S.Amdt. 3845

The purpose of this amendment is to stop certain high-ranking officials from using their positions to profit from specific digital assets. It aims to add new rules and penalties to the U.S. Code to prevent "crypto corruption."

What it changes or adds:

• Who is restricted: The rules apply to "covered individuals," which include the President, Vice President, Members of Congress, Senate-confirmed appointees, and specific special Government employees in the Executive Office of the President. These restrictions also extend to their spouses and dependent children.

• What is banned: It prohibits these individuals from directly or indirectly engaging in "prohibited financial transactions." This includes the issuance, sponsorship, or endorsement of digital assets sold for money, such as:

  • Cryptocurrencies
  • Meme coins
  • Tokens
  • Non-fungible tokens (NFTs)
  • Stablecoins

• Timeline: This ban lasts during the official's term of service and for one year after their service ends.

• Exclusions: The ban does not apply to buying, selling, or holding financial assets that are routinely available to the general public.

• Accountability:

  • Civil Penalties: Violators can be sued by the Attorney General and may face fines (up to 10 percent of the asset value or the amount of financial gain, whichever is greater) and must give back any profits to the Treasury.
  • Criminal Penalties: Officials can face fines or up to 5 years in prison if they knowingly violate the rules and cause losses of at least $1,000,000 or benefit financially.
  • Bribery: There are additional criminal penalties and potential disqualification from holding office if the violation involves corruptly accepting things of value to influence official acts.

• Legal Status: Any conduct involving these prohibited transactions is considered an "unofficial act" and is not covered by official duty immunities.