An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Covered financial interest

A type of investment that would be banned under this bill, including individual stocks, futures, commodities, cryptocurrencies, meme coins, and similar digital assets, as well as economic interests acquired through derivatives. It does not include diversified investment funds, U.S. Treasury bills, or certain compensation related to a spouse's primary job.

Covered individual

Specific high-ranking government officials who would be subject to the bill's rules, such as Members of Congress, the President, Supreme Court Justices, Federal Reserve Board members, and their spouses and dependent children.

Divestiture

The act of selling off investments or assets, typically to avoid conflicts of interest or comply with new regulations.

Net short position

An investment strategy where an investor profits if the price of an asset declines. This bill would ban covered individuals from entering into such positions for any security.

Derivative

A financial contract whose value is linked to, or derived from, an underlying asset or group of assets. Examples include options and warrants.

Supervising ethics office

The government office responsible for overseeing ethical conduct and compliance with financial disclosure rules for specific covered individuals (e.g., the Office of Government Ethics for executive branch employees).