The STOCK Act: Enhancing Ethics in Government

The STOCK Act (Stop Trading on Congressional Knowledge Act) is a federal law that aims to prevent insider trading by Members of Congress and their staff. The law was enacted in 2012 to address concerns about the lack of transparency and accountability in government. In this blog post, we will explore the key provisions of the STOCK Act and its impact on government ethics.

Section 1: Definitions and Scope

The STOCK Act defines a "special government employee" as an individual who serves in the executive branch of the federal government, including the White House, Cabinet members, and their staff. The law applies to these individuals when they engage in certain activities, such as making investments or disclosing financial information.

• Investments made by special government employees
• Financial transactions involving special government employees
• Disclosure of financial information by special government employees

Section 2: Prohibitions and Penalties

The STOCK Act prohibits special government employees from engaging in certain activities, including:

"Any person who is a special government employee shall not, with respect to the stock or securities of any corporation— (1) make any investment in such stock or securities; and (2) disclose the identity of his interest in such stock or securities, if required by subsection (c) of section 202 of title 18, United States Code."

The law also imposes penalties for violating these prohibitions, including fines and imprisonment.

1. Fines up to $50,000
2. Imprisonment up to 5 years
3. Forfeiture of certain benefits

Section 3: Online Access to Financial Disclosure Statements

The STOCK Act requires the online disclosure of financial information by special government employees, including their investments and financial transactions.    "Any special government employee of the executive branch shall make publicly available on a public website— (A) any report filed under section 203 of title 18, United States Code; and    (B) any other information required to be disclosed under law."

• Online disclosure of financial information
• Public website for disclosures
• Timely updates on changes in financial status

Section 4: Applicability to Regular Government Employees

The STOCK Act applies to regular government employees who serve in the executive branch, including members of Congress and their staff.

1. Applicability to regular government employees
2. Prohibitions on investments and financial transactions
3. Disclosure requirements for financial information

Section 5: Conclusion

The STOCK Act is a critical step towards enhancing ethics in government. By promoting transparency and accountability, the law helps to prevent insider trading and maintain public trust in our democratic institutions.