Ending Trading and Holdings in Congressional Stocks (ETHICS) Act

The Ending Trading and Holdings in Congressional Stocks (ETHICS) Act would dramatically overhaul how Members of Congress and their immediate families handle financial assets. It would classify many stock-like investments as “covered investments” and require all such holdings owned or held by a Member, their spouse, or dependent children to be divested or placed into a qualified blind trust within strict timeframes. The bill would ban new purchases of covered investments by Members (with limited early-sell options for those already sworn in) and would subject spouses and dependent children to similar restrictions after a defined effective date. It also expands reporting and public disclosure requirements, strengthens enforcement with civil penalties, and mandates electronic, searchable public access to financial disclosures. In short, the bill aims to reduce conflicts of interest by limiting Members’ ability to trade or hold certain financial assets and by increasing transparency around their finances. Key elements include: defining what counts as a covered investment (and what does not); requiring rapid divestment or blind-trust placement; imposing a cooling-off period after leaving office; expanding STOCK Act reporting with new fines for noncompliance; creating binding rules for qualified blind trusts (trustee qualifications, initial property, and reporting); and pushing public disclosure of disclosures and trust information online, with a phased effective date.