HouseH.R. 10199119th Congress
Sell Your Stocks or Step Down Act
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10199 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10199
To amend title 5, United States Code, to prohibit the President, the
Vice President, Members of Congress, senior United States Government
officials, and their spouses and dependents from owning or trading
stocks, digital assets, and prediction market contracts, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 31, 2026
Mr. Vindman introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committees on House Administration, the Judiciary, 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
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to prohibit the President, the
Vice President, Members of Congress, senior United States Government
officials, and their spouses and dependents from owning or trading
stocks, digital assets, and prediction market contracts, 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 ``Sell Your Stocks or Step Down Act''.
SEC. 2. RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED INVESTMENTS.
(a) Restrictions.--Chapter 131 of title 5, United States Code, is
amended by inserting at the end the following subchapter:
``SUBCHAPTER IV--RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED
INVESTMENTS
``Sec. 13151. Definitions
``In this subchapter:
``(1) Commodity.--The term `commodity' has the meaning
given the term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
``(2) Covered executive branch official.--The term `covered
executive branch official' means any of the following:
``(A) The head of an executive agency, the United
States Postal Service, or the Postal Regulatory
Commission.
``(B) An officer or employee of the executive
branch who occupies a position classified above GS-15
of the General Schedule, or, in the case of a position
not under the General Schedule, for which the rate of
basic pay is equal to or greater than 120 percent of
the minimum rate of basic pay payable for GS-15 of the
General Schedule.
``(C) An employee in the Senior Executive Service,
as defined in section 3132(a), or an employee in a
comparable senior executive, senior professional, or
senior-level personnel system established for positions
in the intelligence community, the foreign service, or
elsewhere in the executive branch.
``(D) A chief of staff to the head of an executive
agency, or a chief of staff or deputy chief of staff to
the President or Vice President.
``(E) A special Government employee as defined in
section 202 of title 18.
``(3) Covered individual.--The term `covered individual'
means any of the following:
``(A) The President and the Vice President of the
United States.
``(B) A Member of Congress as defined in section
13101.
``(C) An officer or employee of the Congress as
defined in section 13101.
``(D) A covered executive branch official.
``(E) A covered judicial official.
``(F) A dependent child as defined in section 13101
or spouse of an individual described in subparagraph
(A), (B), (C), or (D).
``(4) Covered investment.--The term `covered investment'--
``(A) means an investment in a security, a
commodity, a future, a digital asset, an event
contract, or any comparable economic interest 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 widely held investment fund
described in section 13104(f)(8) that is
diversified and publicly traded on a national
or regional stock exchange;
``(ii) a United States Treasury bill, note,
or bond;
``(iii) a State or municipal government
bill, note, or bond;
``(iv) any compensation received by the
spouse or dependent child of a covered
individual from their employer;
``(v) an interest in a small business
concern;
``(vi) an interest in a limited liability
company created for the sole purpose of
purchasing or holding real estate that serves
as the personal residence of the covered
individual;
``(vii) any share of Settlement Common
Stock issued under section 7(g)(1)(A) of the
Alaska Native Claims Settlement Act (43 U.S.C.
1606(g)(1)(A)); or
``(viii) any share of Settlement Common
Stock as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).
``(5) Covered judicial official.--The term `covered
judicial official' means--
``(A) a justice or judge of the United States as
defined in section 451 of title 28;
``(B) a judge of the United States Court of Federal
Claims;
``(C) a bankruptcy judge appointed under section
152 of title 28; and
``(D) a magistrate judge appointed under section
631 of title 28.
``(6) Digital asset.--The term `digital asset' has the
meaning given the term in section 6045(g)(3)(D) of the Internal
Revenue Code of 1986.
``(7) Diversified.--The term `diversified', with respect to
an investment fund, means such fund does not have a stated
policy of concentrating its investments in any industry,
business, single country other than the United States, or bonds
of a single State within the United States except for the State
in which the covered individual resides.
``(8) Event contract.--The term `event contract' means an
agreement, contract, transaction, or swap in an excluded
commodity described in section 1a(19)(iv) of the Commodity
Exchange Act that are based upon the occurrence, extent of an
occurrence, or contingency (other than a change in the price,
rate, value, or levels of a commodity described in section
1a(2)(i)), by a designated contract market or swap execution
facility (as such terms are defined in the Commodity Exchange
Act).
``(9) Future.--The term `future' means a financial contract
obligating the buyer to purchase an asset or the seller to sell
an asset, such as a physical commodity or a financial
investment, at a predetermined future date and price.
``(10) Security.--The term `security' has the meaning given
the term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
``(11) Small business concern.--The term `small business
concern' has the meaning given that term under section 3 of the
Small Business Act (15 U.S.C. 632).
``(12) Supervising ethics office.--The term `supervising
ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Trade and ownership of covered investments
``(a) Conduct During Federal Service.--Except as provided in
subsection (d), no covered individual may, directly or indirectly, own
or trade a covered investment.
``(b) Compliance.--
``(1) Requirement.--To comply with subsection (a), a
covered individual--
``(A) may not purchase a covered investment; and
``(B) shall, not later than the effective date
established in paragraph (2), divest of any covered
investment at fair market value, subject to subsection
(c).
``(2) Effective date.--The effective date is established as
follows:
``(A) Thirty days after the date of enactment of
the Sell Your Stocks or Step Down Act, for an
individual who is a covered individual on such date of
enactment.
``(B) Thirty days after the date on which an
individual becomes a covered individual, if such date
occurs after the date of enactment of the Sell Your
Stocks or Step Down Act.
``(c) Taxation of Divestitures.--Notwithstanding any other
provision of law, section 1043 of the Internal Revenue Code of 1986
shall not apply to any disposition of property made pursuant to this
subchapter.
``(d) Occupational Exception.--A spouse or dependent child of a
covered individual described in section 13151(3)(A), (B), (C), (D), or
(E) may trade any covered investment if such covered investment is not
owned by such covered individual and if such trade is performed as a
function of the primary occupation of the spouse or dependent child.
``(e) Assets Acquired in Special Circumstances.--In the event that
a covered individual acquires a covered investment after the date of
enactment of the Sell Your Stocks or Step Down Act other than by
purchase, the covered individual shall have 30 days from the date on
which such investment was acquired to divest such covered investment at
fair market value, subject to subsection (c).
``(f) Interpretative Guidance.--The supervising ethics office shall
issue interpretive guidance on any relevant term not defined in this
subchapter.
``Sec. 13153. Penalties
``(a) Failure To Divest.--
``(1) Daily penalty.--Any covered individual who fails to
divest of a covered investment by the applicable deadline under
section 13152 shall pay, for each day of noncompliance,
beginning the day after such deadline and ending on the date
the covered individual comes into compliance, a fee equal to 10
percent of the fair market value, as of such day, of the
portfolio of covered investments owned by such covered
individual that remain in violation of section 13152(a).
``(2) Accrual and limit.--The fee under paragraph (1) shall
accrue for each day of continued noncompliance, except that the
total of such fee may not exceed 50 percent of such fair market
value.
``(b) Trading Violations.--Any covered individual who purchases or
trades a covered investment in violation of section 13152(a) shall, at
the direction of the supervising ethics office--
``(1) pay a fee equal to--
``(A) the value of the covered investment involved
in such purchase or trade, plus
``(B) $10,000; and
``(2) disgorge to the supervising ethics office the profits
of any transaction that violates the provisions of this
subchapter.
``(c) Use of Funds.--A penalty or disgorgement imposed under this
section shall be deposited into the general fund of the Treasury for
the sole purpose of deficit reduction.
``(d) Payment Restrictions.--
``(1) In general.--A covered individual may not pay any
penalty under this section using appropriated funds or any
other official resources of the United States.
``(2) Members of congress.--A Member of Congress as defined
in section 13101 may not pay any of the penalties under this
section by using amounts from the following sources:
``(A) With respect to a Representative in Congress,
a Delegate to Congress, or the Resident Commissioner
from Puerto Rico, the Members' Representational
Allowance.
``(B) With respect to a United States Senator, the
Member's Official Personnel and Office Expense Account.
``(C) Any contribution as defined in section 301(8)
of the Federal Election Campaign Act of 1971 (52 U.S.C.
30101(8)) accepted as a candidate, and any other
donation received as support for activities of the
individual as a holder of Federal office.
``(e) Enforcement Authority.--
``(1) In general.--A supervising ethics office is
authorized to determine, assess, and collect any fee imposed
under subsection (b) against a covered individual subject to
its jurisdiction, and such determination shall constitute final
agency action.
``(2) Investigative authority.--In carrying out this
section, a supervising ethics office may--
``(A) require a covered individual to submit
records sufficient to verify compliance with section
13152, including brokerage statements, trust
instruments and accountings, and transaction
confirmations;
``(B) issue administrative subpoenas to financial
institutions, brokers, dealers, and trustees for
records relevant to a determination under this section;
and
``(C) refer a suspected violation of this
subchapter to the appropriate Inspector General or to
the Attorney General for further investigation.
``(3) Collection.--
``(A) Administrative offset.--A supervising ethics
office may collect a fee assessed under subsection (b)
by administrative offset, in accordance with section
3716 of title 31, against any salary, pension, or other
amount payable by the United States to the covered
individual.
``(B) Referral for civil action.--If a covered
individual fails to pay a fee assessed under such
subsection not later than 60 days after the date of
assessment, the supervising ethics office shall refer
the matter to the Attorney General, who may bring a
civil action in an appropriate district court of the
United States to recover the unpaid amount, together
with interest and the costs of the action.
``(f) Publication.--Each supervising ethics office shall publish on
a publicly available website a description of--
``(1) each fine assessed by the supervising ethics office
pursuant to this section;
``(2) the reason why each such fine was assessed; and
``(3) the result of each assessment.''.
(b) Clerical Amendment.--The table of contents for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
``subchapter iv--restrictions on trade and ownership of covered
investments
``13151. Definitions.
``13152. Trade and ownership of covered investments.
``13153. Penalties.''.
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