From The Motley Fool:
The bill before the Senate would outlaw insiders from trading or tipping in exchange for a "direct or indirect personal benefit." It also states prosecutors don't have to prove a trader knew the info was exchanged for benefit, only that they recklessly ignored its illicit source, thus negating the Newman ruling.
Potential Side Effects: Extensive research is routine for stock traders, and many insider trading cases come down to fuzzy scenarios of analysts seeking an "edge." Distinguished UCLA financial law professor Stephen Bainbridge wrote the proposed legislation could "expand the scope of insider trading in undesirable ways," leading to apprehension among stockbrokers attempting to do legitimate research.
The paper to which he refers is: Bainbridge, Stephen Mark, A Critique of the Insider Trading Prohibition Act of 2021 (June 17, 2021). UCLA School of Law, Law-Econ Research Paper No. 21-08, Available at SSRN: https://ssrn.com/abstract=3869222
