STOCK Act 2.0

Bill Number

H.R. 3779

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Congress

Status

Introduced

Latest Action

2025-06-05: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-04-14T16:30:44Z

AI-Generated Summary

Purpose

The "STOCK Act 2.0" (H.R. 3779) aims to strengthen ethics rules for senior U.S. government officials by increasing transparency in financial disclosures, requiring reports on federal payments received, extending ethics requirements to Federal Reserve officials, banning certain stock and financial trading to prevent conflicts of interest, and mandating electronic filing and public access to disclosure forms. It builds on the original STOCK Act (Stop Trading on Congressional Knowledge Act of 2012) to reduce the potential for insider trading or undue influence.

Key Provisions

• Reporting Federal Payments (Sec. 2): Covered individuals (senior officials, their spouses, and dependent children under 19) must report applications for or receipt of "covered payments" from the federal government—such as loans, contracts, grants, or other items of value (excluding salaries or tax refunds)—within 30 days of notice or 45 days of receipt. Reports include details like recipient names, relationships, dates, and amounts. Failure to report incurs a $5,000 fine. Applies 90 days after enactment.

• Inclusion of Federal Reserve Officials (Sec. 3): Presidents, vice presidents, and directors of Federal Reserve banks are subject to existing ethics laws (including the STOCK Act and related securities rules). Their supervising ethics office is the Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.

• Penalties for Noncompliance (Sec. 4): Increases the fine for failing to file required transaction reports from a variable amount under criminal law to a flat $1,000 per violation. Supervising ethics offices must update rules within one year.

• Banning Conflicted Interests (Sec. 5): Adds a new subchapter to federal ethics law prohibiting "covered individuals" (Members of Congress, President, Vice President, special government employees, Chief and Associate Justices of the Supreme Court, Federal Reserve Board members, Federal Reserve bank presidents/vice presidents, and their spouses/dependent children under 19) from:
• Holding, buying, selling, or transacting "covered financial interests" (stocks, futures, commodities, cryptocurrencies from initial coin offerings or blockchain, or synthetic equivalents like derivatives; excludes diversified mutual funds, spousal primary job compensation, or U.S. Treasuries).
• Creating net short positions in securities (betting against a stock's value).
• Serving as officers or board members of for-profit entities.
• A 120-day "cooling-off" period applies after leaving office, barring these activities.
• Divestiture Requirements: Individuals must sell prohibited assets within 120 days of becoming covered (or enactment for existing holdings) or inheriting them (with possible extensions up to 150 total days). Compliance certificates must be filed, and extension requests published online. Violations trigger fines of at least 10% of the asset's value. Rules apply to beneficial interests in trusts, including blind trusts.
• Amends tax law to allow certificates of divestiture (to defer capital gains taxes on sold assets) issued by appropriate ethics offices.

• Electronic Filing and Public Access (Sec. 6): Requires searchable, downloadable online databases (with application programming interfaces for data access) for financial and transaction disclosures by:
• Members of Congress and staff (via Senate/House websites).
• Very senior executive branch officials (President, Vice President, top appointees via Office of Government Ethics website).
• Judicial officers (via Administrative Office of the U.S. Courts website).
• Federal Reserve bank officers (via their ethics office website).

Systems must comply with accessibility standards (e.g., for people with disabilities). No login required for public viewing. Implementation within 18 months, with possible extensions reported to Congress.

Significant Changes to Existing Law

• Expands the STOCK Act and federal ethics code (5 U.S.C. Chapter 131) to include Federal Reserve officials and judicial disclosures in electronic systems, previously not fully covered.
• Introduces a outright ban on stock trading and related activities for a broad group of senior officials and families, going beyond prior rules that only required disclosures (no trading bans existed for most covered roles).
• Adds mandatory reporting for federal payments and a fixed $1,000 fine for transaction report failures, replacing vague criminal penalties.
• Mandates modernized, user-friendly public access to disclosures (searchable by name, asset, transaction details), improving on paper-based or limited online systems.
• Applies to trusts and inherited assets, closing loopholes in prior divestiture rules.

Potential Impacts

• Government Agencies: Ethics offices (e.g., Office of Government Ethics, congressional committees, court administrators, Federal Reserve Inspector General) face increased workloads for enforcement, system development, and public databases. Could enhance internal accountability but require new resources for compliance monitoring and fines.
• Citizens: Improves public access to officials' finances, enabling easier oversight of potential conflicts (e.g., via searchable online tools), which may build trust in government. No direct international relations impact, though it could indirectly affect U.S. financial markets by signaling stronger anti-corruption measures.
• Officials and Families: Forces divestiture of personal investments, potentially disrupting wealth management and incurring tax or market risks. Bans could limit financial opportunities, especially for spouses or children, but aim to prevent insider advantages.

Main Stakeholders Affected

• Senior Government Officials: Members of Congress, executive leaders (President, Vice President, top appointees), judicial officers (Supreme Court justices), Federal Reserve personnel, and their immediate families—directly burdened by bans, reporting, and divestiture.
• Ethics and Oversight Bodies: Supervising ethics offices, including congressional committees, Office of Government Ethics, Judicial Conference, and Federal Reserve Inspector General—responsible for implementation, enforcement, and public portals.
• Public and Watchdog Groups: Citizens, journalists, and nonprofits benefit from enhanced transparency and data access.
• Financial Institutions: Impacted indirectly through restrictions on officials' trading and board roles, potentially reducing insider trading risks in markets.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens enforcement with specific fines and divestiture timelines, but relies on self-certification and ethics offices for compliance, which could lead to disputes over asset valuations or extensions. Amends tax code to support divestiture, easing financial burdens.
• Constitutional: May raise questions about property rights (Fifth Amendment takings clause) due to forced sales of assets, though similar ethics rules have been upheld as serving public interest in preventing corruption. No direct free speech issues, but board bans could limit associational rights.
• Political: Promotes bipartisan ethics reform by targeting perceived conflicts (e.g., congressional stock trading), potentially reducing public cynicism. Could deter individuals from public service due to restrictions, or encourage blind trusts. As an introduced bill (June 5, 2025), its passage would signal congressional commitment to transparency amid ongoing debates on official finances.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Min, Dave [D-CA-47]

Cosponsors (18)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Ansari, Yassamin [D-AZ-3], Rep. Levin, Mike [D-CA-49], Rep. Tlaib, Rashida [D-MI-12], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Ramirez, Delia C. [D-IL-3], Rep. Keating, William R. [D-MA-9], Rep. Horsford, Steven [D-NV-4], Rep. Stanton, Greg [D-AZ-4], Rep. Budzinski, Nikki [D-IL-13], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Latimer, George [D-NY-16], Rep. Doggett, Lloyd [D-TX-37], Rep. Quigley, Mike [D-IL-5], Rep. Harder, Josh [D-CA-9], Rep. Thompson, Mike [D-CA-4], Rep. Casar, Greg [D-TX-35], Rep. Tran, Derek [D-CA-45]

Recent Actions

• 2025-06-05: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-05: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-05: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-05: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-05: Introduced in House
• 2025-06-05: Introduced in House

Bill Versions

• STOCK Act 2.0 — issued 2025-06-05 — PDF (29 pages)

Related Bills

• S. 2877 (119th Congress)