No Shorting America Act

The No Shorting America Act would bar Members of Congress, their spouses, and their dependents from engaging in short selling of certain financial investments. It covers so-called covered financial instruments — including stocks, futures, commodities, and similar economic interests obtained through derivatives — when the instrument belongs to a business entity listed on a national stock exchange. The bill also requires compliance pledges, a certificate of compliance, and public disclosure of those certificates. Violations would be enforceable by civil action in federal court, with penalties up to $50,000 and a prohibition on using certain official or campaign funds to pay any penalties. Losses from disallowed short sales could not be deducted for income tax purposes.