II 119th CONGRESS 1st Session S. 2048 IN THE SENATE OF THE UNITED STATES June 12, 2025 Mr. Ricketts introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To prohibit the purchase of certain securities from covered entities, and for other purposes.

1. Short title This Act may be cited as the PRC Military and Human Rights Capital Markets Sanctions Act of 2025 . 2. Prohibition on purchase of certain securities from covered entities (a) Definitions (1) Covered entity (A) In general In this section, the term covered entity means the following: (i) Any entity that is on the list of Specially Designated Nationals and Blocked Persons maintained by the Office of Foreign Assets Control of the Department of the Treasury, or any entity under common ownership or control with such entity. (ii) Any entity on the Non-SDN Chinese Military-Industrial Complex Companies List (commonly known as the NS–CMIC List ) maintained by the Office of Foreign Assets Control of the Department of the Treasury pursuant to Executive Order 13959 ( 50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance communist Chinese military companies), or any entity under common ownership or control with such entity. (iii) Any Chinese military company included on the list maintained by the Department of Defense under section 1260H(b) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ; 10 U.S.C. 113 note) as of the date of the enactment of this Act, or any entity under common ownership or control with such company. (iv) Any Chinese entity with respect to which sanctions have been imposed under the under the Global Magnitsky Human Rights Accountability Act ( 22 U.S.C. 10101 et seq. ), or any entity under common ownership or control with such entity. (v) Any Chinese entity that produces goods that have been the subject of a withhold release order issued pursuant to section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) during the 2-year period ending on the date of the enactment of this Act, or any entity under common ownership or control of such entity. (vi) Any Chinese entity included on the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of title 15, Code of Federal Regulations, or any entity under common ownership or control with such entity. (vii) Any Chinese entity on a list maintained under clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of the Act entitled An Act to ensure that goods made with forced labor in the Xinjiang Autonomous Region of the People’s Republic of China do not enter the United States market, and for other purposes , approved December 23, 2021 ( Public Law 117–78 ; 22 U.S.C. 6901 note) (commonly referred to as the Uyghur Forced Labor Prevention Act ), or any entity under common ownership or control with such entity. (viii) Any Chinese entity on the Military End-User List maintained by the Bureau of Industry and Security and set forth in Supplement No. 7 to part 744 of title 15, Code of Federal Regulations, or any entity under common ownership or control with such entity. (B) Control For purposes of subparagraph (A), the term control has the meaning given the term in section 230.405 of title 17, Code of Federal Regulations. (2) United states person The term United States person means— (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; (B) an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity; or (C) any person in the United States. (b) Prohibition Not later than 90 days after the date of enactment of this Act, the President shall— (1) compile and maintain a single list of covered entities; (2) where possible, include in the list described in paragraph (1) a unique identification number for each covered entity, such as a Committee on Uniform Securities Identification Procedures number or a Stock Exchange Daily Official List number; (3) make the list described in paragraph (1) available to the public; and (4) publicly identify and prohibit the purchase, sale, or holding by a United States person of a— (A) publicly traded security issued by a covered entity; (B) publicly traded security that is derivative of a publicly traded security issued by a covered entity; and (C) security that provides investment exposure to a publicly traded security issued by a covered entity. (c) Divestment required (1) In general Notwithstanding subsection (b), a United States person shall divest of all securities described in subsection (b)— (A) with respect to a security identified by the President under subsection (b) before the end of the 90-day period beginning on the date of enactment of this Act, not later than 180 days after the date of enactment of this Act; and (B) with respect to a security identified by the President under subsection (b) after the end of the 90-day period beginning on the date of enactment of this Act, not later than 180 days after the date of such identification. (2) Facilitating divestment transactions Subsection (b) shall not apply to a United States person to the extent the person is facilitating the divestment of securities described in paragraph (1). (d) Penalties (1) In general A United States person that violates, attempts to violate, conspires to violate, or causes a violation of this Act shall be subject to the following penalties: (A) A civil penalty in an amount not to exceed the greater of— (i) $250,000; or (ii) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed. (B) With respect to a United States person that willfully violates, willfully attempts to violate, willfully conspires to violate, or aids or abets in the commission of a violation of this Act shall be subject to a criminal penalty— (i) of a fine of not more than $1,000,000; or (ii) if such United States person is an individual, a fine of not more than $1,000,000, a term of imprisonment of not more than 20 years, or both. (2) Amount of a transaction defined For purposes of paragraph (1)(A)(ii), the term amount of a transaction means— (A) with respect to a purchase that violates this Act, the purchase price; (B) with respect to a sale that violates this Act, the sale price; and (C) with respect to the holding of a security that violates this Act, the fair market value of the security at the time of the violation.