Stop Presidential Profiteering from Digital Assets Act in plain language
1: Short title
This section would let this Act be referred to as the Stop Presidential Profiteering from Digital Assets Act.
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1. Short title This Act may be cited as the Stop Presidential Profiteering from Digital Assets Act .
2: Definitions
This section would define the terms used in the Act. A digital asset would mean a digital representation of value recorded on a cryptographically secured distributed ledger or any similar technology, including but not limited to cryptocurrencies, stablecoins, and meme coins. A covered individual would mean the President or Vice President of the United States, a Member of Congress, any Federal officer or official confirmed by the Senate, or any immediate family member of any of those people. An immediate family member would include a spouse, a child, or another relative residing in the same household. Identifiable traits would include a person's name, image, likeness, signature, slogans, or other personally distinguishing characteristics.
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2. Definitions For the purposes of this Act: (1) Digital asset means a digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology, including but not limited to, cryptocurrencies, stablecoins, and meme coins. (2) Covered individual means: (A) The President or Vice President of the United States; (B) Members of Congress; (C) Any Federal officer or official confirmed by the Senate; or (D) Any immediate family member of such individuals. (3) Immediate family member includes a spouse, child, or other relative residing in the same household. (4) Identifiable traits include name, image, likeness, signature, slogans, or other personally distinguishing characteristics.
3: Prohibition on digital asset exploitation for personal gain
This section would make it unlawful for any person to issue, promote, market, or sell a digital asset that both uses the identifiable traits of a covered individual and is reasonably likely to result in direct or indirect financial gain to that covered individual; both conditions would have to be met. A digital asset meeting both conditions would be presumed to violate the Act regardless of whether the covered individual consented to or endorsed it. Voluntary participation in or authorization of the digital asset by the covered individual would not be a defense to liability under this section.
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3. Prohibition on digital asset exploitation for personal gain (a) Unlawful conduct It shall be unlawful for any person to issue, promote, market, or sell a digital asset that: (1) Uses the identifiable traits of a covered individual; and (2) Is reasonably likely to result in direct or indirect financial gain to such individual. (b) Presumption of violation A digital asset that meets the conditions in subsection (a) shall be presumed to violate this Act, regardless of consent or endorsement by the covered individual. (c) Consent not a defense Voluntary participation or authorization by a covered individual shall not constitute a defense to liability under this section.
4: Enforcement by Securities and Exchange Commission
This section would give the Securities and Exchange Commission exclusive authority to enforce the Act. A person found to have violated the Act would be subject to a civil penalty of up to $250,000 per violation, or an amount equal to the gross financial gain received, whichever amount is greater. The Commission could also seek injunctive relief to prevent the issuance or further distribution of a prohibited digital asset.
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4. Enforcement by securities and exchange commission (a) Authority The Securities and Exchange Commission shall have exclusive authority to enforce the provisions of this Act. (b) Penalties Any person found to have violated this Act shall be subject to: (1) A civil penalty not to exceed $250,000 per violation; or (2) An amount equal to the gross financial gain received, whichever is greater. (c) Injunctive relief The Commission may seek injunctive relief to prevent the issuance or further distribution of prohibited digital assets.
5: Rulemaking
This section would require the Securities and Exchange Commission to issue regulations to implement and enforce the Act no later than 180 days after the Act's enactment.
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5. Rulemaking The Securities and Exchange Commission shall promulgate regulations to implement and enforce this Act no later than 180 days after its enactment.