No Shorting America Act

This bill, called the No Shorting America Act, would ban Members of Congress and their spouses and dependents from short selling stocks or similar investments that are listed on national stock exchanges. If someone breaks this rule, they can’t write off any losses from those short sales on their income taxes.

Lawmakers would also have to sign a pledge saying they’re following the rules. The ethics office would give them a compliance certificate and post those certificates on a public website. If there’s willful noncompliance, the ethics office must refer it to the Attorney General, who could seek a civil fine of up to $50,000. These fines can’t be paid with official office funds or campaign money.

• Who is affected: Members of Congress, their spouses, and dependents.
• What changes: No short selling of exchange-listed investments; no tax write-offs for illegal short-sale losses; public proof of compliance required.
• Penalties: Possible civil fine up to $50,000 for knowing, willful violations; fines can’t be paid with official or campaign funds.