U.S. Lawmaker Proposes Ban on Digital Assets, Prediction Market Contracts for Officials

Democratic Representative Eugene Vindman introduced the Sell Your Stocks or Step Down Act, H.R. 10199, in the House on August 31. According to ChainCatcher, the bill would bar the U.S. president, vice president, members of Congress, senior executive officials, federal judges, and some immediate family members from buying or holding restricted assets, including digital assets, commodities and futures, prediction market contracts, and individual stocks. The proposal would require covered individuals to sell all restricted assets within 30 days after the law takes effect, while allowing continued holdings in U.S. Treasuries, state and municipal bonds, and certain diversified publicly traded funds. Violations could trigger daily fines of up to 10% of the market value of the asset, capped at 50% of the asset's total value, as well as a penalty equal to the value of the traded assets plus $10,000 and forfeiture of any profits from the transaction. The bill is still in its early stage and has been referred to committee. It signals growing scrutiny in Washington of potential conflicts of interest tied to digital assets and prediction market contracts.