Bill Overview
Title: PORTFOLIO Act
Description: This bill generally prohibits federal employees and officials from owning or trading in synthetic assets (i.e., tokenized derivatives). It also establishes financial disclosure requirements with respect to cryptocurrency. Specifically, the bill prohibits federal employees, Members of Congress, the President, and Vice President from owning or trading investments in a security, a commodity, a future, cryptocurrency, or any comparable economic interest acquired through synthetic means, such as through a derivative. Such investments must be divested through gift or donation, cashing out, or a qualified blind trust. The appropriate ethics office may grant temporary exemptions in certain situations, such as for preexisting complex financial arrangements from which investments cannot be withdrawn, and may assess fees for violations. The Department of Justice may also bring civil actions for violations. The bill also (1) incorporates cryptocurrency and other digital assets into current financial disclosure requirements; (2) modifies the categories and timelines for financial disclosures; and (3) requires agencies, ethics offices, and the Department of Justice to regularly report on violations of this bill and other related requirements.
Sponsors: Rep. Schweikert, David [R-AZ-6]
Target Audience
Population: Federal employees and officials
Estimated Size: 500000
- The PORTFOLIO Act explicitly targets 'federal employees and officials' meaning all individuals working for the federal government.
- This includes Members of Congress as well as the President and Vice President.
- The bill requires changes in financial behavior and disclosures for those holding specific types of financial instruments, specifically synthetic assets and cryptocurrencies.
- Federal employees and officials are required to divest from certain investments unless exemptions apply.
- The bill modifies financial disclosure requirements related to digital assets, impacting personal financial reporting for these individuals.
Reasoning
- The target population for this policy is federal employees and officials, who number around 2 million individuals, but the specific impact is likely on a smaller subset involved with synthetic assets or cryptocurrencies.
- The PORTFOLIO Act's financial disclosure and divestment requirements are targeted and do not have a wide sweeping economic impact outside this group.
- There will be variance in the policy impact as individuals with substantial investments in affected areas versus those who do not will experience the policy differently.
- Wellbeing was gauged based on the potential stress or relief from divestment requirements, along with transparency and accountability objectives in the policy.
Simulated Interviews
Congressional Representative (Washington, DC)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm concerned about the limitations on trading as it directly impacts my financial strategy.
- This policy increases transparency, but I fear it may overly restrict how I manage my own portfolio.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 7 |
Federal Judge (San Francisco, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy doesn't affect me greatly as I don't engage in the assets being restricted.
- I support the increase in transparency this policy brings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Federal Program Analyst (New York, NY)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I need to adjust my portfolio but it's a minor nuisance.
- Policy helps ensure fair practices and reduces conflicts of interest.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Federal Department Head (Austin, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- It's quite burdensome to restructure my investments due to this act.
- I agree with the principles of accountability but feel unfairly targeted.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
White House Appointee (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I'm minimally affected by the policy in terms of my investments.
- I support any moves that increase government accountability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Federal Contractor (Miami, FL)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- This doesn't impact me directly, but seems like it creates a fairer environment.
- Limited trading freedom for some officials may lead to a more ethical workspace.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Federal Environmental Researcher (Seattle, WA)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I'll need to divest from a few assets, which is inconvenient.
- I understand the need for greater oversight of elected officials' finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Retired Federal Employee (Los Angeles, CA)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I appreciate the integrity this policy may bring to government operations.
- Though not impacted, I support efforts for financial fairness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 10 | 10 |
Congressional Staffer (Boston, MA)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- Restrictions are frustrating as I see crypto as a part of my financial future.
- Policy creates accountability but might stifle personal financial growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 7 |
Federal Auditor (Denver, CO)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I am not personally affected, but I value a policy that increases transparency.
- Honest disclosures are beneficial for trust in government.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $2500000 (Low: $2000000, High: $3000000)
Year 2: $2500000 (Low: $2000000, High: $3000000)
Year 3: $2500000 (Low: $2000000, High: $3000000)
Year 5: $3000000 (Low: $2500000, High: $3500000)
Year 10: $3500000 (Low: $3000000, High: $4000000)
Year 100: $4000000 (Low: $3500000, High: $4500000)
Key Considerations
- The bill's success heavily depends on the enforcement mechanisms and how effectively they can implement the restrictions and disclosure enhancements.
- The divestment process may create ethical and legal challenges, requiring robust administration.
- Costs could increase significantly if large-scale changes in financial reporting systems are necessary.