The Government Ethics and Financial Integrity Act addresses the pervasive problem of financial conflicts of interest in American governance. Recent investigations have revealed numerous instances of elected officials trading stocks based on non-public information obtained through their official duties. In 2022 alone, nearly 100 members of Congress were found to have violated the STOCK Act’s minimal disclosure requirements, while others made suspiciously timed trades coinciding with legislative or regulatory actions affecting specific industries.
These conflicts extend beyond stock trading to include complex webs of business interests, family dealings, and gift arrangements that create both real and perceived corruption in government decision-making. The current system of disclosure without prohibition has proven inadequate, with enforcement being rare and penalties insufficient to deter abuse.
This Act establishes absolute barriers between public service and private financial gain, mandating complete separation of officials from their financial interests while in office. It creates a new paradigm where public service requires genuine sacrifice of private financial opportunities in exchange for the privilege of serving the American people.
Section 1: Stock Trading and Investment Restrictions
1.1. Complete Trading Ban:
- Absolute prohibition on stock trading by covered officials
- Ban extends to immediate family members
- Includes spouses, dependent children, and shared households
- Prohibition on participation in IPOs
- Ban on cryptocurrency trading
1.2. Permitted Investments:
- U.S. Treasury bonds
- Diversified mutual funds
- Federal retirement accounts
- State-sponsored 529 plans
- Certified blind trusts
1.3. Divestment Requirements:
- 60-day deadline to divest individual stocks
- Tax-advantaged reinvestment options
- Independent verification of compliance
- Regular audits of financial positions
- Public certification of divestment
Section 2: Blind Trust Requirements
2.1. Mandatory Trust Establishment:
- Required for all officials with over $50,000 in assets
- Independent trustee selection process
- Strict communication barriers
- Regular compliance audits
- Public disclosure of trust structure
2.2. Trust Operations:
- No communication about investment decisions
- Quarterly compliance certification
- Independent auditor oversight
- Public reporting of trust existence
- Strict penalties for violations
Section 3: Financial Disclosure Enhancement
3.1. Real-Time Reporting:
- 24-hour disclosure of any financial transactions
- Online public database of all disclosures
- Machine-readable format requirement
- Transaction verification system
- Public notification system
3.2. Enhanced Disclosure Requirements:
- Complete tax return disclosure
- Business interest revelations
- Family financial connections
- Speaking fee details
- Foreign financial ties
3.3. Cryptocurrency and Digital Assets:
- Disclosure of all digital holdings
- Reporting of mining operations
- Declaration of wallet addresses
- Exchange account disclosure
- NFT ownership reporting
Section 4: Gift and Income Restrictions
4.1. Gift Prohibitions:
- Complete ban on gifts over $20
- No cumulative gifts from single source
- Ban on travel reimbursements
- Prohibition of speaking fees
- Ban on book advances while in office
4.2. Outside Income Restrictions:
- Cap on earned income from any source
- Ban on consulting arrangements
- Prohibition of board positions
- Restrictions on book royalties
- Ban on advisory roles
Section 5: Enforcement Mechanisms
5.1. Office of Public Integrity:
- Independent enforcement authority
- Regular auditing power
- Investigation capabilities
- Subpoena authority
- Public reporting mandate
5.2. Penalties and Sanctions:
- Criminal penalties for violations
- Mandatory minimum fines
- Asset forfeiture provisions
- Removal from office for serious violations
- Lifetime ban for repeated offenses
5.3. Enhanced Insider Trading Enforcement:
- Dedicated investigation unit
- Coordination with SEC
- Advanced trading surveillance
- Pattern recognition systems
- Whistleblower incentives
Section 6: Implementation
6.1. Timeline:
- 30-day initial disclosure period
- 60-day divestment deadline
- 90-day blind trust establishment
- 120-day full compliance requirement
- Annual renewal of certifications
6.2. Compliance Support:
- Technical assistance office
- Educational resources
- Compliance hotline
- Advisory opinions
- Regular training requirements
Section 7: Public Transparency
7.1. Public Access:
- Online searchable database
- Real-time disclosure portal
- Mobile application access
- API for third-party analysis
- Regular compliance reports
7.2. Verification System:
- Independent verification process
- Public certification of compliance
- Regular audit reports
- Violation notifications
- Status tracking system
Section 8: Oversight
8.1. Congressional Oversight:
- Annual effectiveness review
- Public hearings requirement
- Inspector General reports
- GAO investigations
- Public feedback mechanism
8.2. Judicial Review:
- Expedited review process
- Clear standards of evidence
- Enforcement priorities
- Appeal procedures
- Compliance guidelines
Section 9: Family Member Provisions
9.1. Coverage Definition:
- Spouse and dependent children
- Shared household members
- Family business interests
- Trust beneficiaries
- Business partnerships
9.2. Compliance Requirements:
- Separate disclosure requirements
- Independent verification
- Regular audits
- Certification of compliance
- Penalty provisions