‘‘Subchapter IV—Banning Insider Trading in 
Congress 
‘‘§ 13161. Definitions 
‘‘In this subchapter: 
‘‘(1) COVERED FINANCIAL INSTRUMENT.— 
‘‘(A) IN GENERAL.—The term ‘covered fi-
nancial instrument’ means— 
‘‘(i) any investment in— 
‘‘(I) a security (as defined in sec-
tion 3(a) of Securities Exchange Act 
of 1934 (15 U.S.C. 78c(a))); 
‘‘(II) a security future (as de-
fined in that section); or 
‘‘(III) a commodity (as defined in 
section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a)); and 
‘‘(ii) any economic interest com-
parable to an interest described in clause 
(i) that is acquired through synthetic 
means, such as the use of a derivative, in-
cluding an option, a warrant, or other 
similar means. 
‘‘(B) EXCLUSIONS.—The term ‘covered fi-
nancial instrument’ does not include— 
‘‘(i) a diversified mutual fund; 
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‘‘(ii) a diversified exchange-traded 
fund; 
‘‘(iii) a United States Treasury bill, 
note, or bond; or 
‘‘(iv) compensation from the primary 
occupation of a spouse or dependent child 
of a Member of Congress. 
‘‘(2) DEPENDENT
CHILD; MEMBER
OF
CON-
GRESS.—The terms ‘dependent child’ and ‘Member 
of Congress’ have the meanings given those terms in 
section 13101. 
‘‘(3) SUPERVISING
ETHICS
COMMITTEE.—The 
term ‘supervising ethics committee’ means, as appli-
cable— 
‘‘(A) the Select Committee on Ethics of 
the Senate; and 
‘‘(B) the Committee on Ethics of the 
House of Representatives. 
‘‘§ 13162. Prohibition on certain transactions and 
holdings involving covered financial in-
struments 
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), a Member of Congress, or any spouse of a 
Member of Congress, may not, during the term of service 
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of the Member of Congress, hold, purchase, or sell any 
covered financial instrument. 
‘‘(b) EXCEPTIONS.—The prohibition under sub-
section (a) shall not apply to a sale by a Member of Con-
gress, or a spouse of a Member of Congress, that is com-
pleted by the date that is— 
‘‘(1) for a Member of Congress serving on the 
date of enactment of the Preventing Elected Leaders 
from Owning Securities and Investments (PELOSI) 
Act, 180 days after that date of enactment; and 
‘‘(2) for any Member of Congress who com-
mences service as a Member of Congress after the 
date of enactment of the Preventing Elected Leaders 
from Owning Securities and Investments (PELOSI) 
Act, 180 days after the first date of the initial term 
of service. 
‘‘(c) PENALTIES.— 
‘‘(1) DISGORGEMENT.—A Member of Congress 
shall disgorge to the Treasury of the United States 
any profit from a transaction or holding involving a 
covered financial instrument that is conducted in 
violation of this section. 
‘‘(2) FINES.—A Member of Congress who holds 
or conducts a transaction involving, or whose spouse 
holds or conducts a transaction involving, a covered 
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financial instrument in violation of this section may 
be subject to a civil fine assessed by the applicable 
supervising ethics committee under section 13164. 
‘‘§ 13163. Certification of compliance 
‘‘(a) IN GENERAL.—Not less frequently than annu-
ally, each Member of Congress shall submit to the applica-
ble supervising ethics committee a written certification 
that the Member of Congress has achieved compliance 
with the requirements of this subchapter. 
‘‘(b) PUBLICATION.—The supervising ethics commit-
tees shall publish each certification submitted under sub-
section (a) on a publicly available website. 
‘‘§ 13164. Authority of supervising ethics committees 
‘‘(a) IN GENERAL.—The supervising ethics commit-
tees may implement and enforce the requirements of this 
subchapter, including by— 
‘‘(1) issuing— 
‘‘(A) for Members of Congress— 
‘‘(i) rules governing that implementa-
tion; and 
‘‘(ii) 1 or more reasonable extensions 
to achieve compliance with this subchapter, 
if the applicable supervising ethics com-
mittee determines that a Member of Con-
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gress is making a good faith effort to di-
vest any covered financial instruments; and 
‘‘(B) guidance relating to covered financial 
instruments; 
‘‘(2) publishing on the internet certifications 
submitted by Members of Congress under section 
13163(a); and 
‘‘(3) assessing civil fines against any Member of 
Congress who is in violation of this subchapter, sub-
ject to subsection (b). 
‘‘(b) REQUIREMENTS FOR CIVIL FINES.— 
‘‘(1) IN GENERAL.—Before imposing a fine pur-
suant to this section, the applicable supervising eth-
ics committee shall provide to the applicable Member 
of Congress— 
‘‘(A) a written notice describing each cov-
ered financial instrument transaction for which 
a fine will be assessed; and 
‘‘(B) an opportunity, with respect to each 
such covered financial instrument transaction— 
‘‘(i) for a hearing; and 
‘‘(ii) to achieve compliance with the 
requirements of this subchapter. 
‘‘(2) ENFORCEMENT.— 
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‘‘(A) IN GENERAL.—In the event of con-
tinuing noncompliance after issuance of the no-
tice described in paragraph (1), the applicable 
supervising ethics committee shall impose a civil 
penalty, in the amount described in subpara-
graph (B), on the Member of Congress to whom 
a notice was provided— 
‘‘(i) on the date that is 30 days after 
the date of provision of the notice; and 
‘‘(ii) during the period in which such 
noncompliance continues, not less fre-
quently than once every 30 days thereafter. 
‘‘(B) AMOUNT.—The amount of each civil 
penalty imposed on a Member of Congress pur-
suant to subparagraph (A) shall be an amount 
equal to 10 percent of the value of each covered 
financial instrument that was not divested in 
violation of this subchapter during the period 
covered by the penalty. 
‘‘(3) PUBLICATION.—Each supervising ethics 
committee shall publish on a publicly available 
website a description of— 
‘‘(A) each fine assessed by the supervising 
ethics committee pursuant to this section; 
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