II 

117TH CONGRESS 

2D SESSION S. 3494 

To amend the Ethics in Government Act of 1978 to require Members of 

Congress and their spouses and dependents to place certain assets into 

blind trusts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 12 (legislative day, JANUARY 10), 2022 

Mr. OSSOFF (for himself and Mr. KELLY) introduced the following bill; which 

was read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

A BILL 

To amend the Ethics in Government Act of 1978 to require 

Members of Congress and their spouses and dependents 

to place certain assets into blind trusts, 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 ‘‘Ban Congressional 

5 Stock Trading Act’’. 


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1 SEC. 2. PLACEMENT OF CERTAIN ASSETS OF MEMBERS OF 

2 CONGRESS, SPOUSES, AND DEPENDENTS IN 

3 QUALIFIED BLIND TRUSTS. 

4 The Ethics in Government Act of 1978 (5 U.S.C. 

5 App.) is amended by inserting after title I the following: 

6 ‘‘TITLE II—CERTAIN ASSETS OF 

7 MEMBERS OF CONGRESS, 

8 SPOUSES, AND DEPENDENTS 

9 ‘‘SEC. 201. DEFINITIONS. 

10 ‘‘In this title: 

11 ‘‘(1) COMMODITY.—The term ‘commodity’ has 

12 the meaning given the term in section 1a of the 

13 Commodity Exchange Act (7 U.S.C. 1a). 

14 ‘‘(2) COVERED INVESTMENT.— 

15 ‘‘(A) IN GENERAL.—The term ‘covered in16 vestment’ means— 

17 ‘‘(i) an investment in a security, a 

18 commodity, or a future; and 

19 ‘‘(ii) any economic interest com20 parable to an interest described in clause 

21 (i) that is acquired through synthetic 

22 means, such as the use of a derivative, in23 cluding an option, warrant, or other, simi24 lar means. 

25 ‘‘(B) INCLUSIONS.—The term ‘covered in26 vestment’ includes an investment or economic 


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1 interest described in subparagraph (A) that is 

2 held directly, or in which an individual has an 

3 indirect, beneficial, or economic interest, 

4 through— 

5 ‘‘(i) an investment fund; 

6 ‘‘(ii) a trust (other than a qualified 

7 blind trust); 

8 ‘‘(iii) an employee benefit plan; or 

9 ‘‘(iv) a deferred compensation plan, 

10 including a carried interest or other agree11 ment tied to the performance of an invest12 ment, other than a fixed cash payment. 

13 ‘‘(C) EXCLUSIONS.—The term ‘covered in14 vestment’ does not include— 

15 ‘‘(i) a diversified mutual fund (includ16 ing any holdings of such a fund); 

17 ‘‘(ii) a diversified exchange-traded 

18 fund (including any holdings of such a 

19 fund); 

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

21 note, or bond; 

22 ‘‘(iv) compensation from the primary 

23 occupation of a spouse or dependent of a 

24 Member of Congress; or 


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1 ‘‘(v) any investment fund held in a 

2 Federal, State, or local government em3 ployee retirement plan. 

4 ‘‘(D) CLARIFICATION.—An investment that 

5 achieves compliance with applicable environ6 mental, social, and governance criteria shall not 

7 be considered to be a covered investment solely 

8 by reason of that compliance. 

9 ‘‘(3) CURRENT.—The term ‘current’, with re10 spect to a Member of Congress, means an individual 

11 who is serving as a Member of Congress on the date 

12 of enactment of the Ban Congressional Stock Trad13 ing Act. 

14 ‘‘(4) DEPENDENT.—The term ‘dependent’, with 

15 respect to an individual, means a child or other rel16 ative who is a resident of the immediate household 

17 of the individual. 

18 ‘‘(5) DIVERSIFIED.—The term ‘diversified’, 

19 with respect to a fund, trust, or plan, means that 

20 the fund, trust, or plan does not have a stated policy 

21 of concentrating its investments in any industry, 

22 business, single country other than the United 

23 States, or bonds of a single State. 

24 ‘‘(6) FUTURE.—The term ‘future’ means— 


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1 ‘‘(A) a security future (as defined in sec2 tion 3(a) of the Securities Exchange Act of 

3 1934 (15 U.S.C. 78c(a))); and 

4 ‘‘(B) any other contract for the sale of a 

5 commodity for future delivery. 

6 ‘‘(7) INITIAL PROPERTY.—The term ‘initial 

7 property’ means an asset or financial interest trans8 ferred to a qualified blind trust by, or on behalf of, 

9 an interested party or a relative of an interested 

10 party, regardless of whether the asset or financial 

11 interest is transferred to the qualified blind trust on 

12 or after the date of establishment of the qualified 

13 blind trust. 

14 ‘‘(8) INTERESTED PARTY.—The term ‘inter15 ested party’ has the meaning given the term in sec16 tion 102(f)(3)(E). 

17 ‘‘(9) MEMBER OF CONGRESS.—The term ‘Mem18 ber of Congress’ has the meaning given the term in 

19 section 109. 

20 ‘‘(10) NEW.—The term ‘new’, with respect to a 

21 Member of Congress, means an individual who— 

22 ‘‘(A) is not a current Member of Congress; 

23 but 


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1 ‘‘(B) commences service as a Member of 

2 Congress after the date of enactment of the 

3 Ban Congressional Stock Trading Act. 

4 ‘‘(11) QUALIFIED BLIND TRUST.—The term 

5 ‘qualified blind trust’ means a qualified blind trust 

6 (as defined in section 102(f)(3)) that has been ap7 proved in writing by the applicable supervising ethics 

8 office under section 102(f)(3)(D). 

9 ‘‘(12) SECURITY.—The term ‘security’ has the 

10 meaning given the term in section 3(a) of the Secu11 rities Exchange Act of 1934 (15 U.S.C. 78c(a)). 

12 ‘‘(13) SUPERVISING ETHICS OFFICE.—The term 

13 ‘supervising ethics office’ has the meaning given the 

14 term in section 109. 

15 ‘‘SEC. 202. PLACEMENT OF CERTAIN ASSETS IN QUALIFIED 

16 BLIND TRUSTS. 

17 ‘‘(a) CURRENT MEMBERS OF CONGRESS.— 

18 ‘‘(1) CERTIFICATION.—Not later than 30 days 

19 after the date of enactment of the Ban Congres20 sional Stock Trading Act, each current Member of 

21 Congress shall submit to the applicable supervising 

22 ethics office a certification that, as applicable— 

23 ‘‘(A) for each covered investment owned by 

24 the Member of Congress or a spouse or depend25 ent of the Member of Congress, the Member of 


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1 Congress, or the applicable spouse or dependent 

2 of the Member of Congress, will— 

3 ‘‘(i) divest the covered investment; or 

4 ‘‘(ii) place the covered investment in a 

5 qualified blind trust, including by estab6 lishing a qualified blind trust for that pur7 pose, if necessary; or 

8 ‘‘(B) neither the Member of Congress nor 

9 any spouse or dependent of the Member of Con10 gress owns a covered investment. 

11 ‘‘(2) DIVESTITURE OR PLACEMENT IN QUALI12 FIED BLIND TRUST.— 

13 ‘‘(A) REQUIREMENT.—Subject to para14 graph (3), not later than 120 days after the 

15 date of enactment of the Ban Congressional 

16 Stock Trading Act, each current Member of 

17 Congress shall divest, or place in a qualified 

18 blind trust (including by establishing a qualified 

19 blind trust for that purpose, if necessary), each 

20 covered investment owned by the Member of 

21 Congress or a spouse or dependent of the Mem22 ber of Congress. 

23 ‘‘(B) DIVESTITURE.—A current Member of 

24 Congress shall divest a covered investment held 


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1 by the Member of Congress or a spouse or de2 pendent of the Member of Congress if— 

3 ‘‘(i) the Member of Congress, or the 

4 applicable spouse or dependent of the 

5 Member of Congress, is unable to place the 

6 covered investment in a qualified blind 

7 trust by the date described in subpara8 graph (A); and 

9 ‘‘(ii) the Member of Congress fails to 

10 obtain an extension pursuant to paragraph 

11 (3). 

12 ‘‘(3) EXTENSIONS.—If a current Member of 

13 Congress, or a spouse or dependent of the Member 

14 of Congress, is unable to place a covered investment 

15 in a qualified blind trust by the date described in 

16 paragraph (2)(A), the Member of Congress may re17 quest, and the supervising ethics office may grant, 

18 1 or more reasonable extensions, subject to the con19 ditions that— 

20 ‘‘(A) the total period of time covered by all 

21 extensions granted to the Member of Congress 

22 for the covered investment shall not exceed 180 

23 days; and 

24 ‘‘(B) the period covered by a single exten25 sion shall be not longer than 45 days. 


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1 ‘‘(b) NEW MEMBERS OF CONGRESS.— 

2 ‘‘(1) CERTIFICATION.—Not later than 30 days 

3 after the date on which an individual becomes a new 

4 Member of Congress, the new Member of Congress 

5 shall submit to the applicable supervising ethics of6 fice a certification that, as applicable— 

7 ‘‘(A) for each covered investment owned by 

8 the Member of Congress or a spouse or depend9 ent of the Member of Congress, the Member of 

10 Congress, or the applicable spouse or dependent 

11 of the Member of Congress, will— 

12 ‘‘(i) divest the covered investment; or 

13 ‘‘(ii) place the covered investment in a 

14 qualified blind trust, including by estab15 lishing a qualified blind trust for that pur16 pose, if necessary; or 

17 ‘‘(B) neither the Member of Congress nor 

18 a spouse or dependent of the Member of Con19 gress owns a covered investment. 

20 ‘‘(2) DIVESTITURE OR PLACEMENT IN QUALI21 FIED BLIND TRUST.— 

22 ‘‘(A) REQUIREMENT.—Subject to para23 graph (3), not later than 120 days after the 

24 date on which an individual becomes a new 

25 Member of Congress, the individual shall divest, 


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1 or place in a qualified blind trust (including by 

2 establishing a qualified blind trust for that pur3 pose, if necessary), each covered investment 

4 owned by the Member of Congress or a spouse 

5 or dependent of the Member of Congress. 

6 ‘‘(B) DIVESTITURE.—A new Member of 

7 Congress shall divest a covered investment held 

8 by the Member of Congress or a spouse or de9 pendent of the Member of Congress if— 

10 ‘‘(i) the Member of Congress, or the 

11 applicable spouse or dependent of the 

12 Member of Congress, is unable to place the 

13 covered investment in a qualified blind 

14 trust by the date described in subpara15 graph (A); and 

16 ‘‘(ii) the Member of Congress fails to 

17 obtain an extension pursuant to paragraph 

18 (3). 

19 ‘‘(3) EXTENSIONS.—If a new Member of Con20 gress, or a spouse or dependent of the Member of 

21 Congress, is unable to place a covered investment in 

22 a qualified blind trust by the date described in para23 graph (2)(A), the Member of Congress may request, 

24 and the supervising ethics office may grant, 1 or 


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1 more reasonable extensions, subject to the conditions 

2 that— 

3 ‘‘(A) the total period of time covered by all 

4 extensions granted to the Member of Congress 

5 for the covered investment shall not exceed 180 

6 days; and 

7 ‘‘(B) the period covered by a single exten8 sion shall be not longer than 45 days. 

9 ‘‘(c) ACQUISITIONS DURING SERVICE.— 

10 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

11 and any applicable rules issued pursuant to sub12 section (h)(3), effective beginning on the date of en13 actment of the Ban Congressional Stock Trading 

14 Act, a Member of Congress, and a spouse or depend15 ent of the Member of Congress, may not acquire a 

16 covered investment. 

17 ‘‘(2) INHERITANCES.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), a Member of Congress or a spouse 

20 or dependent of a Member of Congress who in21 herits a covered investment shall divest or place 

22 the covered investment in a qualified blind trust 

23 by not later than 120 days after the date on 

24 which the covered investment is inherited. 


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1 ‘‘(B) EXTENSIONS.—If a Member of Con2 gress, or a spouse or dependent of the Member 

3 of Congress, is unable to place a covered invest4 ment in a qualified blind trust by the date de5 scribed in subparagraph (A), the Member of 

6 Congress may request, and the supervising eth7 ics office may grant, 1 or more reasonable ex8 tensions, subject to the conditions that— 

9 ‘‘(i) the total period of time covered 

10 by all extensions granted to the Member of 

11 Congress for the covered investment shall 

12 not exceed 180 days; and 

13 ‘‘(ii) the period covered by a single ex14 tension shall be not longer than 45 days. 

15 ‘‘(d) MINGLING OF ASSETS.—A spouse or dependent 

16 of a Member of Congress may place a covered investment 

17 in a qualified blind trust established by the Member of 

18 Congress under subsection (a)(1)(A)(ii) or (b)(1)(A)(ii). 

19 ‘‘(e) SEPARATION FROM SERVICE AND COOLING-OFF

20 PERIOD REQUIRED FOR CONTROL.—During the period 

21 beginning on the date on which an individual becomes a 

22 Member of Congress and ending on the date that is 180 

23 days after the date on which the individual ceases to serve 

24 as a Member of Congress, the Member of Congress, and 


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1 any spouse or dependent of the Member of Congress, may 

2 not— 

3 ‘‘(1) dissolve any qualified blind trust in which 

4 a covered investment has been placed pursuant to 

5 subsection (a), (b), (c)(2), or (d); or 

6 ‘‘(2) except as provided in this section, other7 wise control a covered investment. 

8 ‘‘(f) REPORTING REQUIREMENTS.— 

9 ‘‘(1) SUPERVISING ETHICS OFFICES.—Each su10 pervising ethics office shall make available on the 

11 public website of the supervising ethics office— 

12 ‘‘(A) a copy of— 

13 ‘‘(i) each certification submitted to 

14 the supervising ethics office under sub15 section (a)(1) or (b)(1); 

16 ‘‘(ii) each qualified blind trust agree17 ment of each Member of Congress; 

18 ‘‘(iii) each notice and other docu19 mentation submitted to the supervising 

20 ethics office under paragraph (2) or (3); 

21 and 

22 ‘‘(iv) each notice, rule, and other doc23 umentation issued or received by the su24 pervising ethics office under subsection (g); 


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1 ‘‘(B) a schedule of all assets placed in a 

2 qualified blind trust by each Member of Con3 gress and interested party; and 

4 ‘‘(C) a description of each extension grant5 ed, and each civil penalty imposed, pursuant to 

6 this section. 

7 ‘‘(2) TRUSTEES.—Each trustee of a qualified 

8 blind trust established by a Member of Congress 

9 shall submit to the Member of Congress and the ap10 plicable supervising ethics office a written notice in 

11 any case in which the trustee— 

12 ‘‘(A) learns that— 

13 ‘‘(i) an interested party has obtained 

14 knowledge of any trust property other than 

15 the initial property of the qualified blind 

16 trust; or 

17 ‘‘(ii) the value of the initial property 

18 of the qualified blind trust is less than 

19 $1,000; or 

20 ‘‘(B) divests any initial property of the 

21 qualified blind trust. 

22 ‘‘(3) MEMBERS OF CONGRESS.—Each Member 

23 of Congress who is a beneficiary of a qualified blind 

24 trust shall submit to the applicable supervising eth25 ics office— 


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1 ‘‘(A) a copy of the executed qualified blind 

2 trust agreement by not later than 30 days after 

3 the date of execution; 

4 ‘‘(B) a list of each asset and each financial 

5 interest transferred to the qualified blind trust 

6 by an interested party by not later than 30 

7 days after the date of the transfer; 

8 ‘‘(C) a copy of each notice submitted to the 

9 Member of Congress under paragraph (2) by 

10 not later than 30 days after the date of receipt; 

11 ‘‘(D) a written notice that an interested 

12 party has obtained knowledge of any holding of 

13 the qualified blind trust by not later than the 

14 date that is 30 days after the date on which the 

15 Member of Congress discovered that the knowl16 edge had been obtained; and 

17 ‘‘(E) a written notice of dissolution of the 

18 qualified blind trust by not later than 30 days 

19 after the date of dissolution. 

20 ‘‘(g) ENFORCEMENT.— 

21 ‘‘(1) IN GENERAL.—The applicable supervising 

22 ethics office shall provide a written notice (including 

23 notice of the potential for civil penalties under para24 graph (2)) to any Member of Congress who fails— 


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1 ‘‘(A) to submit a certification under sub2 section (a)(1) or (b)(1) by the date on which 

3 the certification is required to be submitted; or 

4 ‘‘(B) to place 1 or more covered invest5 ments owned by the Member of Congress or a 

6 spouse or dependent of the Member of Congress 

7 in a qualified blind trust in accordance with 

8 subsection (a)(2), (b)(2), (c)(2)(C)(i)(II), or 

9 (c)(2)(A) by the applicable deadline, subject to 

10 any extension under subsection (a)(3), (b)(3), 

11 or (c)(2)(B). 

12 ‘‘(2) CIVIL PENALTIES.— 

13 ‘‘(A) IN GENERAL.—A supervising ethics 

14 office shall impose a civil penalty, in the 

15 amount described in subparagraph (B), on a 

16 Member of Congress to whom a notice is pro17 vided under subparagraph (A) or (B) of para18 graph (1)— 

19 ‘‘(i) on the date that is 30 days after 

20 the date of provision of the notice; and 

21 ‘‘(ii) not less frequently than once 

22 every 30 days thereafter. 

23 ‘‘(B) AMOUNT.—The amount of each civil 

24 penalty imposed on a Member of Congress pur25 suant to subparagraph (A) shall be equal to the 


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1 monthly equivalent of the annual rate of pay 

2 payable to the Member of Congress. 

3 ‘‘(h) AUTHORIZATION OF SUPERVISING ETHICS OF4 FICES.—Each supervising ethics office in the legislative 

5 branch may— 

6 ‘‘(1) impose and collect civil penalties in accord7 ance with subsection (g); 

8 ‘‘(2) establish such procedures and standard 

9 forms as the supervising ethics office determines to 

10 be appropriate to implement this section; 

11 ‘‘(3) issue rules in accordance with this section 

12 to establish new, and supplement existing, defini13 tions applicable to this section; and 

14 ‘‘(4) publish on a website all documents and 

15 communications described in this subsection.’’. 

Æ 


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