairs Committee with an amendment on July 30, 2025.

Key changes under the bill include prohibiting the President, Vice President, members of Congress, and select federal officials from holding or profiting from stocks, derivatives, or futures trading. However, government bonds and diversified funds are exempt. The legislation mandates asset disposal within a set period and insists on annual compliance reports. Violations could result in substantial penalties, enhancing lawful enforcement.

The market and political reactions have been mixed, as highlighted by some ethics watchdogs expressing support for heightened transparency, while critics argue about possible overreach affecting individuals’ financial autonomy. However, no formal statements from major cryptocurrency figures or relevant agencies have yet been identified, given the bill’s primary focus on traditional securities.

Bill’s Implications for Traditional and Digital Asset Regulation

Did you know? The STOCK Act of 2012 was an earlier legislative effort aimed at increasing transparency in Congress trading activities, setting the stage for these recent developments.

Bitcoin, according to CoinMarketCap, currently holds a market cap of $1.80 trillion, with a recent price of $90,351.96, reflecting a 24-hour trading volume of $80.60 billion. The digital currency displayed a 1.04% increase over the past week but saw a notable decline over the last 90 days.

Insights from the Coincu research team indicate that while the bill does not directly affect cryptocurrencies, nearly 59% market dominance by Bitcoin means any shift in regulatory focus could impact perceptions and trading patterns, especially if similar regulatory principles extend into the digital asset space. The emphasis on transparency aligns with the broader trend in financial systems worldwide seeking to curb unethical practices.