Bill > HR2655

This bill amends the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by those who possess material, nonpublic information. Specifically, it makes it unlawful for any person to purchase, sell, or enter into a security, security-based swap, or security-based swap agreement while aware of material, nonpublic information that could reasonably be expected to affect the market price of such security or swap. It also prohibits the wrongful communication of such material, nonpublic information to others who may then trade on it. The bill outlines the legal standard for what constitutes "wrongful" acquisition or use of such information, including through theft, misrepresentation, or breach of a duty of trust. It provides some affirmative defenses, such as for trading directed by another person or transactions compliant with Rule 10b-5-1. The bill also requires the Securities and Exchange Commission to review and potentially modify Rule 10b-5-1 in light of these changes.

Business and Industry, Housing and Urban Affairs

https://www.congress.gov/bill/117th-congress/house-bill/2655/all-info