The STOCK Act prohibits members and employees of Congress and the Executive Branch from breaching their “duty . . . with respect to material, nonpublic information derived from [their] position,” to Congress, the US government, and the American people.1 The STOCK Act effectively makes clear that the insider trading prohibitions of the Section 10(b) and Rule 10b-5 apply to government employees. The STOCK Act only applies, however, to information obtained in connection with the member’s or employee’s official capacity as a government employee.
As of October 2018, there have been no prosecutions under the STOCK Act since it was enacted on April 4, 2012.
1 The Stop Trading on Congressional Knowledge Act, Pub. L. No. 112–105, S. 2038, 126 Stat. 298 (2012).