Bloomberg opinion columnist Ann Woolner opines that:
Your senator learns that a much- maligned weapons system now has enough votes for funding. Before the news gets to a reporter, he buys shares in the arms manufacturer for a quick, handsome profit.
What’s wrong with this picture? Nothing, according to the law. Nor would it be illegal for him to tip someone else, say, his largest campaign contributor.
Laws that criminalize insider trading cover corporate insiders and those they tip, but not specifically Congress. And while scholars differ on whether existing law could be applied on Capitol Hill, it hasn’t been.
Scholars who assert that insider trading laws don't apply on Capitol Hill are wrong. As I demonstrate in Insider Trading Inside the Beltway, while it is true that, under current law, it is unlikely that Members of Congress can be held liable for insider trading, Congressional staffers and other federal government employees can be held liable for trading on the basis of material nonpublic information.
