The US House of Representatives has passed a bill that would purportedly prohibit members of Congress, their spouses and dependent children from purchasing publicly traded stocks.

Lawmakers voted 232 to 198 in the House on Wednesday approved the Stop Insider Trading Act, sending the bill to the Senate for consideration. Representative Bryan Steil, a Wisconsin state legislator who sponsored the bill, he said that the legislation “ensures that no legislator can profit from confidential information” and “introduces tough penalties for any violations.”

“We haven’t had a bill in the House on this subject with this possibility before,” the chamber’s Steil said Wednesday, describing the penalties:

“A fine of $2,000 or 10% of the transaction, as well as forfeiture of profits. Violators would forfeit any profits made by failing to comply with these regulations.”

Some Democrats say the bill doesn’t go far enough to address potential conflicts of interest because it allows lawmakers to keep and sell shares they already own. According to Steil, the bill would require members of Congress to give seven days’ notice before selling stock if they already own the asset, which would discourage insider trading.

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“[The] the law has sedate loopholes.” he said Sen. Elizabeth Warren on Thursday. “Legislators can continue to own and sell stock, so this will not solve the problem. I will not run for the Senate. Members of Congress should not own, buy or sell stock.”

The Stop Insider Trading Act moved to the U.S. Senate for consideration on Thursday after passing the House of Representatives.

Unlike the proposed text of the Digital Assets Market Transparency Act, a cryptocurrency market structure bill being considered in the Senate, Steil’s bill was limited to investment restrictions for members of Congress, not the president or vice president and their families. Under the text proposed by CLARITY, all U.S. public officials could be banned from issuing or sponsoring tokens by 2029.

The calculus of prediction markets is also being considered

The House’s approval of the anti-insider trading bill followed Steil’s sponsorship of a similar bill targeting members of Congress who trade on prediction market platforms such as Kalshi and Polymarket. A Wisconsin lawmaker introduced the Stop Lawmakers from Predicting Act in June to prevent certain public officials, their spouses and children from “placing bets on public policy issues and political outcomes.”

Prediction markets gained public attention after an incident involving a soldier who allegedly bet more than $400,000 on Venezuelan President Nicolás Maduro, who was ousted by U.S. forces in January. Donald Trump’s teleprompter operator also reportedly placed over $100,000 in bets on Kalshi event-related contracts linked to words and phrases from the president’s speeches.

Similar to the Stock Trading Act, the prediction markets regulations stipulated that violators would pay a fee of $2,000 or 10% of the value of prohibited bets on the platforms.

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