The Senate has passed legislation affirming that members of Congress and their staffs are subject to insider-trading standards, and that includes a provision extending coverage to federal employees.
The bill, S-2038, explicitly prohibits federal employees from using for personal benefit any nonpublic information derived from their positions as federal employees, or gained from performance of their duties.
Specifically, it applies to feds the insider trading prohibitions of the Securities Exchange Act, subjecting them to a range of punitive, disciplinary, and other remedial actions if found guilty of trading on insider knowledge.
