# What the Bipartisan Ban on Congressional Stock Ownership Act Actually Does

This bill would prevent members of Congress and their spouses from owning individual stocks, bonds, and other securities while serving in office. Right now, members of Congress can buy and sell stocks just like anyone else, which has raised concerns that they might make investment decisions based on inside information they learn through their work or that their personal financial interests could influence how they vote on legislation. This bill aims to eliminate that potential conflict by requiring them to get out of the stock market entirely.

If this bill became law, current members of Congress would have 180 days to sell off their stock portfolios, bonds, and similar investments. The only exception is for complex investments like hedge funds or venture capital funds, which would get five years to be sold off. New members elected after the law passes would have the same 180-day window starting from when they take office. If a member or their spouse inherits stocks or receives them as a gift, they'd have 180 days to sell those too. The bill does allow a few specific exceptions: members could still own diversified mutual funds and index funds that don't create conflicts of interest, U.S. Treasury bonds, retirement accounts, and small business interests.

To make it easier for members to comply without getting hit with huge tax bills, the bill includes a tax break. When members sell stocks they're required to divest, they won't have to pay capital gains taxes on the profits from those sales—essentially allowing them to sell without the normal tax penalty. If someone violates the rules and doesn't divest when required, they could face civil fines of up to $50,000 per violation. The bill also gives the congressional ethics committees the job of figuring out the details of how to enforce these rules and what exactly counts as a conflict of interest.

Bipartisan Ban on Congressional Stock Ownership Act of 2023

Bipartisan Ban on Congressional Stock Ownership Act of 2023 This bill prohibits Members of Congress and their spouses from owning or trading stocks, bonds, commodities, futures, or any other form of security. Each current Member must divest within 180 days after the bill is enacted and each new Member must divest within 180 days after becoming a Member. However, Members and their spouses have 5 years to divest from specified complex investment vehicles. The bill does not apply to certain investments, such as investments in widely held investment funds that are diversified and do not present a conflict of interest and investments held in government employee retirement plans. A Member or spouse who violates the bill may be subject to a fine of up to $50,000 for each violation. The bill permits a Member or spouse who is required to divest property under the bill to avoid recognizing gain for income tax purposes from the sale of that property to the extent that the Member or spouse purchases permitted bonds or diversified investment funds within 60 days of the divestiture.