S. 2877: No Stock Act

This bill, known as the No Stock Act, aims to prohibit certain senior government officials and their families from trading stocks and other financial interests to avoid potential conflicts of interest. The bill applies to various high-ranking members of the government, including Members of Congress, the President, the Vice President, Supreme Court Justices, and Federal Reserve officials.

Key Provisions of the Bill

• Banning Conflicted Interests: Individuals defined as "covered individuals" under this bill cannot hold, purchase, sell, or conduct any transactions related to specific financial interests, including stocks, bonds, futures, commodities, and cryptocurrencies.
• Covered Financial Interests: The bill defines a "covered financial interest" as any investment in securities, futures, commodities, or cryptocurrencies. Certain exceptions apply, such as investments in diversified registered investment funds and U.S. Treasury securities.
• Dependents: The bill also covers the spouses and dependent children of these officials, meaning they are subject to the same restrictions.
• Prohibitions on Positions: Covered individuals are not allowed to serve as officers or board members for any for-profit entity, reinforcing the intent to prevent conflicts of interest.

Divestiture Requirements

Under the bill, if a covered individual holds any impacted financial interest at the time they assume their position or upon enactment of this act, they are required to sell that interest within 120 days.

Cooling-Off Period

After leaving their position, individuals must refrain from engaging in any of the prohibited activities for an additional 120 days.

Compliance and Enforcement

• Certifications: Covered individuals must certify their compliance with these rules to a supervising ethics office.
• Fines for Non-compliance: Those who knowingly violate the stipulations could face fines of at least 10% of the value of any covered financial interest involved in the violation.

Publication and Transparency

The supervising ethics office is required to publicly post requests for extensions concerning the sale of financial interests and the outcomes of those requests, maintaining transparency in the process.

Applicable Financial Interests

The definition of "covered financial interests" is broad, including a variety of assets like securities, commodities, options, and other derivative contracts. However, it explicitly excludes certain interest types such as U.S. Treasury securities and payment stablecoins under specific conditions.

Impact on Future Inheritances

Individuals who inherit covered financial interests must also sell them within a prescribed period or potentially seek extensions justified by the supervising ethics office.

Relevant Companies

• None found