I 

118TH CONGRESS 

1ST SESSION H. R. 1138 

To amend title 5, United States Code, to prohibit transactions involving 

certain financial instruments by Members of Congress and their spouses, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 21, 2023 

Mr. NUNN of Iowa (for himself and Mr. STANTON) introduced the following 

bill; which was referred to the Committee on House Administration, and 

in addition to the Committee on 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 transactions involving certain financial instruments by Members of Congress and their spouses, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prohibit Insider Trad5 ing Act’’. 


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1 SEC. 2. PROHIBITING TRANSACTIONS AND OWNERSHIP OF 

2 CERTAIN FINANCIAL INSTRUMENTS BY MEM3 BERS OF CONGRESS AND THEIR SPOUSES. 

4 (a) IN GENERAL.—Chapter 131 of title 5, United 

5 States Code, is amended by adding after subchapter III 

6 the following: 

7 ‘‘SUBCHAPTER IV—RESTRICTIONS REGARDING 

8 FINANCIAL INSTRUMENTS 

9 ‘‘§ 13151. Definitions 

10 ‘‘In this subchapter— 

11 ‘‘(1) the term ‘covered financial instrument’— 

12 ‘‘(A) means— 

13 ‘‘(i) any investment in— 

14 ‘‘(I) a security (as defined in sec15 tion 3(a) of Securities Exchange Act 

16 of 1934 (15 U.S.C. 78c(a))); 

17 ‘‘(II) a security future (as de18 fined in that section); or 

19 ‘‘(III) a commodity (as defined in 

20 section 1a of the Commodity Ex21 change Act (7 U.S.C. 1a)); and 

22 ‘‘(ii) any economic interest com23 parable to an interest described in sub24 clause (I) that is acquired through syn25 thetic means, such as the use of a derivaVerDate Sep 11 2014 03:30 Mar 11, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1138.IH H1138

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1 tive, including an option, warrant, or other 

2 similar means; and 

3 ‘‘(B) does not include— 

4 ‘‘(i) a diversified mutual fund; 

5 ‘‘(ii) a diversified exchange-traded 

6 fund; 

7 ‘‘(iii) any investment in the Thrift 

8 Savings Plan; or 

9 ‘‘(iv) a United States Treasury bill, 

10 note, or bond; 

11 ‘‘(2) the term ‘Member of Congress’ has the 

12 meaning given that term in section 13101; 

13 ‘‘(3) the term ‘supervising ethics office’ has the 

14 meaning given that term in section 13101; and 

15 ‘‘(4) the term ‘qualified blind trust’ has the 

16 meaning given that term in section 13104(f)(3). 

17 ‘‘§ 13152. Prohibition on certain transactions and 

18 holdings involving covered financial in19 struments 

20 ‘‘(a) PROHIBITION.—Except as provided in sub21 section (b), a Member of Congress and the Member’s 

22 spouse may not, during the term of service of the Member, 

23 hold, purchase, or sell any covered financial instrument. 

24 ‘‘(b) EXCEPTIONS.—The prohibition under sub25 section (a)— 


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1 ‘‘(1) shall begin to apply with respect to a 

2 Member of Congress who commences service as a 

3 Member after the date of enactment of this sub4 chapter on the date that is seven days after the first 

5 date of the initial term of service; and 

6 ‘‘(2) does not apply to a covered financial in7 strument held in a qualified blind trust operated on 

8 behalf of, or for the benefit of, a Member of Con9 gress or the Member’s spouse. 

10 ‘‘(c) PENALTIES.— 

11 ‘‘(1) DISGORGEMENT.—A Member of Congress 

12 and the Member’s spouse shall disgorge to the gen13 eral fund of the Treasury any profit from a trans14 action or holding involving a covered financial in15 strument that is conducted in violation of this sec16 tion. 

17 ‘‘(2) INCOME TAX.—A loss from a transaction 

18 or holding involving a covered financial instrument 

19 that is conducted in violation of this section may not 

20 be deducted from the amount of income tax owed by 

21 the applicable Member of Congress or the Member’s 

22 spouse. 

23 ‘‘(3) FINES.—A Member of Congress who holds 

24 or conducts a transaction involving a covered finan25 cial instrument in violation of this section may be 


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1 subject to a civil fine as described under section 

2 13106(a). 

3 ‘‘§ 13153. Supervising ethics office certification of 

4 compliance and audit 

5 ‘‘(a) CERTIFICATION.— 

6 ‘‘(1) IN GENERAL.—Not later than seven days 

7 after the beginning of any session of Congress, each 

8 Member of Congress shall submit to the supervising 

9 ethics office a written certification that the Member 

10 and the Member’s spouse has achieved compliance 

11 with the requirements of this subchapter. 

12 ‘‘(2) PUBLICATION.—The supervising ethics of13 fice shall publish each certification submitted under 

14 paragraph (1) on a publicly available website. 

15 ‘‘(b) AUDIT.—Not less than every two years, the su16 pervising ethics office shall conduct an audit of the compli17 ance by Members of Congress with the requirements of 

18 this subchapter.’’. 

19 (b) CLERICAL AMENDMENT.—The table of sections 

20 for such chapter 131 is amended by inserting after the 

21 item relating to section 13146 the following: 

‘‘SUBCHAPTER IV—RESTRICTIONS REGARDING FINANCIAL INSTRUMENTS

‘‘13151. Definitions. 

‘‘13152. Prohibition on certain transactions and holdings involving covered financial instruments. 

‘‘13153. Supervising ethics office certification of compliance and audit.’’. 


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1 (c) APPLICATION.—The amendments made by sub2 section (a) shall begin to apply to Members of Congress 

3 and their spouses on the first day of the second session 

4 of the One Hundred Eighteenth Congress. 

Æ 


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