Congressmen almost certainly broke insider trading laws that didn’t/don’t exist. The laws exist in the private sector but not for Congress. Hmm…
Of course, the answer is NOT to create insider trading laws for Congress, but rather, the answer is to get rid of all insider trading laws. Forget about the fact that these kinds of laws are easily evaded (that’s why there are always borderline scandals every few years – the borderlines are easy to find). Just focus on the information involved. Somebody (an insider) has useful information about the future. Why should that be restricted? It’s wasteful. It’s very wasteful.
But “outsiders” don’t have that information, you say. True…if insiders can’t trade. But if insiders CAN trade on insider information then outsiders have it too – in the form of prices. Prices in most securities – the things that are covered by insider trading prohibitions – are so liquid that the market in them is exceptionally efficient. If you let insiders trade then outsiders quickly get that knowledge.
We should stop destroying knowledge – we should legalize insider trading of all sorts.