Prohibited financial transactions

(a)

Definitions

In this section: (1)

Covered election

The term covered election means an election for the office of— (A)President; (B)Vice President; (C)United States Senator; (D)United States Representative; (E)Delegate to Congress; or (F)Resident Commissioner of Puerto Rico. (2)

Covered individual

The term covered individual means— (A)the President; (B)the Vice President; (C) a United States Senator; (D)a United States Representative; (E)a Delegate to Congress; (F)a Resident Commissioner of Puerto Rico; or (G)a candidate in a covered election. (3)

Covered investment

The term covered investment means any digital asset. (4)

Digital asset

The term digital asset means any digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology. (5)

Prohibited financial transaction

(A)

In general

The term prohibited financial transaction means— (i)any issuance, sponsorship, or endorsement of a covered investment; (ii)any purchase, sale, holding, or other conduct that causes a covered individual to obtain a covered investment; (iii)any acquisition of any financial interest comparable to an interest described in clause (i) or (ii) through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means; or (iv)any acquisition of any financial interest comparable to an interest described in clause (i) or (ii) as part of an aggregation or compilation of such interests through a mutual fund, exchange-traded fund, or other similar means. (6)

Qualified blind trust

The term qualified blind trust means a qualified blind trust (as defined in section 13104(f)(3) of title 5, United States Code) that has been approved in writing by the applicable supervising ethics office under subparagraph (D) of such section 13104(f)(3). (b)

Prohibited financial transactions

Except as provided in subsection (c), a covered individual may not engage in any prohibited financial transaction during— (1)the period beginning on the date of filing as a candidate in a covered Federal election and ending on the date of the covered Federal election; (2)the term of service of the covered individual; and (3)the 1-year period beginning on the date on which the service of the covered individual is terminated. (c)

Qualified blind trust

(1)

In general

During any of the periods described in subsection (b), for each covered investment owned by a covered individual, the covered individual shall place the covered investment in a qualified blind trust, including by establishing a qualified blind trust for that purpose, if necessary. (2)

Qualified blind trust requirements

A qualified blind trust may not be established for purposes of complying with this section without the prior approval of the applicable supervising ethics office. With respect to any such trust so approved, the applicable trustee— (A)shall divest of any such instrument placed in the trust not later than 6 months after the trust is established; (B)shall certify to the applicable supervising ethics office on an annual basis that the trustee has not provided any information on the trust’s assets or transactions to the applicable covered individual; and (C)may not have a close personal or business relationship with the applicable covered individual. (d)

Reporting requirements

(1)

Supervising ethics offices

Each supervising ethics office shall make available on the public website of the supervising ethics office a copy of any qualified blind trust agreement of each covered individual. (2)

Amendment

Section 13101(18) of title 5, United States Code, is amended— (A)in subparagraph (C), by striking and at the end; (B)in subparagraph (D), by striking the period and inserting ; and; and (C)by adding at the end the following:

(E)the Federal Election Commission for a candidate in an election for the office of President, Vice President, United States Senator, United States Representative, Delegate to Congress, or Resident Commissioner of Puerto Rico.

(e)

Liability and immunity

For purposes of any immunities to civil or criminal liability, any conduct comprising or 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. (f)

Civil penalties

(1)

Civil action

The Attorney General may bring a civil action in any appropriate district court of the United States against any covered individual who violates subsection (b). (2)

Civil penalty

Any covered individual who knowingly violates subsection (b) shall be subject to a civil monetary penalty of not more than $250,000. (3)

Disgorgement

A covered individual who is found in a civil action under paragraph (1) to have violated subsection (b) shall disgorge to the Treasury of the United States any profit from the unlawful activity that is the subject of that civil action. (g)

Criminal penalties

(1)

In general

It shall be unlawful for a covered individual to— (A)knowingly violate subsection (b); and (B)through such violation— (i)causes an aggregate loss of not less than $1,000,000 to 1 or more persons in the United States; or (ii)benefits financially, through profit, gain, or advantage, directly or indirectly through any family member or business associate of the covered individual, from a prohibited financial transaction. (2)

Penalty

A covered individual who violates paragraph (1) shall be fined under title 18, United States Code, imprisoned for not more 18 than years, or both.