Current status is Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

119th CONGRESS

1st Session

S. 2143

1. Short title
2. Prohibited financial transactions
3. Criminal penalties relating to prohibited financial transactions
4. Ethics requirements relating to cryptocurrencies and digital assets
5. Public official certification requirement
6. GAO report to Congress

1. Short title

This Act may be cited as the "Curbing Officials' Income and Nondisclosure (COIN) Act".

2. Prohibited financial transactions

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

(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:

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:

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,

(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

(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:

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) Cryptocurrencies and digital assets - 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) Cryptocurrencies and digital assets - 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.

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.

(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.

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.

119-S2143

Curbing Officials' Income and Nondisclosure (COIN) Act