Criminal penalties relating to prohibited financial transactions

(a) In general Chapter 11 of title 18, United States Code, is amended by inserting after section 220 the following: 221. Prohibited financial transactions (a) Definitions In this section: (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 (3)(A)(i), including in the title of the financial interest. (3) 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. (b) Benefitting from prohibited financial transaction Any covered individual who— (1) knowingly violates any provision of section 13152(a) of title 5; and (2) through such violation— (A) causes an aggregate loss of not less than $1,000,000 to 1 or more persons in the United States; or (B) benefits financially, through profit, gain, or advantage, directly or indirectly through any family member or business associate of the covered individual, from the sale, purchase, or distribution of the financial interest described in subsection (a)(3)(A)(i) issued, sponsored, or endorsed in violation of section 13152 of title 5, shall be fined under this title, imprisoned for not more than 5 years, or both. (c) Bribery Any covered individual who— (1) knowingly violates any provision of section 13152(a) of title 5; and (2) directly or indirectly, corruptly demands, seeks, receives, accepts, or agrees to receive or accept any thing of value personally or for any other person or entity, in return for— (A) being influenced in the performance of any official act; (B) being influenced to commit or aid in committing, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States; or (C) being induced to do or omit to do any act in violation of the official duty of such official or person, shall be fined under this title or not more than 3 times the monetary equivalent of the thing of value, whichever is greater, or imprisoned for not more than 15 years, or both, and may be disqualified from holding any office of honor, trust, or profit under the United States. (d) Insider trading Any covered individual who knowingly violates section 13152(a) of title 5 and, in committing such violation, also knowingly violates the provisions of section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) shall be fined under this title or not more than 3 times the amount of financial gain, if any, that the individual benefitted from relating to the prohibited conduct, whichever is greater, or imprisoned for not more than 15 years, or both, and may be disqualified from holding any office of honor, trust, or profit under the United States. (e) Intent To incur criminal liability under this section, it shall not be required that a covered individual intended to create a financial interest described in subsection (a)(3)(A)(i) through the issuance, sponsorship or endorsement of the financial interest described in subsection (a)(3)(A)(i). (f) Liability and immunity For purposes of any immunities to civil and criminal liability, any conduct relating to a prohibited financial transaction under this section shall be deemed an unofficial act and beyond the scope of official duties of the relevant covered individual.. (b) Clerical amendment The table of sections for chapter 11 of title 18, United States Code, is amended by inserting after the item relating to section 220 the following: 221. Prohibited financial transactions..