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 sub-
sequently 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 trans-
actions involving certain financial instruments by Mem-
bers of Congress and their spouses, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prohibit Insider Trad-
ing Act’’. 
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SEC. 2. PROHIBITING TRANSACTIONS AND OWNERSHIP OF 
CERTAIN FINANCIAL INSTRUMENTS BY MEM-
BERS OF CONGRESS AND THEIR SPOUSES. 
(a) IN GENERAL.—Chapter 131 of title 5, United 
States Code, is amended by adding after subchapter III 
the following: 
‘‘SUBCHAPTER IV—RESTRICTIONS REGARDING 
FINANCIAL INSTRUMENTS 
‘‘§ 13151. Definitions 
‘‘In this subchapter— 
‘‘(1) the term ‘covered financial instrument’— 
‘‘(A) 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 sub-
clause (I) that is acquired through syn-
thetic means, such as the use of a deriva-
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tive, including an option, warrant, or other 
similar means; and 
‘‘(B) does not include— 
‘‘(i) a diversified mutual fund; 
‘‘(ii) a diversified exchange-traded 
fund; 
‘‘(iii) any investment in the Thrift 
Savings Plan; or 
‘‘(iv) a United States Treasury bill, 
note, or bond; 
‘‘(2) the term ‘Member of Congress’ has the 
meaning given that term in section 13101; 
‘‘(3) the term ‘supervising ethics office’ has the 
meaning given that term in section 13101; and 
‘‘(4) the term ‘qualified blind trust’ has the 
meaning given that term in section 13104(f)(3). 
‘‘§ 13152. Prohibition on certain transactions and 
holdings involving covered financial in-
struments 
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), a Member of Congress and the Member’s 
spouse may not, during the term of service of the Member, 
hold, purchase, or sell any covered financial instrument. 
‘‘(b) EXCEPTIONS.—The prohibition under sub-
section (a)— 
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‘‘(1) shall begin to apply with respect to a 
Member of Congress who commences service as a 
Member after the date of enactment of this sub-
chapter on the date that is seven days after the first 
date of the initial term of service; and 
‘‘(2) does not apply to a covered financial in-
strument held in a qualified blind trust operated on 
behalf of, or for the benefit of, a Member of Con-
gress or the Member’s spouse. 
‘‘(c) PENALTIES.— 
‘‘(1) DISGORGEMENT.—A Member of Congress 
and the Member’s spouse shall disgorge to the gen-
eral fund of the Treasury any profit from a trans-
action or holding involving a covered financial in-
strument that is conducted in violation of this sec-
tion. 
‘‘(2) INCOME TAX.—A loss from a transaction 
or holding involving a covered financial instrument 
that is conducted in violation of this section may not 
be deducted from the amount of income tax owed by 
the applicable Member of Congress or the Member’s 
spouse. 
‘‘(3) FINES.—A Member of Congress who holds 
or conducts a transaction involving a covered finan-
cial instrument in violation of this section may be 
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subject to a civil fine as described under section 
13106(a). 
‘‘§ 13153. Supervising ethics office certification of 
compliance and audit 
‘‘(a) CERTIFICATION.— 
‘‘(1) IN GENERAL.—Not later than seven days 
after the beginning of any session of Congress, each 
Member of Congress shall submit to the supervising 
ethics office a written certification that the Member 
and the Member’s spouse has achieved compliance 
with the requirements of this subchapter. 
‘‘(2) PUBLICATION.—The supervising ethics of-
fice shall publish each certification submitted under 
paragraph (1) on a publicly available website. 
‘‘(b) AUDIT.—Not less than every two years, the su-
pervising ethics office shall conduct an audit of the compli-
ance by Members of Congress with the requirements of 
this subchapter.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such chapter 131 is amended by inserting after the 
item relating to section 13146 the following: 
‘‘SUBCHAPTER IV—RESTRICTIONS REGARDING FINANCIAL INSTRUMENTS 
‘‘13151. Definitions. 
‘‘13152. Prohibition on certain transactions and holdings involving covered fi-
nancial instruments. 
‘‘13153. Supervising ethics office certification of compliance and audit.’’. 
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(c) APPLICATION.—The amendments made by sub-
section (a) shall begin to apply to Members of Congress 
and their spouses on the first day of the second session 
of the One Hundred Eighteenth Congress. 
Æ 
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