Prohibited financial transactions

(a) In general Chapter 131 of title 5, United States Code, is amended by adding at the end the following: IV Financial exploitation by a public office holder 13151. Definitions In this subchapter: (1) Covered individual The term covered individual means an individual described in section 13103(f). (2) Endorsement The term endorsement includes the use of the name and likeness of an individual in any marketing materials relating to a financial interest described in subclauses (I) through (V) of paragraph (4)(A)(i), including in the title of the financial interest. (3) Immediate family member The term immediate family member means, with respect to a covered individual— (A) a spouse, parent, brother or sister, or child (including a child age 18 or older) of that covered individual; or (B) an individual to whom the covered individual stands in loco parentis. (4) Prohibited financial transaction (A) In general The term prohibited financial transaction means— (i) any issuance, sponsorship, or endorsement of— (I) a security (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) that is a digital asset; (II) a security future (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) relating to a digital asset; (III) a commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)) that is a digital asset; (IV) a cryptocurrency, meme coin, token, non-fungible token, or other digital asset that is sold for remuneration; or (V) a payment stablecoin; (ii) any financial interest comparable to an interest described in subclauses (I) through (V) of clause (i) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means; or (iii) any financial interest comparable to an interest described in subclauses (I) through (V) of clause (i) that is acquired as part of an aggregation or compilation of such interests through a mutual fund, exchange-traded fund, or other similar means if such aggregation or compilation of such interests constitutes a significant portion of that mutual fund, exchange-traded fund, or other similar means, as determined by the Secretary of the Treasury. (B) Exclusions The term prohibited financial transaction does not include the mere purchase, sale, holding, or other conduct relating to financial instruments or assets routinely accessible to any member of the public. 13152. Prohibition on certain transactions (a) Prohibition Except as provided in subsection (b), a covered individual, or an immediate family member of a covered individual, may not engage in a prohibited financial transaction— (1) during the term of service of the covered individual; (2) during the 180-day period ending on the date on which the service of the covered individual commences; or (3) during the 2-year period beginning on the date on which the service of the covered individual is terminated. (b) Acts affecting a personal financial interest This section shall be supplementary in nature to section 208 of title 18, and nothing in this section shall be construed to limit the application of section 208 of title 18. (c) Liability and immunity For purposes of any immunities to civil liability, any conduct relating to a prohibited financial transaction under this section shall be deemed an unofficial act and beyond the scope of the official duties of the relevant covered individual. 13153. Civil penalties (a) Civil action The Attorney General may bring a civil action in any appropriate district court of the United States against any covered individual, or the immediate family member of a covered individual, who violates section 13152(a). (b) Civil penalty Any covered individual, or the immediate family member of a covered individual, who knowingly violates section 13152(a) shall be subject to a civil monetary penalty of— (1) not more than $25,000 per violation; (2) 10 percent of the value of the financial interest that is the subject of the prohibited conduct; or (3) the amount of financial gain, if any, that the covered individual benefitted from relating to the prohibited conduct, whichever is greater. (c) Disgorgement A covered individual, or the immediate family member of a covered individual, who is found to have violated section 13152(a) in a civil action under subsection (a) of this section shall disgorge to the Treasury of the United States any profit from the prohibited conduct that is the subject of that civil action.. (b) Clerical amendment The table of sections for chapter 131 of title 5, United States Code, is amended by adding at the end the following: SUBCHAPTER IV—Financial exploitation by a public office holder 13151. Definitions. 13152. Prohibition on certain transactions. 13153. Civil penalties..