In a significant move that could reshape how executives and insiders interact with financial markets, the U.S. Securities and Exchange Commission (SEC) on Tuesday unveiled a proposal to strengthen rules surrounding insider trading. The proposed changes aim to close longstanding loopholes and bolster transparency, as public concern over perceived unfair advantages and market manipulation continues to grow. The new proposal, which is now subject to a 60-day public comment period, includes stricter reporting requirements for company insiders, such as C-suite executives and board members. Specifically, the SEC seeks to shorten the time window for reporting insider trades from two business days to just one, and would mandate greater disclosure of trading plans under Rule 10b5-1, a provision designed to shield pre-scheduled trades from scrutiny. SEC Chair Gary Gensler stated, “We must ensure that our markets remain fair and efficient. These proposed updates are intended to close gaps that have, for too long, allowed insiders to benefit at the expense of everyday investors.” The timing of the announcement comes as several high-profile insider trading investigations have garnered attention, including probes into trades made by executives at major tech firms and pharmaceutical companies. Critics have argued that current regulations are outdated and allow insiders to exploit non-public information with minimal accountability. Market analysts say the regulatory shift, if finalized, could have wide-ranging implications. “This is likely to increase compliance costs for companies, and could lead to greater volatility in executive stock sales,” said Laura Chen, a senior policy analyst at Beacon Securities. “However, it may also restore investor confidence in the fairness of the marketplace.” Publicly traded companies may need to overhaul internal compliance procedures, while insiders could face increased scrutiny over their trading activity. Some legal experts warn that the tighter regulations may inadvertently discourage legitimate insider transactions, which can sometimes signal confidence in a company’s future. The proposal also includes measures to require companies to disclose insider trading policies in their annual filings and to allow for greater regulatory oversight of 10b5-1 plans, including a proposed cooling-off period before trades can be executed. If adopted, the changes would mark the most significant overhaul of insider trading rules in nearly two decades. Investors and corporate leaders alike will be watching closely as the rulemaking process unfolds.