No Stock Act Bans Congress, Supreme Court, and President from Trading Stocks, Crypto, and Futures

The newly proposed "No Stock Act" aims to eliminate financial conflicts of interest at the highest levels of government by banning high-ranking officials and their immediate families from owning or trading individual stocks, futures, or most cryptocurrencies. This isn't just about Congress; the restrictions apply to a wide net of "covered individuals," including the President, Vice President, Supreme Court Justices, and key Federal Reserve officials. If passed, these officials would have 120 days to sell off any existing conflicted holdings.

Who’s Covered and What’s Out?

Think of this as a major policy overhaul for the financial lives of Washington’s elite. The definition of a "covered individual" is intentionally broad, including the spouse and dependent children of the primary officeholder. The list of prohibited assets—dubbed a "covered financial interest"—includes individual stocks, futures contracts, and any digital asset like cryptocurrency or meme coins (Section 2). Crucially, officials are also barred from entering into any transaction that creates a "net short position," meaning they can’t profit by betting against a company’s stock. The exceptions are important: diversified mutual funds, U.S. Treasury bonds, and compensation from a spouse’s primary job are all still allowed, recognizing that people still need to save for retirement.

The 120-Day Clock and Cooling Off

For anyone currently holding office when this law takes effect, or for new officials coming in, the clock starts ticking immediately. They get a 120-day window to divest—meaning sell off—any prohibited assets they own (Section 2). This is where the rubber meets the road: a Supreme Court Justice or a Senator would need to liquidate their entire individual stock portfolio quickly. If they inherit a conflicted asset later, they get a fresh 120 days to sell that, too. If they need an extension, they can ask their ethics office, but the total extra time is capped at 150 days. The bill also mandates a 120-day “cooling-off period” after an official leaves office, keeping the restrictions in place temporarily to prevent last-minute transactions based on inside knowledge.

The Ethics Office and the Trust Factor

Compliance is handled by the supervising ethics office for each branch. They are the ones who sign off on the required certification that the official has complied, and they are responsible for making all extension requests and decisions public within 30 days of receiving them (Section 2). This adds a layer of transparency to the process. For regular people, this means less worry that powerful officials are making policy decisions—say, about crypto regulation or a defense contract—while holding a massive stake in the outcome. The bill explicitly closes a common loophole by stating that these rules apply even if the conflicted asset is held inside a trust, regardless of whether it’s a “qualified blind trust.”

What Happens If They Cheat?

If a covered individual knowingly violates these rules, the penalty is stiff: a fine of at least 10 percent of the value of the illegal transaction or holding (Section 2). While this sounds like a strong deterrent, it’s worth noting that the enforcement relies heavily on the supervising ethics offices. The bill is clear and specific about the prohibitions, which is good for accountability, but the effectiveness ultimately comes down to the rigor of those ethics offices. For the everyday citizen, this bill represents a significant step toward ensuring that those writing the rules are focused on the public good, not their personal portfolios.