Congress has access to a great deal of non-public corporate information due to their regulatory powers. In 2012, a story broke that uncovered many politicians were using that classified information to buy stock before news came out. For the rest of us, that is called insider trading and something that leads to jail time. For politicians, it is just another day in Congress. Believe it or not, there was nothing that said it was illegal for politicians to benefit from non-public information (better known as insider trading).
Once new got out, the politicians quickly passed the Stock Act which was designed to curb insider trading by lawmakers and their staff. Said another way the politicians were caught and to divert attention quickly passed a law to put an end to the legal/illegal activity.
It didn’t quite work. The SEC wanted to know more and launched an investigation into a Medicare law where politicians and hedge funds made hefty profits. So, they made an inquiry to get records.
The politicians quickly blocked that inquiry claiming that they are “constitutionally protected” due to the nature of their work.
Now, for whatever reason politicians could legally trade using insider information prior to the stock act being passed. However, the involvement of hedge funds on the same information is illegal plain and simple. The SEC has every right to see those records since there is reason to believe that politicians did break the law.
It is amazing that politicians can live above the law due to the office that they serve. It is ironic that they are protected from investigation of breaking laws they themselves actually wrote. It is not difficult to see why politicians have record low approval ratings as low as 10%.