Prohibit Members of Congress and their spouses from trading stock

Chapter 131 of title 5, United States Code, is amended by adding after subchapter III the following:

In this subchapter—

(1) the term covered financial instrument —

(A) means—

(i) any investment in—

(I) a security (as defined in section 3(a) of Securities Exchange Act of 1934 (15 U.S.C. 78c(a)));

(II) a security future (as defined in that section); or

(III) a commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)); and

(ii) any economic interest comparable to an interest described in subclause (I) that is 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 diversified mutual fund;

(ii) a diversified exchange-traded fund;

(iii) any investment in the Thrift Savings Plan; or

(iv) a United States Treasury bill, note, or bond;

(2) the term Member of Congress has the meaning given that term in section 13101; and

(3) the term qualified blind trust has the meaning given that term in section 13104(f)(3).

Except as provided in subsection (b), a Member of Congress and the Member’s spouse may not, during the term of service of the Member, hold, purchase, or sell any covered financial instrument.

The prohibition on holding any covered financial instrument under subsection (a) shall not apply to a covered financial instrument a Member of Congress or the Member’s spouse owns immediately preceding the term of the Member.

Subsection (a) does not apply to a covered financial instrument held in a qualified blind trust operated on behalf of, or for the benefit of, a Member of Congress or the Member’s spouse.

A Member of Congress who holds or conducts a transaction involving a covered financial instrument in violation of this section may be subject to a civil fine as described under section 13106(a).

The table of sections for such chapter 131 is amended by inserting after the item relating to section 13146 the following:

The amendments made by subsection (a) shall begin to apply to Members of Congress and their spouses on the first day of the One Hundred Twentieth Congress.