Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Financial Planning > Behavioral Finance

House Passes Bill to Curb Insider Trading

By Melanie Waddell

X
Your article was successfully shared with the contacts you provided.

The full House passed Monday three bipartisan financial services bills — legislation to curb insider trading and two bills intended to fight the use of digital currencies to fund terrorism and drug trafficking.

The Promoting Transparent Standards for Corporate Insiders Act, H.R. 624, introduced by House Financial Services Committee Chairwoman Maxine Waters, D-Calif., and ranking member Patrick McHenry, R-N.C., requires the Securities and Exchange Commission to amend Rule 10b5-1 to ensure corporate insiders are unable to indirectly engage in illegal insider trading through changes to their trading plans.

McHenry said on the House Floor that H.R. 624 protects “mom and pop investors from the harmful effects of illegal insider trading and helps the SEC better understand how to prevent illicit activity.”

H.R. 56, the Financial Technology Protection Act, would “strengthen and expand efforts to deter terrorist and illicit abuses of financial technology through interagency coordination and research, and through collaboration with private institutions and citizens.”

The bill would establish an Independent Financial Technology Task Force to Combat Terrorism and Illicit Financing — which would include members from Treasury, the FBI, among other agencies — to provide rewards for information leading to convictions related to terrorist use of digital currencies.

The bill would also establish a Fintech Leadership in Innovation and Financial Intelligence Program to encourage the development of tools and programs to combat terrorist and illicit use of digital currencies.

“As stated in last year’s National Money Laundering Risk Assessment from the U.S. Department of the Treasury, many cryptocurrencies are being designed to make virtual currency transactions untraceable and are increasingly being used by bad actors,” said Waters in her Monday statements on the House floor.

H.R. 502, the FIND Trafficking Act, introduced by Rep. Juan Vargas, D-Calif., and Rep. Ann Wagner, R-MO, both members of the House Financial Services Committee, orders a study of the illicit uses of virtual currencies and marketplaces in drug trafficking and sex trafficking.

Melanie Waddell

@Think_MelanieW

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.