H.R. 1908: End Congressional Stock Trading Act
This bill, known as the "End Congressional Stock Trading Act," aims to prohibit Members of Congress, as well as their spouses and dependent children, from trading or owning various forms of securities, including stocks, bonds, and commodities. The main goal is to eliminate potential conflicts of interest that may arise from Congress members personally profiting from their legislative work.
Key Provisions
Definition of Key Terms
The bill defines several terms necessary for understanding its provisions, including:
- Member of Congress: A person who is a member of the legislative branch of the United States government.
- Dependent Child: Defined in accordance with specific U.S. code.
- Commodity, Security, and Others: These terms refer to various financial instruments as defined in existing laws.
Prohibition on Trading and Ownership
Members of Congress, along with their spouses and dependent children, are prohibited from:
- Owning or trading securities such as stocks, bonds, or other complex investment vehicles.
- Exceptions exist for certain types of diversified or widely held investment funds, U.S. Treasury securities, and specific assets related to the Alaska Native Claims Settlement Act.
Divestment Requirements
Individuals currently serving in Congress must divest from any prohibited assets within specified timeframes:
- 180 days for most assets.
- 5 years for interests in hedge funds or venture capital funds.
New Members of Congress and their immediate family must divest within 90 days, or 5 years for complex investments, after taking office.
Compliance and Enforcement
Should Members violate this act, they may face:
- Civil penalties of up to $100,000 for each violation, enforced by legal authorities.
- Provisions are made for divestiture-related nonrecognition of gains for tax purposes, reducing negative financial impacts when complying with the act.
Guidance and Interpretation
The Senate and House ethics committees are tasked with providing interpretive guidance about terms and requirements outlined in the bill, ensuring clarity in its application.
Relevant Companies
None found
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
2 bill sponsors
Actions
3 actions
| Date | Action |
|---|---|
| Mar. 28, 2025 | Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development. |
| Mar. 06, 2025 | Introduced in House |
| Mar. 06, 2025 | Referred to the Committee on Financial Services, and in addition to the Committees on Agriculture, House Administration, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. |
Corporate Lobbying
0 companies lobbying
None found.
* Note that there can be significant delays in lobbying disclosures, and our data may be incomplete.
Potentially Relevant Congressional Stock Trades
No relevant congressional stock trades found.