[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7954 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7954

 To amend the Financial Stability Act of 2010 to establish an Advisory 
Committee on Economic Fallout From Chinese Military Aggression Towards 
                    Taiwan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 11, 2024

Mr. Luetkemeyer (for himself and Mr. Torres of New York) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Financial Stability Act of 2010 to establish an Advisory 
Committee on Economic Fallout From Chinese Military Aggression Towards 
                    Taiwan, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fortifying U.S. Markets From Chinese 
Military Aggression Act''.

SEC. 2. ADVISORY COMMITTEE ON ECONOMIC FALLOUT FROM CHINESE MILITARY 
              AGGRESSION TOWARDS TAIWAN.

    Section 111 of the Financial Stability Act of 2010 (12 U.S.C. 5321) 
is amended by adding at the end the following:
    ``(k) Advisory Committee.--
            ``(1) Establishment.--There is established the Financial 
        Stability Oversight Council Advisory Committee on Economic 
        Fallout From Chinese Military Aggression Towards Taiwan (the 
        `Advisory Committee') to--
                    ``(A) study and report on the market implications 
                and vulnerabilities related to Chinese military 
                aggression toward Taiwan; and
                    ``(B) open lines of communication between policy 
                makers, government agencies, and capital market 
                constituents to prepare for a potential response to, 
                and to mitigate economic strain and market volatility 
                related to, Chinese aggression in Taiwan.
            ``(2) Members.--
                    ``(A) In general.--The Advisory Committee shall 
                consist of--
                            ``(i) a designee of the Commission;
                            ``(ii) a designee of the Commodity Futures 
                        Trading Commission; and
                            ``(iii) 10 members to be appointed by the 
                        Council from among persons who are--
                                    ``(I) capital markets participants, 
                                including market makers, asset 
                                managers, exchanges, and institutional 
                                investors; or
                                    ``(II) experts on geopolitical risk 
                                related to China.
                    ``(B) Chair.--The Chair of the Advisory Committee 
                shall be a market maker appointed under subparagraph 
                (A)(iii).
            ``(3) Meetings.--The Advisory Committee shall meet in 
        person at least 2 times per year, with additional meetings at 
        the call of the Chair.
            ``(4) Annual study and report on the recommendations of the 
        advisory committee.--The Advisory Committee shall, annually--
                    ``(A) carry out a study on the market implications 
                and vulnerabilities related to Chinese military 
                aggression toward Taiwan;
                    ``(B) develop recommendations and supporting 
                analysis based on the results of the study; and
                    ``(C) hold a public meeting to present the 
                recommendations and analysis to the Council, but with 
                any portions of such recommendations and analysis that 
                implicate national security concerns presented in a 
                closed session.
            ``(5) Permanent status.--The termination provision under 
        section 1013 of title 5, United States Code, shall not apply to 
        the Advisory Committee.
    ``(l) Annual Report.--The Council shall issue an annual public 
report, after analyzing the recommendations and analysis of the 
Advisory Committee provided under subsection (k)(4), detailing the 
following:
            ``(1) Market vulnerabilities related to Chinese aggression 
        in Taiwan, including--
                    ``(A) the safety and soundness of the United States 
                banking and financial systems;
                    ``(B) market impact and potential losses faced by 
                United States and global markets;
                    ``(C) the capacity of United States markets to deal 
                with extreme volatility that could result from 
                aggression, i.e. trading halts, circuit breakers, and 
                other tools for managing liquidity;
                    ``(D) the impact on Chinese and Taiwanese listings 
                in the United States;
                    ``(E) the likelihood, and potential impact of, 
                China reducing, or eliminating, its holding in United 
                States Treasuries; and
                    ``(F) the estimated total costs to the United 
                States economy from Chinese military aggression toward 
                Taiwan.
            ``(2) Recommendations and action items for regulators to 
        make United States capital markets more resilient against 
        market shocks, volatility, and dislocation described under 
        paragraph (1), including with respect to--
                    ``(A) the United States Government's coordination 
                and response;
                    ``(B) ideas for government action to limit the 
                market impacts of a blockade or invasion of Taiwan;
                    ``(C) potential retaliatory actions by China and 
                the potential response of the United States;
                    ``(D) collaboration and testing of trade halt rules 
                and circuit breakers across markets; and
                    ``(E) avenues for further regulator engagement with 
                capital markets participants on the topic.''.
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