Bill > HR4036

This bill aims to prohibit Members of Congress, their spouses, and dependents from engaging in short selling of financial investments. Short selling is a trading strategy where an investor borrows shares and sells them, hoping to buy them back later at a lower price. The bill defines "covered financial instruments" broadly, including securities, security futures, commodities, and derivative instruments. Under the proposed law, no covered individual can short sell any financial instrument listed on a national stock exchange. Members of Congress must submit a compliance pledge to the supervising ethics office and can be issued a compliance certificate. If a covered individual is found to have willfully violated the prohibition, the Attorney General can bring a civil action with potential penalties up to $50,000. Importantly, these penalties cannot be paid using official congressional allowances or political committee funds. The bill seeks to prevent potential conflicts of interest and insider trading by restricting congressional members and their families from profiting from short-term market manipulations or leveraging non-public information.

Government Affairs

https://www.congress.gov/bill/119th-congress/house-bill/4036/all-info