David Axelrod, left, and Hannah Welsh, right, of Ballard Spahr. Courtesy photos

Introduction

For years, public advocates have questioned securities trading by members of Congress, who have access to nonpublic information. In 2012, Congress passed the STOCK Act, which prohibits U.S. senators and representatives from trading on information they learn in their official capacities and requires frequent financial disclosures. But the STOCK Act has its fair share of issues. The reporting requirements allow weeks to pass before members of Congress must publicly disclose securities transactions, compliance with the act has been difficult to discern, and enforcement has been seemingly nonexistent. Indeed, no charges have ever been brought against a senator or representative under the act.

At the onset of the COVID-19 pandemic, however, reports of congressional lawmakers selling significant amounts of their stock came to light, raising legal and ethical concerns about the strength of and compliance with those insider trading laws. However, additional efforts to prohibit members of Congress from trading individual stocks have failed.

Now one company, Autopilot, is taking advantage of Congress members' advantage with a method for Joe Q. Public to trade like a politician.