WASHINGTON, DC - Congressman Jim Himes (CT-4), a member of the House Financial Services Committee, issued the following statement on today’s decision by the United States Court of Appeals for the Second Circuit’s to not reconsider the December ruling in United States v. Newman.
“The Second Circuit's upholding of the Newman case makes urgent the need for Congress to provide a clear federal statute to supplant the sometimes restrictive and amorphous case law currently governing insider trading prosecutions. If a statutory prohibition on insider trading were to be developed, prosecutions would not need to hinge on matters like a personal benefit requirement and could instead be focused on the wrongful use of illegal inside information.
“To that end, I have recently introduced bipartisan legislation, the Insider Trading Prohibition Act, to explicitly define what constitutes insider trading, ensure bad actors are truly held accountable, protect legitimate investors and strengthen confidence and safety in our markets. Congress must act on this important legislation now to pass a clear federal statute prohibiting insider trading.”
Congressman Himes introduced the bipartisan Insider Trading Prohibition Act (HR 1625) on March 25. For more information on the legislation, click here.