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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 GrassleyChuck GrassleySenate confirms SEC chief Gensler to full five-year term Senate aims to pass anti-Asian hate crimes bill this week 'Real Housewives of the GOP' — Wannabe reality show narcissists commandeer the party 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 ReidThe Hill's Morning Report - Presented by Tax March - CDC in limbo on J&J vax verdict; Rep. Brady retiring Biden to tap Erika Moritsugu as new Asian American and Pacific Islander liaison White House races clock to beat GOP attacks MORE (D-Nev.) opted to take up the House bill.

The Grassley language had created unusual political bedfellows.

House Republican Whip Eric CantorEric Ivan CantorCantor: 'Level of craziness' in Washington has increased 'on both sides' White House says bills are bipartisan even if GOP doesn't vote for them Trump the X-factor in Virginia governor race 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 McConnellMcConnell vents over 'fake news' The Hill's 12:30 Report - Presented by Facebook - Tensions rise as U.S. waits for Derek Chauvin verdict Trump looking 'beyond seriously' at 2024 run 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 BurrSenate confirms SEC chief Gensler to full five-year term A proposal to tackle congressional inside trading: Invest in the US Former Gov. Pat McCrory enters GOP Senate race in North Carolina MORE (N.C.) and Tom CoburnThomas (Tom) Allen CoburnCongress brings back corrupt, costly, and inequitably earmarks Conservative group escalates earmarks war by infiltrating trainings Democrats step up hardball tactics in Supreme Court fight 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 GillibrandIntelligence leaders warn of threats from China, domestic terrorism Jon Stewart accuses VA of being 'an obstacle' to burn pits medical care Family policy that could appeal to the right and the left 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 BoehnerCantor: 'Level of craziness' in Washington has increased 'on both sides' Cheney on Trump going to GOP retreat in Florida: 'I haven't invited him' Republicans race for distance from 'America First Caucus' 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 BoehnerCantor: 'Level of craziness' in Washington has increased 'on both sides' Cheney on Trump going to GOP retreat in Florida: 'I haven't invited him' Republicans race for distance from 'America First Caucus' 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."