Restrictions on trade of covered investments

(a) Restrictions Chapter 131 of title 5, United States Code, is amended by adding at the end the following: IV Restrictions on trade of covered investments 13151. Definitions In this subchapter: (1) Commodity The term commodity — (A) has the meaning given the term in section 1a of the Commodity Exchange Act (7 U.S.C. 1a); and (B) does not include a precious metal (as defined in section 1027.100 of title 31, Code of Federal Regulations). (2) Covered individual The term covered individual means any of the following: (A) A Member of Congress as defined in section 13101. (B) The President. (C) The Vice President. (D) A candidate (as defined in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101)) for nomination for election or for election to the office of President, Vice President, or Senator or Representative in, or Delegate or Resident Commissioner to, Congress, beginning on the date the candidate designates or redesignates a political committee (as required in section 302(e) of such Act (52 U.S.C. 30102(e))), and ending on the earlier of— (i) the date the candidate announces the suspension of the candidate’s campaign for such nomination or office; (ii) the date the candidate withdraws from the election or concedes the election for such nomination or office; or (iii) the date the oath of office for such office is given to the candidate. (E) A dependent child (as that term is defined in section 13101) or a spouse an individual described in subparagraph (A) through (D) of this paragraph. (3) Covered investment The term covered investment — (A) means an investment in a digital asset, a security, a commodity, a future, or any comparable economic interest acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means; and (B) does not include— (i) a widely held investment fund that is diversified and publicly traded on a national or regional stock exchange; (ii) a United States Treasury bill, note, or bond; (iii) a State or municipal government bill, note, or bond; or (iv) any compensation received by the spouse or dependent child of a covered official from their employer. (4) Digital asset The term digital asset has the meaning given the term in section 6045(g)(3)(D) of the Internal Revenue Code of 1986 (26 U.S.C. 6045(g)(3)(D)). (5) Diversified The term diversified, with respect to an investment fund, means such fund does not have a stated policy of concentrating its investments in any industry, business, single country other than the United States, or bonds of a single State within the United States except for the State in which the Member of Congress resides. (6) Future The term future means a financial contract obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial investment, at a predetermined future date and price. (7) Security The term security has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)). (8) Supervising ethics office The term supervising ethics office has the meaning given that term in section 13101. 13152. Trade of covered investments (a) Conduct Except as described in subsection (b), no covered individual may, directly or indirectly, buy or sell a covered investment, unless such covered investment is located in a qualified blind trust. (b) Occupational exception A covered individual described in section 13151(2)(C) may buy or sell any covered investment if such covered investment is not owned by a covered individual and if such trade is performed as a function of the primary occupation of the spouse or dependent child. (c) Disclosure A covered individual shall provide information or materials on a quarterly basis to the supervising ethics office to ensure that the covered individual is in compliance with the provisions of this subchapter. 13153. Penalties (a) In general A violation of the restrictions on trading or ownership of covered investments in section 13152 shall be handled as follows: (1) With respect to a violation by any individual described in any of subparagraphs (A) through (C) of section 13151(2), at the direction of the supervising ethics office, payment into the Treasury in an amount equal to the sum of— (A) the profits of any transaction that violates the provisions of this subchapter; and (B) if determined applicable and appropriate by the supervising ethics office, an amount equal to three times the value of the covered investment at issue. (2) With respect to any individual described in subparagraph (D) or (E) of section 13151(2), the Attorney General shall assess a civil penalty in an amount equal to the sum of— (A) the profits of any transaction that violates the provisions of this subchapter; and (B) if determined applicable and appropriate by the Attorney General, an amount equal to three times the value of the covered investment at issue. (b) Payment restrictions A Member of Congress or candidate may not pay any of the penalties under this section by using amounts from the following sources: (1) The Members’ Representational Allowance. (2) The Senators’ Official Personnel and Office Expense Account. (3) Any contribution (as defined in section 301(8) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8))) accepted as a candidate, or any other donation received as support for activities of the individual as a holder of Federal office. (c) Publication Each supervising ethics office shall publish on a publicly available website a description of— (1) each violation of this subchapter as determined by the supervising ethics office; and (2) the penalty assessed by the supervising ethics office with respect to each violation under paragraph (1).. (b) Clerical amendment The table of sections for such chapter 131 is amended by adding at the end the following: Subchapter IV—Restrictions on Trade of Covered Investments 13151. Definitions. 13152. Trade of covered investments. 13153. Penalties.