S. 2048

119th CONGRESS 1st Session

To prohibit the purchase of certain securities from covered entities, and for other purposes.

IN THE SENATE OF THE UNITED STATES · June 12, 2025 · Sponsor: Mr. Ricketts · Committee: Committee on Banking, Housing, and Urban Affairs

Table of contents

• S. 2048
  • SEC. 1. Short title
  • SEC. 2. Prohibition on purchase of certain securities from covered entities

SEC. 1. Short title

• This Act may be cited as the PRC Military and Human Rights Capital Markets Sanctions Act of 2025.

SEC. 2. Prohibition on purchase of certain securities from covered entities

• (a) Definitions
  • The term United States person means—
• (b) Prohibition
  • Not later than 90 days after the date of enactment of this Act, the President shall—
    • compile and maintain a single list of covered entities;
    • where possible, include in the list described in paragraph (1) a unique identification number for each covered entity, such as a Committee on Uniform Securities Identification Procedures number or a Stock Exchange Daily Official List number;
    • make the list described in paragraph (1) available to the public; and
    • publicly identify and prohibit the purchase, sale, or holding by a United States person of a—
      • publicly traded security issued by a covered entity;
      • publicly traded security that is derivative of a publicly traded security issued by a covered entity; and
      • security that provides investment exposure to a publicly traded security issued by a covered entity.
• (c) Divestment required
  • (1) In general
    • Notwithstanding subsection (b), a United States person shall divest of all securities described in subsection (b)—
      • with respect to a security identified by the President under subsection (b) before the end of the 90-day period beginning on the date of enactment of this Act, not later than 180 days after the date of enactment of this Act; and
      • with respect to a security identified by the President under subsection (b) after the end of the 90-day period beginning on the date of enactment of this Act, not later than 180 days after the date of such identification.
  • (2) Facilitating divestment transactions
    • Subsection (b) shall not apply to a United States person to the extent the person is facilitating the divestment of securities described in paragraph (1).
• (d) Penalties
  • (1) In general
    • A United States person that violates, attempts to violate, conspires to violate, or causes a violation of this Act shall be subject to the following penalties:
      • A civil penalty in an amount not to exceed the greater of—
        • (i) $250,000; or
        • (ii) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.
      • With respect to a United States person that willfully violates, willfully attempts to violate, willfully conspires to violate, or aids or abets in the commission of a violation of this Act shall be subject to a criminal penalty—
        • (i) of a fine of not more than $1,000,000; or
        • (ii) if such United States person is an individual, a fine of not more than $1,000,000, a term of imprisonment of not more than 20 years, or both.
  • (2) Amount of a transaction defined
    • For purposes of paragraph (1)(A)(ii), the term means— amount of a transaction
      • with respect to a purchase that violates this Act, the purchase price;
      • with respect to a sale that violates this Act, the sale price; and
      • with respect to the holding of a security that violates this Act, the fair market value of the security at the time of the violation.