1. Short title This Act may be cited as the Prohibit Insider Trading Act . 2. Prohibiting transactions and ownership of certain financial instruments by Members of Congress and their spouses (a) In general Chapter 131 of title 5, United States Code, is amended by adding after subchapter III the following: IV Restrictions Regarding Financial Instruments 13151. Definitions In this subchapter— (1) the term covered financial instrument — (A) means— (i) any investment in— (I) a security (as defined in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); (II) a security future (as defined in that section); or (III) a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); and (ii) any economic interest comparable to an interest described in subclause (I) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means; and (B) does not include— (i) a diversified mutual fund; (ii) a diversified exchange-traded fund; (iii) any investment in the Thrift Savings Plan; or (iv) a United States Treasury bill, note, or bond; (2) the term Member of Congress has the meaning given that term in section 13101; (3) the term supervising ethics office has the meaning given that term in section 13101; and (4) the term qualified blind trust has the meaning given that term in section 13104(f)(3). 13152. Prohibition on certain transactions and holdings involving covered financial instruments (a) Prohibition Except as provided in subsection (b), a Member of Congress and the Member’s spouse may not, during the term of service of the Member, hold, purchase, or sell any covered financial instrument. (b) Exceptions The prohibition under subsection (a)— (1) shall begin to apply with respect to a Member of Congress who commences service as a Member after the date of enactment of this subchapter on the date that is seven days after the first date of the initial term of service