Sell Your Stocks or Step Down Act

This bill establishes new restrictions on investment activities for a broad range of federal officials and their immediate families, aiming to prevent conflicts of interest. It prohibits the President, Vice President, Members of Congress, senior executive branch officials, senior judicial officials, and their spouses and dependent children from owning or trading certain investments. The restrictions apply to a wide array of financial instruments, including stocks , digital assets , commodities, futures, and prediction market contracts. Under the bill, covered individuals are barred from purchasing new prohibited investments and must divest any existing ones within 30 days of the bill's enactment or their assumption of office. However, certain assets are exempt, such as widely held diversified investment funds, U.S. Treasury bonds, and interests in small businesses. An exception allows a spouse or dependent child to trade covered investments if it is part of their primary occupation and not owned by the covered official. Failure to divest existing prohibited investments by the deadline results in a daily fee of 10% of the non-compliant portfolio's value, capped at 50% of the fair market value. Any prohibited purchase or trade incurs a fee equal to the investment's value plus $10,000, along with the disgorgement of profits. These penalties are deposited into the Treasury for deficit reduction and cannot be paid using appropriated funds or campaign contributions. Supervising ethics offices are empowered to investigate, assess, and collect these penalties, including through administrative subpoenas and referrals to the Attorney General.