S. 1668

119 S1668 PCS: End Crypto Corruption Act of 2025
 U.S. Senate
 2025-05-08
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  Calendar No. 71  119th CONGRESS  1st Session  S. 1668  IN THE SENATE OF THE UNITED STATES   May 7, 2025   Mr. Merkley  (for himself,  Mr. Schumer ,  Ms. Warren ,  Ms. Hirono ,  Mr. Van Hollen ,  Mr. Reed ,  Mrs. Gillibrand ,  Ms. Cortez Masto ,  Mr. Wyden ,  Mr. Sanders ,  Mr. Kim ,  Ms. Alsobrooks ,  Mr. Booker ,  Mr. Markey ,  Ms. Duckworth ,  Ms. Slotkin ,  Mr. Kelly ,  Ms. Blunt Rochester ,  Mr. Blumenthal , and  Mrs. Shaheen ) introduced the following bill; which was read the first time    May 8, 2025  Read the second time and placed on the calendar   A BILL
To amend  chapter 131  of title 5, United States Code, to prohibit the President, Vice President, Members of Congress, and individuals appointed to Senate-confirmed positions from issuing, sponsoring, or endorsing certain financial instruments, and for other purposes.
1.
Short title
This Act may be cited as the   End Crypto Corruption Act of 2025  .
2.
Prohibited financial transactions
(a)
In general
 Chapter 131  of title 5, United States Code, is amended by adding at the end the following:
IV
Prohibited financial transactions
13151.
Definitions
In this subchapter:
(1)
Covered individual
The term  covered individual  means—
(A)
the President;
(B)
the Vice President;
(C)
a Member of Congress;
(D)
an individual appointed to a Senate-confirmed position; or
(E)
a special Government employee (as defined in section 202 of title 18) associated with the Executive Office of the President.
(2)
Dependent child; Member of Congress
The terms  dependent child  and  Member of Congress  have the meanings given those terms in section 13101.
(3)
Directly
The term  directly  means by virtue of the ownership or beneficial interest of a covered individual, or the spouse or dependent child of a covered individual, in a financial interest described in paragraph (5)(A).
(4)
Indirectly
The term  indirectly  means by virtue of the financial interest of a covered individual, or the spouse or dependent child of a covered individual, in a business entity, partnership interest, company, investment fund, trust, or other third party in which the covered individual, or the spouse or dependent child of a covered individual, has an ownership or beneficial interest.
(5)
Prohibited financial transaction
(A)
In general
The term  prohibited financial transaction  means—
(i)
any issuance, sponsorship, or endorsement of a cryptocurrency, meme coin, token, non-fungible token, stablecoin, or other digital asset that is sold for remuneration;
(ii)
any financial interest comparable to an interest described in 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 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.
(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.
(6)
Senate-confirmed position
The term  Senate-confirmed position  means a position in a department or agency of the executive branch of the United States for which appointment is required to be made by the President, by and with the advice and consent of the Senate.
13152.
Prohibition on certain transactions
(a)
Prohibition
Except as provided in subsection (b), a covered individual, or the spouse or dependent child of a covered individual, may not engage directly or indirectly in a prohibited financial transaction—
(1)
during the term of service of the covered individual; or
(2)
during the 1-year period beginning on the date on which the service of the covered individual is terminated.
(b)
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.
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 who violates section 13152(a).
(b)
Civil penalty
Any covered individual who knowingly violates section 13152(a) shall be subject to a civil monetary penalty equal to not more than 10 percent of the value of the financial interest that is the subject of the prohibited conduct, or 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 who is found to have violated section 13152(a) in a civil action under subsection (a) 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—Prohibited financial transactions
13151. Definitions.
13152. Prohibition on certain transactions.
13153. Civil penalties.
  .
3.
Criminal penalties relating to prohibited financial transactions
(a)
In general
 Chapter 11  of title 18, United States Code, is amended by adding at the end the following:
227A.
Prohibited financial transactions
(a)
Definitions
In this section:
(1)
Covered individual
The term  covered individual  means—
(A)
the President;
(B)
the Vice President;
(C)
a Member of Congress;
(D)
an individual appointed to a Senate-confirmed position; or
(E)
a special Government employee (as defined in section 202) associated with the Executive Office of the President.
(2)
Member of Congress
The term  Member of Congress  has the meaning given that term in section 13101 of title 5.
(3)
Prohibited financial transaction
(A)
In general
The term  prohibited financial transaction  means—
(i)
any issuance, sponsorship, or endorsement of a cryptocurrency, meme coin, token, non-fungible token, stablecoin, or other digital asset that is sold for remuneration; or
(ii)
any financial interest comparable to an interest described in clause (i) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means.
(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.
(4)
Senate-confirmed position
The term  Senate-confirmed position  means a position in a department or agency of the executive branch of the United States for which appointment is required to be made by the President, by and with the advice and consent of the Senate.
(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(a) 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 2 times the monetary equivalent of the thing of value, whichever is greater, or imprisoned for not more than 5 years, or both, and may be disqualified from holding any office of honor, trust, or profit under the United States.
(d)
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).
(e)
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 227  the following:
227A. Prohibited financial transactions.
  .
   May 8, 2025  Read the second time and placed on the calendar