No Stock or Crypto Trading For Elected Officials

119th CONGRESS 2d Session H.R. ___ To prohibit certain Federal officials and their immediate family members from purchasing, selling, or trading individual stocks, bonds, and digital assets, and for other purposes. _______________________________________________________ IN THE HOUSE OF REPRESENTATIVES March __, 2026 Mr./Ms. __________ introduced the following bill; which was referred to the Committee on Ethics, the Committee on Financial Services, and the Committee on Oversight and Accountability _______________________________________________________ A BILL To prohibit certain Federal officials and their immediate family members from purchasing, selling, or trading individual stocks, bonds, and digital assets, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "Preventing Elected Leaders from Owning or Trading Individual Securities and Crypto Assets Act of 2026" or the "PELOTISCA Act of 2026". SEC. 2. FINDINGS. Congress finds the following: (1) Public trust in the United States Government depends on the assurance that elected and senior appointed officials are making decisions in the public interest, free from personal financial conflicts of interest. (2) The Stop Trading on Congressional Knowledge Act of 2012 (Public Law 112-105) affirmed that Members of Congress and Federal employees are not exempt from insider trading prohibitions, yet violations and the appearance of conflicts of interest have persisted. (3) Between 2020 and 2025, numerous Members of Congress and senior Federal officials disclosed thousands of individual stock, bond, and digital asset transactions worth hundreds of millions of dollars, raising serious questions about whether legislative and executive decisions were influenced by personal financial interests. (4) The emergence of digital assets, including cryptocurrencies and other blockchain-based tokens, has created new avenues for potential conflicts of interest, including the issuance, promotion, or trading of such assets by officials or their family members in connection with official duties or relationships with foreign governments and special interests. (5) Eighty-six percent of Americans across party lines support prohibiting Members of Congress from trading individual stocks, demonstrating overwhelming bipartisan public demand for reform. (6) Existing disclosure requirements and trading restrictions have proven insufficient to prevent conflicts of interest or restore public confidence in the integrity of Federal officials. (7) A comprehensive prohibition on the trading of individual stocks, bonds, and digital assets by covered officials and their immediate family members, with meaningful penalties for violations, is necessary to restore public trust and ensure that Federal officials serve the American people rather than their personal financial interests. SEC. 3. DEFINITIONS. In this Act: (1) COVERED OFFICIAL.--The term "covered official" means-- (A) any Member of Congress, as defined in section 13101(12) of title 5, United States Code; (B) the President of the United States; (C) the Vice President of the United States; (D) any officer or employee in the executive branch serving in a position to which the individual was appointed by the President, by and with the advice and consent of the Senate, who serves as the head, deputy head, or equivalent senior leader of any Federal department, agency, commission, board, or other organization established by Federal law or Executive order; and (E) any other individual serving in a position in the executive branch to which the individual was appointed by the President who exercises significant authority over policy, procurement, regulation, or the expenditure of Federal funds, as determined by the Director of the Office of Government Ethics. (2) COVERED TRANSACTION.--The term "covered transaction" means any purchase, sale, exchange, or other acquisition or disposition of a covered investment, whether effected directly or indirectly, including through an agent, broker, dealer, trustee (other than a trustee of a qualified blind trust or qualified diversified trust described in section 13104(f) of title 5, United States Code), or other intermediary. (3) COVERED INVESTMENT.--The term "covered investment" means-- (A) any share of stock in a corporation or other equity interest in a business entity, including any option, warrant, or other right to acquire such an interest; (B) any bond, note, debenture, or other evidence of indebtedness issued by any entity other than the United States Government or any agency or instrumentality thereof; (C) any digital asset, as defined in section 6045(g)(3)(D) of the Internal Revenue Code of 1986 (26 U.S.C. 6045(g)(3)(D)); (D) any commodity, future, or derivative contract with respect to a specific security or digital asset described in subparagraphs (A) through (C); (E) any interest in a hedge fund, private equity fund, or other private investment vehicle that is not a widely held investment fund; and (F) any other financial instrument that the Director of the Office of Government Ethics, in consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission, determines by regulation to be substantially similar to an investment described in subparagraphs (A) through (E). (4) DIGITAL ASSET.--The term "digital asset" has the meaning given such term in section 6045(g)(3)(D) of the Internal Revenue Code of 1986 (26 U.S.C. 6045(g)(3)(D)). (5) EXCEPTED INVESTMENT.--The term "excepted investment" means-- (A) a widely held investment fund, as described in section 13104(f)(8) of title 5, United States Code, including any mutual fund, exchange-traded fund, or regulated investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), provided that-- (i) the fund is publicly traded or available for purchase by the general public; (ii) the fund is diversified, meaning that no single issuer (other than the United States Government) comprises more than 5 percent of the total assets of the fund; and (iii) the covered official or covered family member does not exercise any control or influence over the specific investment decisions of the fund; (B) any interest in a qualified blind trust or qualified diversified trust, as defined in section 13104(f) of title 5, United States Code, and approved by the applicable supervising ethics office; (C) any index fund, target-date retirement fund, or other passively managed fund that tracks a broad-based securities index; (D) any investment in United States Treasury securities, including Treasury bills, notes, bonds, and inflation-protected securities; (E) any interest in a Federal retirement program, including the Thrift Savings Plan under subchapter III of chapter 84 of title 5, United States Code; (F) any deposit in a bank, savings institution, credit union, or similar financial institution insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration; (G) any interest in real property, provided that such interest is not held through a publicly traded real estate investment trust; and (H) any other investment that the Director of the Office of Government Ethics determines by regulation does not create a conflict of interest or the appearance of a conflict of interest. (6) COVERED FAMILY MEMBER.--The term "covered family member" means, with respect to a covered official-- (A) the spouse of the covered official; (B) any dependent child of the covered official, as defined in section 13101(3) of title 5, United States Code; (C) any son, daughter, stepson, or stepdaughter of the covered official who is not a dependent child but who is under the age of 26; (D) any parent, stepparent, father-in-law, or mother-in-law of the covered official; and (E) any other individual who is claimed as a dependent on the Federal income tax return of the covered official. (7) SUPERVISING ETHICS OFFICE.--The term "supervising ethics office" has the meaning given that term in section 13101(18) of title 5, United States Code. (8) WIDELY HELD INVESTMENT FUND.--The term "widely held investment fund" means a widely held investment fund as described in section 13104(f)(8) of title 5, United States Code, whether such fund is a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund. SEC. 4. PROHIBITION ON COVERED TRANSACTIONS. (a) In General.-- (1) COVERED OFFICIALS.--No covered official may, during the period beginning on the date on which the individual becomes a covered official and ending on the date that is 180 days after the date on which the individual ceases to be a covered official, engage in any covered transaction, except as a divestment required under subsection (c). (2) COVERED FAMILY MEMBERS.--No covered family member of a covered official may, during the period described in paragraph (1) with respect to such covered official, engage in any covered transaction, except as a divestment required under subsection (c). (b) Applicability to Excepted Investments.--The prohibition under subsection (a) shall not apply to the purchase, sale, or holding of any excepted investment, as defined in section 3(5) of this Act. (c) Divestment Requirement.-- (1) IN GENERAL.--Any covered official or covered family member who, on the applicable date described in paragraph (2), holds any covered investment shall divest such covered investment not later than 180 days after such applicable date. (2) APPLICABLE DATE.--The applicable date under this subsection is-- (A) for any individual who is a covered official or covered family member on the date of enactment of this Act, the date of enactment of this Act; (B) for any individual who becomes a covered official after the date of enactment of this Act, the date on which such individual becomes a covered official; and (C) for any individual who becomes a covered family member after the date of enactment of this Act (including by reason of marriage, birth, adoption, or appointment of a covered official), the date on which such individual becomes a covered family member. (3) EXTENSION.--The supervising ethics office for the applicable branch may grant an extension of not more than 90 additional days for the divestment required under paragraph (1) upon a showing of good cause by the covered official or covered family member, including demonstrated financial hardship or market conditions that would result in significant financial loss. (4) CONVERSION TO EXCEPTED INVESTMENTS.--A covered official or covered family member may satisfy the divestment requirement under this subsection by converting covered investments into excepted investments, including by transferring assets to a qualified blind trust or qualified diversified trust approved by the applicable supervising ethics office in accordance with section 13104(f) of title 5, United States Code. SEC. 5. PENALTIES FOR VIOLATIONS. (a) Civil Penalties.-- (1) IN GENERAL.--Any covered official or covered family member who knowingly engages in a covered transaction in violation of section 4 shall be subject to a civil penalty of not more than $100,000 for each such violation. (2) NEGLIGENT VIOLATIONS.--Any covered official or covered family member who negligently engages in a covered transaction in violation of section 4 shall be subject to a civil penalty of not more than $50,000 for each such violation. (b) Disgorgement of Profits.-- (1) IN GENERAL.--In addition to any civil penalty imposed under subsection (a), any covered official or covered family member who engages in a covered transaction in violation of section 4 shall be required to disgorge to the Treasury of the United States all profits realized from such transaction. (2) CALCULATION OF PROFITS.--For purposes of this subsection, profits shall be calculated as the difference between-- (A) the fair market value of the covered investment at the time of the violating transaction; and (B) the original cost basis of the covered investment, or, in the case of a sale, the proceeds of the sale minus the original cost basis. (3) DEPOSIT.--All amounts disgorged under this subsection shall be deposited in the general fund of the Treasury. (c) Public Disclosure of Violations.-- (1) IN GENERAL.--Not later than 30 days after a final determination that a violation of section 4 has occurred, the applicable supervising ethics office shall publish on a publicly accessible website of the United States Government a report containing-- (A) the name of the covered official or covered family member who committed the violation; (B) the relationship of the violator to the covered official, if the violator is a covered family member; (C) a description of the covered transaction, including the type and identity of the covered investment, the date of the transaction, and the dollar amount involved; (D) the amount of any civil penalty imposed; (E) the amount of any profits disgorged; and (F) any other information the supervising ethics office determines is relevant to public understanding of the violation. (2) PERMANENT RECORD.--Reports published under paragraph (1) shall remain publicly accessible for not less than 10 years after the date of publication. (d) Enforcement.-- (1) ATTORNEY GENERAL.--The Attorney General may bring a civil action in any appropriate United States district court against any covered official or covered family member to enforce the provisions of this Act, including to recover civil penalties under subsection (a) and to compel disgorgement under subsection (b). (2) SUPERVISING ETHICS OFFICES.--Each supervising ethics office shall-- (A) monitor compliance with this Act by covered officials and covered family members under its jurisdiction; (B) investigate potential violations of this Act; (C) refer matters to the Attorney General for enforcement action as appropriate; and (D) impose administrative penalties, including fines not to exceed $10,000, for failure to timely divest as required under section 4(c), separate from and in addition to the penalties under subsections (a) and (b). (3) PRIVATE RIGHT OF ACTION.--Any citizen of the United States may bring a civil action in any appropriate United States district court to compel compliance with this Act by a covered official or covered family member. The court may award reasonable attorneys' fees and costs to a prevailing plaintiff in any such action. (e) Referral for Criminal Prosecution.--Nothing in this section shall be construed to limit the authority of the Attorney General or any other Federal law enforcement authority to investigate or prosecute any violation of Federal criminal law, including violations of section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) and Rule 10b-5 thereunder, section 1348 of title 18, United States Code (securities and commodities fraud), or any other applicable provision of law. SEC. 6. REPORTING AND COMPLIANCE. (a) Certification Requirement.-- (1) INITIAL CERTIFICATION.--Not later than 30 days after the applicable date described in section 4(c)(2), each covered official shall file with the applicable supervising ethics office a certification, under penalty of perjury, that-- (A) identifies all covered investments held by the covered official and each covered family member of the covered official as of such date; and (B) sets forth a plan for divestment of such covered investments in compliance with section 4(c). (2) COMPLETION CERTIFICATION.--Not later than 30 days after completing the divestment required under section 4(c), each covered official shall file with the applicable supervising ethics office a certification, under penalty of perjury, that the covered official and each covered family member of the covered official have divested all covered investments in compliance with this Act. (3) ANNUAL CERTIFICATION.--Each covered official shall file with the applicable supervising ethics office, on an annual basis at the time of filing the financial disclosure report required under subchapter I of chapter 131 of title 5, United States Code, a certification, under penalty of perjury, that the covered official and each covered family member of the covered official have not engaged in any covered transaction in violation of this Act during the preceding calendar year. (b) Notification of Covered Family Members.--Each covered official shall, not later than 15 days after becoming a covered official, provide written notification to each covered family member of the covered official regarding the prohibitions and requirements of this Act. (c) Cooperation of Financial Institutions.-- (1) IN GENERAL.--The Securities and Exchange Commission and the Commodity Futures Trading Commission shall, not later than 1 year after the date of enactment of this Act, jointly issue regulations requiring brokers, dealers, digital asset trading platforms, and other financial intermediaries to-- (A) upon notification by a supervising ethics office, flag accounts held by covered officials and covered family members; and (B) report to the applicable supervising ethics office any covered transaction in a flagged account not later than 5 business days after such transaction. (2) SAFE HARBOR.--No broker, dealer, digital asset trading platform, or other financial intermediary shall be liable for any action taken in good faith to comply with regulations issued under paragraph (1). SEC. 7. NONRECOGNITION OF GAIN ON REQUIRED DIVESTMENT. (a) In General.--Paragraph (1) of section 1043(b) of the Internal Revenue Code of 1986 (26 U.S.C. 1043(b)(1)) is amended-- (1) by striking "and" at the end of subparagraph (A); (2) by redesignating subparagraph (B) as subparagraph (C); and (3) by inserting after subparagraph (A) the following new subparagraph: "(B) any covered official (as defined in section 3 of the Preventing Elected Leaders from Owning or Trading Individual Securities and Crypto Assets Act of 2026) or any covered family member (as defined in such section 3) of such covered official, but only with respect to a divestment of property required by such Act and only if, not later than 60 days after the date of such divestment, the individual reinvests the proceeds in property permitted under such Act, and". (b) Effective Date.--The amendments made by subsection (a) shall apply to sales after the date of enactment of this Act. SEC. 8. AMENDMENTS TO THE ETHICS IN GOVERNMENT ACT. (a) Additional Disclosure Requirements.--Section 13104 of title 5, United States Code, is amended by adding at the end the following: "(l) Additional Disclosure for Covered Officials Under the Preventing Elected Leaders from Owning or Trading Individual Securities and Crypto Assets Act of 2026.-- "(1) IN GENERAL.--Each individual who is a covered official (as defined in section 3 of the Preventing Elected Leaders from Owning or Trading Individual Securities and Crypto Assets Act of 2026) shall include in any report filed under this subchapter-- "(A) a statement of compliance or noncompliance with the requirements of such Act; "(B) a description of any covered investment (as defined in section 3 of such Act) held by the individual or any covered family member (as defined in section 3 of such Act) of the individual, including any covered investment that is in the process of being divested; and "(C) a description of any excepted investment (as defined in section 3 of such Act) held by the individual or any covered family member of the individual, including the name and type of each such investment. "(2) DIGITAL ASSETS.--For purposes of this subsection, the term 'digital asset' has the meaning given such term in section 6045(g)(3)(D) of the Internal Revenue Code of 1986 (26 U.S.C. 6045(g)(3)(D)).". (b) Conforming Amendment.--Section 13106 of title 5, United States Code, is amended by adding at the end the following: "(g) Violations of the Preventing Elected Leaders from Owning or Trading Individual Securities and Crypto Assets Act of 2026.-- "(1) IN GENERAL.--The Attorney General may bring a civil action in any appropriate United States district court against any individual who knowingly and willfully violates the provisions of the Preventing Elected Leaders from Owning or Trading Individual Securities and Crypto Assets Act of 2026. "(2) PENALTY.--The court in which such action is brought may assess against such individual a civil penalty in any amount not to exceed $100,000 for each violation.". SEC. 9. RULEMAKING. (a) Office of Government Ethics.--Not later than 180 days after the date of enactment of this Act, the Director of the Office of Government Ethics shall issue such rules and regulations as are necessary to carry out this Act, including-- (1) guidance on the types of investments that qualify as excepted investments under section 3(5); (2) procedures for the establishment and approval of qualified blind trusts and qualified diversified trusts for purposes of compliance with this Act; (3) procedures for monitoring and enforcing compliance by covered officials and covered family members in the executive branch; (4) standards for determining which positions in the executive branch are covered under section 3(1)(E); and (5) coordination procedures with the congressional ethics committees for enforcement with respect to Members of Congress. (b) Congressional Ethics Committees.--Not later than 180 days after the date of enactment of this Act, the Select Committee on Ethics of the Senate and the Committee on Ethics of the House of Representatives shall each issue such rules and interpretive guidance as are necessary to implement and enforce this Act with respect to Members, officers, and employees of their respective chambers. (c) Securities and Exchange Commission.--Not later than 1 year after the date of enactment of this Act, the Securities and Exchange Commission shall issue such rules as are necessary to carry out section 6(c) of this Act. SEC. 10. ANNUAL REPORT TO CONGRESS. (a) In General.--Not later than March 1 of each year, the Director of the Office of Government Ethics, in coordination with the congressional ethics committees, shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Accountability of the House of Representatives, the Select Committee on Ethics of the Senate, and the Committee on Ethics of the House of Representatives a report on the implementation and enforcement of this Act during the preceding calendar year. (b) Contents.--Each report under subsection (a) shall include-- (1) the number of covered officials and covered family members subject to this Act; (2) the number and type of divestments completed; (3) the number and type of violations identified; (4) the total amount of civil penalties imposed; (5) the total amount of profits disgorged; (6) the number of matters referred to the Attorney General for enforcement; (7) any recommendations for legislative or regulatory changes to improve the effectiveness of this Act; and (8) a summary of any challenges encountered in implementation or enforcement. SEC. 11. RULE OF CONSTRUCTION. (a) No Limitation on Other Laws.--Nothing in this Act shall be construed to-- (1) limit or otherwise affect the application of the insider trading prohibitions arising under the securities laws, including section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) and Rule 10b-5 thereunder; (2) limit or otherwise affect the application of any provision of the Stop Trading on Congressional Knowledge Act of 2012 (Public Law 112-105); (3) limit or otherwise affect the application of sections 202 through 209 of title 18, United States Code, or any other Federal criminal statute; (4) create any inference that any conduct not prohibited by this Act is permissible under any other provision of law; or (5) limit the authority of any supervising ethics office to impose additional restrictions on the financial activities of individuals under its jurisdiction. (b) Constitutional Officers.--The provisions of this Act that are applicable to Members, officers, or employees of the legislative branch are enacted by the Congress-- (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and (2) with full recognition of the constitutional right of either House to change such rules (so far as relating to such House) at any time, in the same manner, and to the same extent as in the case of any other rule of such House. SEC. 12. SEVERABILITY. If any provision of this Act, or the application of such provision to any person or circumstance, is held to be unconstitutional or otherwise invalid, the remainder of this Act, and the application of such provision to other persons and circumstances, shall not be affected thereby. SEC. 13. EFFECTIVE DATE. (a) In General.--Except as otherwise provided in this Act, this Act shall take effect on the date that is 180 days after the date of enactment of this Act. (b) Divestment Period.--The divestment requirements under section 4(c) shall apply beginning on the date of enactment of this Act, with the 180-day divestment period running from such date for individuals who are covered officials or covered family members on such date. (c) Rulemaking Deadline.--The rulemaking requirements under section 9 shall take effect on the date of enactment of this Act. ``` ---