Donald Trump speaks with Frank Zarb, former CEO of the Nasdaq Stock Market, before opening the Nasdaq Market Sept.

Democrats are exploring a new strategy to pressure Donald Trump over his business conflicts of interest, arguing that an insider trading law would make it a crime for him to profit on information he learns as president. The STOCK Act, adopted in , was designed to restrict insider trading by members of Congress and their staff. Of particular interest is how Trump might violate the law if he told his children information that they acted on or invited them to participate in a government meeting where they learned something and used the information to make money.

How Congress Quietly Overhauled Its Insider-Trading Law : It's All Politics : NPR

The tweets suggested that Trump will maintain ownership of the company and his daughter Ivanka may be advising him in government. Trump must also sell his ownership stake. But the text of the STOCK Act explicitly includes the president.

The STOCK Act presents a more obvious problem for publicly traded shares that are easy to buy and sell. There has been only one case involving the law, in which the Securities and Exchange Commission alleges a House staffer tipped off a lobbyist to a market-moving decision from the Centers for Medicare and Medicaid Services.

A spokesman said this week that Trump sold the equities in June but provided no documentation. The more troublesome question is how the STOCK Act might affect any stake Trump keeps in his real estate business, as it appears to cover anything Trump might do to benefit his private businesses using knowledge he gains as president.

Ironically, by removing himself from business operations of his company but not ownership, as Trump has indicated he plans to do, he makes it more likely his holdings will be treated as securities subject to insider-trading laws, according to Richard Morris, a partner at Herrick Feinstein who specializes in corporate real estate.

The Office of Government Ethics, which sets ethics policy for the executive branch, declined to comment. But the office did invoke the STOCK Act in a letter Monday to Sen. Tom Carper of Delaware, the ranking Democrat on the Senate Homeland Security and Governmental Affairs Committee. The precise application and enforcement of the STOCK Act presents a potential conflict of interest for Trump: Missing out on the latest scoops?

Sign up for POLITICO Playbook and get the latest news, every morning — in your inbox. Magazine Home Today's Cover Opinion Latest Stories Weekly Email Signups What Works. Account Details Log In Log Out. Europe Edition POLITICO Media POLITICO Florida POLITICO New Jersey POLITICO New York. Sections Congress White House Magazine The Agenda Latest Election Results. POLITICO Live POLITICO Live Home Upcoming Events Previous Events About POLITICO Live. Multimedia All Video POLITICO Podcasts Playback.

What exactly is insider trading?

Series What Works Women Rule POLITICO Caucus Agenda The First Days: Handel wins Georgia special election. Trump spikes the ball after Georgia election win. How McConnell gets to 50 votes to repeal Obamacare. Why the White House Is Reading Greek History.

Transferring Trump's business to family won't 'eliminate conflicts of interest' By Elana Schor. Share on Facebook Share on Twitter. This story tagged under: Louise Slaughter Ethics Norm Eisen Donald Trump Stock Market STOCK Act Ivanka Trump Conflicts Of Interest President Donald Trump Donald Trump Presidency.

How Archie Parnell Ran the Best Democratic Campaign of By Bill Scher. Why So Many Critics Hate the New Obama Biography By David Greenberg.

Trump Is on a Collision Course With Iran By Dennis Ross. In Trump, Cardin Sees Danger Everywhere He Looks By Edward-Isaac Dovere. Core Footer - dropdown links U.