,,ii #aagth ,,congress #ast ,session ,s4 #cjgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #bf1 #bjba ,mr4 ,brown 7for himself1 ,mrs4 ,gillibrand1 ,mr4 ,merkley1 and ,mr4 ,warnock7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,federal ,reserve ,act to prohibit officers of the ,federal ,reserve from trading certain securities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,ban ,conflicted ,trading at the ,fed ,act4 #b4 ,,stock ,act ,section #d of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cda et seq47 is amended by adding at the end the following3 ,title ,i of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app471 sections #i1 #aa1 #ac1 and #ad of the ,,stock ,act 7,public ,law #aab-aje71 and section #ba;,a7i7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghu-#a7;i77 shall apply to ,federal ,reserve bank presidents1 vice presidents1 and directors4 4 #c4 ,ban conflicted trades ,the ,federal ,reserve ,act 7#ab ,u4,s4,c4 et seq47 is amended by inserting after section #be;,c 7#ab ,u4,s4,c4 #fcc7 the following3 #be;,d4 ,ban conflicted trades 7a7 ,definitions ,in this section-- 7#a7 the term commodity has the meaning given the term in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a72 7#b7 the term covered investment-- 7,a7 means investment in a security1 a commodity1 virtual currency1 or a future1 or any comparable financial interest acquired through synthetic means such as the use of a derivative2 and 7,b7 does not include-- 7i7 a diversified mutual fund or investment trust subject to an exemption under section #bjh7;b77#b7 of title #ah1 ,united ,states ,code1 and section #bfdj4bja of title #e1 ,code of ,federal ,regulations2 or 7ii7 a ,united ,states ,treasury bill1 note1 or bond2 7#c7 the term covered person means-- 7,a7 a member of the ,board of ,governors of the ,federal ,reserve ,system2 and 7,b7 a president or vice president of a ,federal ,reserve bank2 7#d7 the term future means a financial contract obligating the buyer to purchase an asset or the seller to sell an asset1 such as a physical commodity or a financial instrument1 at a predetermined future date and price2 7#e7 the term security has the meaning given the term in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a772 and 7#f7 the term virtual currency means any cryptocurrency1 such as coins or tokens received in connection with initial coin offerings or issued or distributed using distributed ledger or blockchain technology4 7b7 ,prohibitions ,except as provided in subsections 7c7 and 7d71 no covered person may-- 7#a7 purchase or sell any covered investment2 or 7#b7 enter into a transaction that creates a net short position in any security4 7c7 ,exceptions 7#a7 ,investments held before taking office 7,a7 ,in general ,a covered person may have control over or knowledge of the management of any covered investment held by the covered person as of the day before the date on which the covered person took office4 7,b7 ,prohibition on purchasing or selling ,a covered person may not buy or sell any investment described in subparagraph 7,a7 except in the case of-- 7i7 placing the investment in a qualified blind trust described in subsection 7d72 or 7ii7 divesting themselves of any investment under paragraph 7#b74 7#b7 ,divestiture ,a covered person may sell a covered investment during the #f-month period beginning on-- 7,a7 the date on which the covered person takes office or begins employment1 as applicable2 7,b7 the date of enactment of this section2 or 7,c7 the date on which the covered person receives a covered investment through gift or inheritance4 7#c7 ,approval ,any transaction described in this subsection shall be approved in accordance with the rules issued under subsection 7f74 7d7 ,trusts 7#a7 ,in general ,on a case-by-case basis1 the designated agency ethics official of the ,board of ,governors may authorize a covered person to place their securities holdings in a qualified blind trust approved by the ,board under section #ajb7;f7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app474 7#b7 ,blind trust ,a blind trust permitted under this subsection shall meet the criteria in section #ajb7;f77#d77;,b7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app471 unless an alternative arrangement is approved by the ,board4 7e7 ,administration and enforcement 7#a7 ,administration ,the provisions of this section shall be administered by the ,board4 7#b7 ,enforcement ,whoever knowingly fails to comply with this section shall be subject to a civil penalty of not less than #aj percent of the value of the covered investment that was purchased or sold or the security in which a net short position was created in violation of this section1 as applicable4 7f7 ,other requirements ,not later than #ij days after the date of enactment of this section1 the ,board shall issue rules that require covered persons and senior staff to-- 7#a7 provide #de days advance notice and prior approval for any investment transactions2 and 7#b7 hold investments for a minimum of #a year from the date of the transaction4 4