The House Financial Services Committee passed legislation on Thursday to protect whistleblowers from employer retaliation as well as create a “clear definition” of what constitutes insider trading under securities laws.
The Whistleblower Protection Reform Act, H.R. 2515, which unanimously passed, amends the definition of whistleblower under the Securities and Exchange Act of 1934 to clarify that whistleblowers who report alleged misconduct internally to their employers—but not to the Securities and Exchange Commission—are protected by Dodd-Frank’s anti-retaliation provisions.
H.R. 2534, the Insider Trading Prohibition Act, meanwhile, creates “a codified, consistent standard” of what constitutes insider trading.
The committee also passed a resolution to create a Financial Technology, or fintech, task force to be chaired by Rep. Stephen Lynch, D-Massachusetts, as well as an Artificial Intelligence task force, to be chaired by Rep. Bill Foster, D-Illinois.
“As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses,” said House Financial Services Committee Chairwoman Maxine Waters, D-Calif.
“The new task forces on financial technology and artificial intelligence, under the leadership of Congressman Lynch and Congressman Foster, respectively, will help Congress to stay on top of new developments in these areas so that we are well-positioned to make policy.”