I 
116TH CONGRESS 
2D SESSION 
H. R. 6401 
To prohibit Members of Congress from purchasing or selling certain 
investments, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 26, 2020 
Mr. KRISHNAMOORTHI (for himself, Ms. OCASIO-CORTEZ, and Mr. NEGUSE) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services, and in addition to the Committees on Agriculture, and 
House Administration, 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 prohibit Members of Congress from purchasing or selling 
certain investments, and for other purposes. 
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 ‘‘Ban Conflicted Trad-
ing Act’’. 
SEC. 2. DEFINITIONS. 
In this Act— 
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(1) the term ‘‘commodity’’ has the meaning 
given the term in section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a); 
(2) the term ‘‘covered investment’’— 
(A) means investment in a security, a com-
modity, or a future, or any comparable eco-
nomic interest acquired through synthetic 
means such as the use of a derivative; and 
(B) does not include— 
(i) a widely held investment fund de-
scribed in section 102(f)(8) of the Ethics 
in Government Act of 1978 (5 U.S.C. 
App.); or 
(ii) a United States Treasury bill, 
note, or bond; 
(3) the term ‘‘covered person’’ means— 
(A) a sitting Member of Congress; and 
(B) an individual employed as an officer or 
employee of Congress required to file a report 
under the Ethics in Government Act of 1978 (5 
U.S.C. App.); 
(4) the term ‘‘future’’ means a financial con-
tract obligating the buyer to purchase an asset or 
the seller to sell an asset, such as a physical com-
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modity or a financial instrument, at a predetermined 
future date and price; and 
(5) the term ‘‘security’’ has the meaning given 
the term in section 3(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)). 
SEC. 3. PROHIBITIONS. 
(a) TRANSACTIONS.—Except as provided in sections 
4 and 5, no covered person may— 
(1) purchase or sell any covered investment; or 
(2) enter into a transaction that creates a net 
short position in any security. 
(b) POSITIONS.—A covered person may not serve as 
an officer or member of any board of any for-profit asso-
ciation, corporation, or other entity. 
SEC. 4. EXCEPTIONS. 
(a) INVESTMENTS
HELD
BEFORE
TAKING
OF-
FICE.— 
(1) IN GENERAL.—A covered person may have 
control over or knowledge of the management of any 
covered investment held by the covered person as of 
the day before the date on which the covered person 
took office. 
(2) PROHIBITION
ON
PURCHASING
OR
SELL-
ING.—A covered person may not buy or sell any in-
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vestment described in paragraph (1) except in the 
case of— 
(A) placing the investment in a qualified 
blind trust described in section 5; or 
(B) divesting themselves of any investment 
under subsection (b). 
(b) DIVESTITURE.—A covered person may sell a cov-
ered investment during the 6-month period beginning 
on— 
(1) the date on which the covered person takes 
office or begins employment, as applicable; or 
(2) the date of enactment of this Act. 
SEC. 5. TRUSTS. 
(a) IN GENERAL.—On a case-by-case basis, the Se-
lect Committee on Ethics may authorize a covered person 
to place their securities holdings in a qualified blind trust 
approved by the committee under section 102(f) of the 
Ethics in Government Act of 1978 (5 U.S.C. App.). 
(b) BLIND TRUST.—A blind trust permitted under 
this subsection shall meet the criteria in section 
102(f)(4)(B) of the Ethics in Government Act of 1978 (5 
U.S.C. App.), unless an alternative arrangement is ap-
proved by the Select Committee on Ethics. 
SEC. 6. ADMINISTRATION AND ENFORCEMENT. 
(a) ADMINISTRATION.— 
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(1) IN GENERAL.—The provisions of this Act 
shall be administered by the Select Committee on 
Ethics of the Senate and the Committee on Ethics 
of the House of Representatives. 
(2) GUIDANCE.—The Select Committee on Eth-
ics of the Senate and the Committee on Ethics of 
the House of Representatives are authorized to issue 
guidance on any matter contained in this Act, in-
cluding— 
(A) whether a covered person may hold an 
employee stock option, or similar instrument, 
that had not vested before the date on which 
the covered person was elected; and 
(B) the process and timeline for when a 
covered person shall no longer serve as an offi-
cer or member of any board of any for-profit 
association, corporation, or other entity. 
(b) ENFORCEMENT.—Whoever knowingly fails to 
comply with this Act shall be subject to a civil penalty 
of not less than 10 percent of the value of the covered 
investment that was purchased or sold or the security in 
which a net short position was created in violation of this 
Act, as applicable. 
Æ 
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