Senate passes bill on insider trading, sends measure to Obama

The Senate on Thursday passed legislation barring lawmakers from using insider information for personal profit, sending the bill to the White House.

The Stop Trading on Congressional Knowledge (STOCK) Act already approved by the House passed the upper chamber easily by a vote of 96-3.

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The Senate action circumvents a thorny amendment sponsored by Sen. Chuck GrassleyCharles (Chuck) Ernest Grassley'Mike Pounce' trends on Twitter after Trump slip at GOP retreat Cruz warns GOP support for expanded background checks could help elect Warren president Lawmakers applaud Trump's ban on flavored e-cigarettes MORE (R-Iowa) requiring political intelligence operatives to regularly report their activity. The Senate adopted the Grassley proposal by a vote of 60-39 in February, but the GOP-controlled House opposed the Grassley's language and did not include it in its version.

Instead of holding a conference between Senate and House negotiators to discuss the differences, Senate Majority Leader Harry ReidHarry Mason ReidHarry Reid warns Trump 'can be reelected' Homeland Security Republican accuses Navy of withholding UFO info Poll: 47 percent back limits on Senate filibuster MORE (D-Nev.) opted to take up the House bill.

The Grassley language had created unusual political bedfellows.

House Republican Whip Eric CantorEric Ivan CantorEmbattled Juul seeks allies in Washington GOP faces tough battle to become 'party of health care' 737 crisis tests Boeing's clout in Washington MORE (R-Va.) opposed the language and did not include it in the House bill that passed overwhelmingly, 417-2.

Reid and his leadership team, along with Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSupreme Court comes to Trump's aid on immigration GOP group's ad calls on Graham to push for election security: 'Are you still trying?' Harris keeps up 'little dude' attack on Trump after debate MORE (R-Ky.), voted against the Grassley amendment in the Senate, but leading Democrats including Minority Leader Nancy Pelosi (Calif.) supported it in the House.

Grassley’s language would have dramatically expanded the disclosure of lobbying activities by requiring specialists who glean valuable information from Capitol Hill to register and report their activities after making even one contact to gather political intelligence. Hedge funds and other money managers pay top dollar for the information, which can be used to make lucrative trades.

Grassley voted against final passage of the STOCK Act in the Senate along with GOP Sens. Richard BurrRichard Mauze BurrLawmakers applaud Trump's ban on flavored e-cigarettes Trump to hold campaign rally in North Carolina day before special House election Hoekstra emerges as favorite for top intelligence post MORE (N.C.) and Tom CoburnThomas (Tom) Allen CoburnThe Hill's Morning Report — Presented by PhRMA — Worries grow about political violence as midterms approach President Trump’s war on federal waste American patients face too many hurdles in regard to health-care access MORE (Okla.).

Supporters of the bill hailed the measure, which they said could restore public confidence in Congress.

“We passed a strong bill with teeth that will clearly and expressly make it illegal for members of Congress, their staff and their families to gain personal profits from nonpublic information gained through their service,” said Sen. Kirsten GillibrandKirsten GillibrandAt debate, Warren and Buttigieg tap idealism of Obama, FDR Trump court pick sparks frustration for refusing to answer questions Klobuchar, Buttigieg find themselves accidentally flying to debate together MORE (D-N.Y.), a sponsor of the legislation.

“When President Obama signs the STOCK Act, we will have begun to restore some of the public’s faith in Washington,” she added.

Lawmakers sometimes possess nonpublic information that can be worth millions of dollars if known in advance by a well-connected trader.

Reid said earlier this week that he would skip appointing conferees to negotiate differences between the Senate and House bills. Reid said that unnamed senators would have objected to proceeding to conference and it would have taken too much time to vote them down.

Insider trading surged to the top of the political agenda in recent months after a report by CBS’s “60 Minutes” alleged senior lawmakers had profited from the knowledge they accrued as congressional insiders.

The report raised questions about healthcare stocks House Speaker John BoehnerJohn Andrew BoehnerBoehner reveals portrait done by George W. Bush Meadows to be replaced by Biggs as Freedom Caucus leader Scaramucci compares Trump to Jonestown cult leader: 'It's like a hostage crisis inside the White House' MORE (R-Ohio) bought during the 2010 healthcare reform debate once it became clear that the proposal of a government-run health insurance option would fail.

BoehnerJohn Andrew BoehnerBoehner reveals portrait done by George W. Bush Meadows to be replaced by Biggs as Freedom Caucus leader Scaramucci compares Trump to Jonestown cult leader: 'It's like a hostage crisis inside the White House' MORE said he does not personally manage his stock portfolio.

CBS also scrutinized Pelosi’s participation in an initial public stock offering from Visa. She and her husband bought stock in the company while a bill to limit fees charged by credit card companies was pending in the House.

A spokesman for Pelosi at the time dismissed the allegations as “a right-wing smear."