119-s1620

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1620 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1620

 To amend chapter 131 of title 5, United States Code, with respect to 
 prohibited financial transactions, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 May 6, 2025

 Mr. Murphy introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

 A BILL

 To amend chapter 131 of title 5, United States Code, with respect to 
 prohibited financial transactions, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Modern Emoluments and Malfeasance 
Enforcement Act'' or the ``MEME Act''.

SEC. 2. SENSE OF CONGRESS.

 It is the sense of Congress that--

    (1) federally elected officials must not utilize those 
 positions, granted by the trust of the public, for private 
 financial gain;

    (2) the issuance, sponsorship, or promotion of financial 
 instruments by public office holders deprives the public of the 
 honest services of the public office holders, facilitates 
 bribery by investors or purchasers, and results in public 
 exploitation and corrupt foreign influence; and

    (3) Members of Congress and the executive branch must not 
 seek to use public office to benefit financially, but rather 
 those positions should be held in trust for the benefit of the 
 public in the United States.

SEC. 3. PROHIBITED FINANCIAL TRANSACTIONS.

    (a) Financial Exploitation by Public Office Holders.--

    (1) In general.--Chapter 131 of title 5, United States 
 Code, is amended by adding at the end the following:

 ``Subchapter IV--Financial Exploitation by Public Office Holders

``

Sec. 13151. Definitions
 ``In this subchapter:
 ``

    (1) Adjacent individual.--The term `adjacent individual' 
 means--
 ``
        (A) each officer or employee in the executive 
 branch holding a Senior Executive Service position (as 
 defined in 

section 3132

    (a)

    (2) );
 ``
        (B) each member of a uniformed service whose pay 
 grade is at or in excess of O-7 under 

section 201 of 
 title 37;
 ``
            (C) each officer or employee in any other 
 position in the executive branch determined by the 
 Office of the Special Counsel, in consultation with the 
 Director of the Office of Government Ethics, to be of 
 equal classification to a position described in 
 subparagraph
        (A) or
        (B) ; or
 ``
            (D) the spouse or dependent child of any 
 individual described in subparagraph
        (A) ,
        (B) , or
            (C) .
 ``

    (2) Covered asset.--The term `covered asset' means--
 ``
        (A) a security (as defined in 

section 3

    (a) of 
 Securities Exchange Act of 1934 (15 U.S.C. 78c

    (a) ));
 ``
        (B) a security future (as defined in 

section 3

    (a) of Securities Exchange Act of 1934 (15 U.S.C. 78c

    (a) ));
 ``
            (C) a commodity (as defined in 

section 1a of the 
 Commodity Exchange Act (7 U.S.C. 1a));
 ``
            (D) a digital asset that can be sold for 
 remuneration, including a cryptocurrency, a meme coin, 
 a token, or a non-fungible token; or
 ``
        (E) any derivative, option, warrant, mutual fund, 
 or exchange-traded fund of an asset described in 
 subparagraphs
        (A) through
            (D) .
 ``

    (3) Covered individual.--The term `covered individual' 
 means--
 ``
        (A) the President;
 ``
        (B) the Vice President;
 ``
            (C) a public official (as defined in 

section 201

    (a) of title 18); or
 ``
            (D) the spouse or dependent child of any 
 individual described in subparagraph
        (A) ,
        (B) , or
            (C) .
 ``

    (4) Dependent child.--The term `dependent child' has the 
 meaning given the term in 

section 13101.
 ``

    (5) Prohibited financial transaction.--The term 
 `prohibited financial transaction' means the issuance, 
 sponsorship, or promotion of a covered asset for pecuniary 
 gain.
``

Sec. 13152. Prohibition on certain transactions
 ``

    (a) Prohibition.--Except as provided in subsection

    (b) , a covered 
individual or an adjacent individual may not engage in or benefit from 
a prohibited financial transaction--
 ``

    (1) during the term of service of the covered individual 
 or adjacent individual;
 ``

    (2) during the 180-day period ending on the date on which 
 the service of the covered individual or adjacent individual 
 commences; or
 ``

    (3) during the 180-day period beginning on the date on 
 which the service of the covered individual or adjacent 
 individual is terminated.
 ``

    (b) Adjacent Individuals.--With respect to adjacent individuals, 
nothing in this section shall be construed to limit the application of 

section 208 of title 18.
 ``
            (c) Liability and Immunity.--For purposes of any immunities to 
civil liability, any conduct comprising or relating to a prohibited 
financial transaction under this section shall be deemed an unofficial 
act and beyond the scope of the official duties of the relevant covered 
individual or adjacent individual.
``

Sec. 13153. Civil penalties
 ``

    (a) Civil Action.--The Attorney General may bring a civil action 
in any appropriate district court of the United States against any 
covered individual or adjacent individual who violates 

section 13152

    (a) .
 ``

    (b) Civil Penalty.--Any covered individual or adjacent individual 
who knowingly violates 

section 13152

    (a) shall be subject to a civil 
monetary penalty of not more than $250,000.
 ``
            (c) Disgorgement.--A covered individual or an adjacent individual 
who is found to have violated 

section 13152

    (a) in a civil action under 
subsection

    (a) of this section shall disgorge to the Treasury of the 
United States any profit from the unlawful activity that is the subject 
of that civil action.''.

    (2) Clerical amendment.--The table of sections for chapter 
 131 of title 5, United States Code, is amended by adding at the 
 end the following:

 ``subchapter iv--financial exploitation by public office holders

``13151. Definitions.
``13152. Prohibition on certain transactions.
``13153. Civil penalties.''.

    (b) Criminal Penalties.--

    (1) Prohibited financial transactions.--Chapter 11 of title 
 18, United States is amended by inserting after 

section 220 the 
 following:
``

Sec. 221. Prohibited financial transactions
 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Adjacent individual.--The term `adjacent individual' 
 means--
 ``
        (A) each officer or employee in the executive 
 branch holding a Senior Executive Service position (as 
 defined in 

section 3132

    (a)

    (2) of title 5);
 ``
        (B) each member of a uniformed service whose pay 
 grade is at or in excess of O-7 under 

section 201 of 
 title 37;
 ``
            (C) each officer or employee in any other 
 position in the executive branch determined by the 
 Office of the Special Counsel, in consultation with the 
 Director of the Office of Government Ethics, to be of 
 equal classification to a position described in 
 subparagraph
        (A) or
        (B) ; or
 ``
            (D) the spouse or dependent child of any 
 individual described in subparagraph
        (A) ,
        (B) , or
            (C) .
 ``

    (2) Covered asset.--The term `covered asset' means--
 ``
        (A) a security (as defined in 

section 3

    (a) of 
 Securities Exchange Act of 1934 (15 U.S.C. 78c

    (a) ));
 ``
        (B) a security future (as defined in 

section 3

    (a) of Securities Exchange Act of 1934 (15 U.S.C. 78c

    (a) ));
 ``
            (C) a commodity (as defined in 

section 1a of the 
 Commodity Exchange Act (7 U.S.C. 1a));
 ``
            (D) a digital asset that can be sold for 
 remuneration, including a cryptocurrency, a meme coin, 
 a token, or a non-fungible token; or
 ``
        (E) any derivative, option, warrant, mutual fund, 
 or exchange-traded fund of an asset described in 
 subparagraphs
        (A) through
            (D) .
 ``

    (3) Covered individual.--The term `covered individual' 
 means--
 ``
        (A) the President;
 ``
        (B) the Vice President;
 ``
            (C) a public official (as defined in 

section 201

    (a) ); or
 ``
            (D) the spouse or dependent child of any 
 individual described in subparagraph
        (A) ,
        (B) , or
            (C) .
 ``

    (4) Dependent child.--The term `dependent child' has the 
 meaning given the term in 

section 13101 of title 5.
 ``

    (5) Prohibited financial transaction.--The term 
 `prohibited financial transaction' means the issuance, 
 sponsorship, or promotion of a covered asset for pecuniary 
 gain.
 ``

    (b) Benefit From Prohibited Financial Transaction.--Any covered 
individual or adjacent individual who--
 ``

    (1) knowingly violates any provision of 

section 13152

    (a) of title 5; and
 ``

    (2) through such violation--
 ``
        (A) causes an aggregate loss of not less than 
 $1,000,000 to 1 or more persons in the United States; 
 or
 ``
        (B) benefits financially, through profit, gain, 
 or advantage, directly or indirectly through any family 
 member or business associate of the covered individual 
 or adjacent individual, from the sale, purchase, or 
 distribution of the covered asset issued in violation 
 of 

section 13152

    (a) of title 5,
shall be fined under this title or imprisoned for not more than 5 
years, or both.
 ``
            (c) Bribery.--Any covered individual or adjacent individual who--
 ``

    (1) knowingly violates any provision of 

section 13152

    (a) of title 5; and
 ``

    (2) directly or indirectly, corruptly demands, seeks, 
 receives, accepts, or agrees to receive or accept any thing of 
 value personally or for any other person or entity, in return 
 for--
 ``
        (A) being influenced in the performance of any 
 official act;
 ``
        (B) being influenced to commit or aid in 
 committing, or to collude in, or allow, any fraud, or 
 make opportunity for the commission of any fraud, on 
 the United States; or
 ``
            (C) being induced to do or omit to do any act in 
 violation of the official duty of such official or 
 person,
shall be fined under this title or not more than 3 times the amount of 
financial gain, if any, that the individual benefitted from relating to 
the prohibited conduct, whichever is greater, or imprisoned for not 
more than 15 years, or both, and may be disqualified from holding any 
office of honor, trust, or profit under the United States.
 ``
            (d) Insider Trading.--Any covered individual or adjacent 
individual who knowingly violates 

section 13152

    (a) of title 5 and, in 
committing such violation, knowingly violates 

section 10

    (b) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78j

    (b) ), shall be fined 
under this title or not more than 3 times the amount of financial gain, 
if any, that the individual benefitted from relating to the prohibited 
conduct, whichever is greater, or imprisoned for not more than 15 
years, or both, and may be disqualified from holding any office of 
honor, trust, or profit under the United States.
 ``

    (e) Liability and Immunity.--For purposes of any immunities to 
civil and criminal liability, any conduct comprising or relating to a 
prohibited financial transaction under this section shall be deemed an 
unofficial act and beyond the scope of the official duties of the 
relevant covered individual or adjacent individual.''.

    (2) Clerical amendment.--The table of sections for chapter 
 11 of title 18, United States Code, is amended by inserting 
 after the item relating to 

section 220 the following:

``221. Prohibited financial transactions.''.
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