Insider Trading Prohibition Act

S. 5320 would amend the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by individuals who possess material, nonpublic information — that is, insider trading. The bill's official text has not yet been published, so the specific mechanics of how the prohibition would work, what penalties or enforcement provisions it includes, and what exceptions or definitions it uses are not yet known.

Because the text isn't available, it's not yet possible to say precisely who would be covered or how their obligations would change. In general, legislation targeting insider trading and related communications tends to affect individuals with access to nonpublic corporate or market information — such as corporate officers, employees, or others in a position to trade on or share such information — but this bill's specific scope cannot be confirmed until its text is released.

The bill was introduced in the Senate on August 6, 2026, by Senator Jack Reed (D-RI), and its most recent action is that introduction. As a newly introduced bill, it would next need to be considered by the relevant Senate committee, which could hold hearings, amend it, or decide whether to advance it for a floor vote. Passage would also require House approval and the President's signature before it could become law.

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