II 

118TH CONGRESS 

1ST SESSION S. 693 

To amend chapter 131 of title 5, United States Code, to prohibit certain 

executive branch officials from holding individual stocks, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 7, 2023 

Mr. HAWLEY introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To amend chapter 131 of title 5, United States Code, to 

prohibit certain executive branch officials from holding 

individual stocks, 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 ‘‘Eliminating Executive 

5 Branch Insider Trading Act’’. 

6 SEC. 2. SENSE OF CONGRESS. 

7 It is the sense of Congress that executive branch offi8 cials should not have a personal financial interest in the 

9 outcome of Government policy decisions. 


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1 SEC. 3. BANNING INSIDER TRADING IN THE EXECUTIVE 

2 BRANCH. 

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

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘Subchapter IV—Banning Insider Trading in 

7 the Executive Branch 

8 ‘‘§ 13161. Definitions 

9 ‘‘In this subchapter: 

10 ‘‘(1) COVERED FINANCIAL INSTRUMENT.— 

11 ‘‘(A) IN GENERAL.—The term ‘covered fi12 nancial instrument’ 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)); or 

22 ‘‘(ii) any economic interest com23 parable to an interest described in clause 

24 (i) that is acquired through synthetic 

25 means, such as the use of a derivative, inVerDate Sep 11 2014 04:11 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S693.IS S693

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1 cluding an option, warrant, or other simi2 lar means. 

3 ‘‘(B) EXCLUSIONS.—The term ‘covered fi4 nancial instrument’ does not include— 

5 ‘‘(i) a diversified mutual fund; 

6 ‘‘(ii) a diversified exchange-traded 

7 fund; 

8 ‘‘(iii) a United States Treasury bill, 

9 note, or bond; or 

10 ‘‘(iv) compensation from the primary 

11 occupation of a covered individual who is a 

12 spouse or dependent of an individual de13 scribed in subparagraphs (A) through (E) 

14 of paragraph (2). 

15 ‘‘(2) COVERED INDIVIDUAL.—The term ‘cov16 ered individual’ means— 

17 ‘‘(A) the President; 

18 ‘‘(B) the Vice President; 

19 ‘‘(C) each officer or employee in the execu20 tive branch, including a special Government em21 ployee as defined in section 202 of title 18, who 

22 occupies a position classified GS–15 or above of 

23 the General Schedule or, in the case of posi24 tions not under the General Schedule, for which 

25 the rate of basic pay is equal to or greater than 


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1 120 percent of the minimum rate of basic pay 

2 payable for GS–15 of the General Schedule; 

3 ‘‘(D) each member of a uniformed service 

4 whose pay grade is at or in excess of O–7 under 

5 section 201 of title 37; 

6 ‘‘(E) each officer or employee in any other 

7 position determined by the Director of the Of8 fice of Government Ethics to be of equal classi9 fication to the positions described in subpara10 graphs (C) and (D); and 

11 ‘‘(F) the spouse of any individual described 

12 in subparagraphs (A) through (E). 

13 ‘‘(3) QUALIFIED BLIND TRUST.—The term 

14 ‘qualified blind trust’ has the meaning given the 

15 term in section 13104(f)(3). 

16 ‘‘(4) SUPERVISING ETHICS COMMITTEE.—The 

17 term ‘supervising ethics committee’ means, as appli18 cable— 

19 ‘‘(A) the Select Committee on Ethics of 

20 the Senate; and 

21 ‘‘(B) the Committee on Ethics of the 

22 House of Representatives. 


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1 ‘‘§ 13162. Prohibition on certain transactions and 

2 holdings involving covered financial in3 struments 

4 ‘‘(a) PROHIBITION.—Except as provided in sub5 section (b), covered individual, or any spouse of a covered 

6 individual, may not, during the term of service of the cov7 ered individual, hold, purchase, or sell any covered finan8 cial instrument. 

9 ‘‘(b) EXCEPTIONS.—The prohibition under sub10 section (a) shall not apply to— 

11 ‘‘(1) a sale by a covered individual, or a spouse 

12 of a covered individual, that is completed by the date 

13 that is— 

14 ‘‘(A) for a covered individual serving on 

15 the date of enactment of the Eliminating Exec16 utive Branch Insider Trading Act, 180 days 

17 after that date of enactment; and 

18 ‘‘(B) for any covered individual who com19 mences service as a covered individual after the 

20 date of enactment of Eliminating Executive 

21 Branch Insider Trading Act, 180 days after the 

22 first date of the initial term of service; or 

23 ‘‘(2) a covered financial instrument held in a 

24 qualified blind trust operated on behalf of, or for the 

25 benefit of, the covered individual or spouse of the 

26 covered individual. 


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1 ‘‘(c) PENALTIES.— 

2 ‘‘(1) DISGORGEMENT.—A covered individual 

3 shall disgorge to the Treasury of the United States 

4 any profit from a transaction or holding involving a 

5 covered financial instrument that is conducted in 

6 violation of this section. 

7 ‘‘(2) FINES.—A covered individual who holds or 

8 conducts a transaction involving, or whose spouse 

9 holds or conducts a transaction involving, a covered 

10 financial instrument in violation of this section may 

11 be subject to a civil fine assessed by the Attorney 

12 General under section 13163. 

13 ‘‘§ 13163. Civil penalties 

14 ‘‘(a) CIVIL ACTION.—The Attorney General may 

15 bring a civil action in any appropriate United States dis16 trict court against any covered individual who violates any 

17 provision of section 13162. 

18 ‘‘(b) CIVIL PENALTY.—The court in which any action 

19 is brought under subsection (a) may assess against a cov20 ered individual a civil penalty of not more than $10,000 

21 or the amount of compensation, if any, that the covered 

22 individual received for the prohibited conduct, whichever 

23 is greater. 


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1 ‘‘§ 13164. Audit by Government Accountability Office 

2 ‘‘Not later than 2 years after the date of enactment 

3 of the Eliminating Executive Branch Insider Trading Act, 

4 and annually thereafter, the Comptroller General of the 

5 United States shall— 

6 ‘‘(1) conduct an audit of the compliance by a 

7 representative sample of covered individuals with the 

8 requirements of this subchapter; and 

9 ‘‘(2) submit to the supervising ethics commit10 tees a report describing the results of the audit con11 ducted under paragraph (1).’’. 

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

13 for chapter 131 of title 5, United States Code, is amended 

14 by adding at the end the following: 

‘‘SUBCHAPTER IV—BANNING INSIDER TRADING IN CONGRESS

‘‘13161. Definitions. 

‘‘13162. Prohibition on certain transactions and holdings involving covered financial instruments. 

‘‘13163. Civil penalties. 

‘‘13164. Audit by Government Accountability Office.’’. 

Æ 


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