119-s2143

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2143 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2143

 To amend chapter 131 of title 5, United States Code, to prevent 
 financial exploitation by public office holders, and for other 
 purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 June 23, 2025

 Mr. Schiff (for himself, Ms. Blunt Rochester, Ms. Cortez Masto, Mr. 
 Gallego, Mrs. Gillibrand, Mr. Lujan, Ms. Slotkin, Mr. Kim, Mr. 
 Blumenthal, and Ms. Alsobrooks) 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, to prevent 
 financial exploitation by public office holders, 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 ``Curbing Officials' Income and 
Nondisclosure

    (COIN) Act''.

SEC. 2. PROHIBITED FINANCIAL TRANSACTIONS.

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

 ``SUBCHAPTER IV--FINANCIAL EXPLOITATION BY A PUBLIC OFFICE HOLDER

``

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

    (1) Covered individual.--The term `covered individual' 
 means an individual described in 

section 13103

    (f) .
 ``

    (2) Endorsement.--The term `endorsement' includes the use 
 of the name and likeness of an individual in any marketing 
 materials relating to a financial interest described in 
 subclauses
            (I) through
            (V) of paragraph

    (4)
        (A)
            (i) , including in 
 the title of the financial interest.
 ``

    (3) Immediate family member.--The term `immediate family 
 member' means, with respect to a covered individual--
 ``
        (A) a spouse, parent, brother or sister, or child 
 (including a child age 18 or older) of that covered 
 individual; or
 ``
        (B) an individual to whom the covered individual 
 stands in loco parentis.
 ``

    (4) Prohibited financial transaction.--
 ``
        (A) In general.--The term `prohibited financial 
 transaction' means--
 ``
            (i) any issuance, sponsorship, or 
 endorsement of--
 ``
            (I) a security (as defined in 
 

section 3

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

    (a) )) that is 
 a digital asset;
 ``
            (II) a security future (as 
 defined in 

section 3

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

    (a) )) relating to a digital 
 asset;
 ``
            (III) a commodity (as defined in 
 

section 1a of the Commodity Exchange 
 Act (7 U.S.C. 1a)) that is a digital 
 asset;
 ``
            (IV) a cryptocurrency, meme coin, 
 token, non-fungible token, or other 
 digital asset that is sold for 
 remuneration; or
 ``
            (V) a payment stablecoin;
 ``
            (ii) any financial interest comparable to 
 an interest described in subclauses
            (I) through
            (V) of clause
            (i) that is acquired through 
 synthetic means, such as the use of a 
 derivative, including an option, warrant, or 
 other similar means; or
 ``
            (iii) any financial interest comparable 
 to an interest described in subclauses
            (I) through
            (V) of clause
            (i) that is acquired as 
 part of an aggregation or compilation of such 
 interests through a mutual fund, exchange-
 traded fund, or other similar means if such 
 aggregation or compilation of such interests 
 constitutes a significant portion of that 
 mutual fund, exchange-traded fund, or other 
 similar means, as determined by the Secretary 
 of the Treasury.
 ``
        (B) Exclusions.--The term `prohibited financial 
 transaction' does not include the mere purchase, sale, 
 holding, or other conduct relating to financial 
 instruments or assets routinely accessible to any 
 member of the public.
``

Sec. 13152. Prohibition on certain transactions
 ``

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

    (b) , a covered 
individual, or an immediate family member of a covered individual, may 
not engage in a prohibited financial transaction--
 ``

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

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

    (3) during the 2-year period beginning on the date on 
 which the service of the covered individual is terminated.
 ``

    (b) Acts Affecting a Personal Financial Interest.--This section 
shall be supplementary in nature to 

section 208 of title 18, and 
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 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.
``

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 the immediate family member of a covered 
individual, who violates 

section 13152

    (a) .
 ``

    (b) Civil Penalty.--Any covered individual, or the immediate 
family member of a covered individual, who knowingly violates 

section 13152

    (a) shall be subject to a civil monetary penalty of--
 ``

    (1) not more than $25,000 per violation;
 ``

    (2) 10 percent of the value of the financial interest 
 that is the subject of the prohibited conduct; or
 ``

    (3) the amount of financial gain, if any, that the 
 covered individual benefitted from relating to the prohibited 
 conduct, whichever is greater.
 ``
            (c) Disgorgement.--A covered individual, or the immediate family 
member of a covered 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 
prohibited conduct that is the subject of that civil action.''.

    (b) 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 a public office holder

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

SEC. 3. CRIMINAL PENALTIES RELATING TO PROHIBITED FINANCIAL 
 TRANSACTIONS.

    (a) In General.--Chapter 11 of title 18, United States Code, is 
amended by inserting after 

section 220 the following:
``

Sec. 221. Prohibited financial transactions
 ``

    (a) 

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

    (1) Covered individual.--The term `covered individual' 
 means an individual described in 

section 13103

    (f) .
 ``

    (2) Endorsement.--The term `endorsement' includes the use 
 of the name and likeness of an individual in any marketing 
 materials relating to a financial interest described in 
 subclauses
            (I) through
            (V) of paragraph

    (3)
        (A)
            (i) , including in 
 the title of the financial interest.
 ``

    (3) Prohibited financial transaction.--
 ``
        (A) In general.--The term `prohibited financial 
 transaction' means--
 ``
            (i) any issuance, sponsorship, or 
 endorsement of--
 ``
            (I) a security (as defined in 
 

section 3

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

    (a) )) that is 
 a digital asset;
 ``
            (II) a security future (as 
 defined in 

section 3

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

    (a) )) relating to a digital 
 asset;
 ``
            (III) a commodity (as defined in 
 

section 1a of the Commodity Exchange 
 Act (7 U.S.C. 1a)) that is a digital 
 asset;
 ``
            (IV) a cryptocurrency, meme coin, 
 token, non-fungible token, or other 
 digital asset that is sold for 
 remuneration; or
 ``
            (V) a payment stablecoin;
 ``
            (ii) any financial interest comparable to 
 an interest described in subclauses
            (I) through
            (V) of clause
            (i) that is acquired through 
 synthetic means, such as the use of a 
 derivative, including an option, warrant, or 
 other similar means; or
 ``
            (iii) any financial interest comparable 
 to an interest described in subclauses
            (I) through
            (V) of clause
            (i) that is acquired as 
 part of an aggregation or compilation of such 
 interests through a mutual fund, exchange-
 traded fund, or other similar means if such 
 aggregation or compilation of such interests 
 constitutes a significant portion of that 
 mutual fund, exchange-traded fund, or other 
 similar means, as determined by the Secretary 
 of the Treasury.
 ``
        (B) Exclusions.--The term `prohibited financial 
 transaction' does not include the mere purchase, sale, 
 holding, or other conduct relating to financial 
 instruments or assets routinely accessible to any 
 member of the public.
 ``

    (b) Benefitting From Prohibited Financial Transaction.--Any 
covered 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, 
 from the sale, purchase, or distribution of the 
 financial interest described in subsection

    (a)

    (3)
        (A)
            (i) issued, sponsored, or endorsed in violation of 

section 13152 of title 5,
 shall be fined under this title, imprisoned for not more than 5 
 years, or both.
 ``
            (c) Bribery.--Any covered 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 
 monetary equivalent of the thing of value, 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 who knowingly 
violates 

section 13152

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

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) Intent.--To incur criminal liability under this section, it 
shall not be required that a covered individual intended to create a 
financial interest described in subsection

    (a)

    (3)
        (A)
            (i) through the 
issuance, sponsorship or endorsement of the financial interest 
described in subsection

    (a)

    (3)
        (A)
            (i) .
 ``

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

    (b) 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.''.

SEC. 4. ETHICS REQUIREMENTS RELATING TO CRYPTOCURRENCIES AND DIGITAL 
 ASSETS.

    (a) Disclosure Relating to Cryptocurrencies and Digital Assets.--

Section 13104 of title 5, United States Code, is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (5)
        (B) , by inserting 
 ``cryptocurrencies, meme coins, tokens, non-fungible 
 tokens, payment stablecoins, or other digital assets 
 that are sold for remuneration,'' after ``commodities 
 futures,''; and
        (B) by adding at the end the following:
 ``

    (9) Cryptocurrencies and digital assets.--The identity 
 and category of value of any cryptocurrency, meme coin, token, 
 non-fungible token, payment stablecoin, or other digital asset 
 that is sold for remuneration that has a fair market value that 
 exceeds $1,000 as of the close of the preceding calendar year 
 held by the reporting individual during the preceding calendar 
 year.'';

    (2) in subsection

    (b)

    (1)
        (B) , by striking ``

    (3) and

    (4) '' 
 and inserting ``

    (3) ,

    (4) , and

    (9) ''; and

    (3) in subsection
            (d) (1) --
        (A) in the paragraph heading, by striking ``

    (3) ,

    (4) ,

    (5) , and

    (8) '' and inserting ``

    (3) ,

    (4) ,

    (5) ,

    (8) , 
 and

    (9) ''; and
        (B) in the matter preceding subparagraph
        (A) , by 
 striking ``

    (3) ,

    (4) ,

    (5) , and

    (8) '' and inserting 
 ``

    (3) ,

    (4) ,

    (5) ,

    (8) , and

    (9) ''.

    (b) Acts Affecting a Personal Financial Interest.--

Section 208 of 
title 18, United States Code, is amended by adding at the end the 
following:
 ``

    (e) For purposes of subsection

    (a) , the term `financial interest' 
includes an interest in the issuance, purchase, sale, or holding of a 
cryptocurrency, meme coin, token, non-fungible token, payment 
stablecoin, or other digital asset that is sold for remuneration.''.

SEC. 5. PUBLIC OFFICIAL CERTIFICATION REQUIREMENT.

    (a) 

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

    (1) Permitted payment stablecoin issuer.--The term 
 ``permitted payment stablecoin issuer'' means a payment 
 stablecoin issuer that has received approval to operate under 
 subsection
            (c) .

    (2) Public official.--The term ``public official'' means an 
 individual described in 

section 13103

    (f) of title 5, United 
 States Code.

    (3) Special government employee.--The term ``special 
 Government employee'' has the meaning given that term in 
 

section 202

    (a) of title 18, United States Code.

    (b) Requirement.--A permitted payment stablecoin issuer shall 
ensure that no public official shall profit from the issuance of 
payment stablecoins of the permitted payment stablecoin issuer.
            (c) Certification.--

    (1) Initial certification.--To receive approval to operate 
 as a permitted payment stablecoin issuer, each payment 
 stablecoin issuer shall submit to the Director of the Office of 
 Government Ethics and the primary Federal payment stablecoin 
 regulator of the payment stablecoin issuer a certification that 
 no public official has a financial interest related to a 
 particular matter in which the public official participates 
 personally and substantially as a Government officer or 
 employee, including as a special Government employee, from the 
 issuance of payment stablecoins of the payment stablecoin 
 issuer.

    (2) Recertification.--Not later than 90 days after the 
 issuance of the first payment stablecoin by a permitted payment 
 stablecoin issuer, and on a quarterly basis thereafter, each 
 permitted stablecoin issuer shall submit to the Director of the 
 Office of Government Ethics and the primary Federal payment 
 stablecoin regulator of the permitted payment stablecoin issuer 
 a certification that no public official has a financial 
 interest related to a particular matter in which the public 
 official participates personally and substantially as a 
 Government officer or employee, including as a special 
 Government employee, from the issuance of payment stablecoins 
 of the permitted payment stablecoin issuer.

    (3) Public disclosure.--The Director of the Office of 
 Government Ethics shall make the certifications submitted under 
 paragraphs

    (1) and

    (2) publicly available through databases 
 maintained on the official website of the Office of Government 
 Ethics.
            (d) Penalties.--

    (1) Approval revocation.--The primary Federal payment 
 stablecoin regulator of a permitted payment stablecoin issuer 
 that does not submit a certification pursuant to subsection
            (c) shall revoke the approval to operate of the permitted payment 
 stablecoin issuer.

    (2) Criminal penalty.--
        (A) In general.--Any person that submits a 
 certification pursuant to subsection
            (c) that is false 
 shall be subject to the criminal penalties set forth 
 under 

section 1001 of title 18, United States Code.
        (B) Referral to attorney general.--If a Federal 
 payment stablecoin regulator has reason to believe that 
 any person has violated subsection
            (c) , the Federal 
 payment stablecoin regulator shall refer the matter to 
 the Attorney General.

SEC. 6. GAO REPORT TO CONGRESS.

    (a) 

=== Definition. ===
-In this section, the term ``relevant congressional 
committees'' means--

    (1) the Committee on Banking, Housing, and Urban Affairs of 
 the Senate;

    (2) the Committee on Agriculture, Nutrition, and Forestry 
 of the Senate;

    (3) the Committee on Homeland Security and Governmental 
 Affairs of the Senate;

    (4) the Committee on Financial Services of the House of 
 Representatives;

    (5) the Committee on Agriculture of the House of 
 Representatives; and

    (6) the Committee on Oversight and Government Reform of the 
 House of Representatives.

    (b) Report.--Not later than 360 days after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
the relevant congressional committees a report that contains 
recommendations to update Federal laws relating to ethics and 
enforcement procedures relating to ethics in order to incorporate any 
regulatory frameworks relating to digital assets adopted on or after 
the date of enactment of this Act.
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