[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9633 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9633
To codify the Strategic Hub for Innovation and Financial Technology of
the Securities and Exchange Commission and LabCFTC of the Commodity
Futures Trading Commission, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 17, 2024
Mr. Lucas introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Agriculture, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To codify the Strategic Hub for Innovation and Financial Technology of
the Securities and Exchange Commission and LabCFTC of the Commodity
Futures Trading Commission, 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 ``Securing Innovation in Financial
Regulation Act''.
SEC. 2. CODIFICATION OF THE SEC STRATEGIC HUB FOR INNOVATION AND
FINANCIAL TECHNOLOGY.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is
amended by adding at the end the following:
``(l) Strategic Hub for Innovation and Financial Technology.--
``(1) Office established.--There is established within the
Commission the Strategic Hub for Innovation and Financial
Technology (referred to in this section as the `FinHub').
``(2) Purposes.--The purposes of FinHub are as follows:
``(A) To assist in shaping the approach of the
Commission to technological advancements.
``(B) To examine financial technology innovations
among market participants.
``(C) To coordinate the response of the Commission
to emerging technologies in financial, regulatory, and
supervisory systems.
``(3) Director of finhub.--FinHub shall have a Director who
shall be appointed by the Commission, from among individuals
having experience in both emerging technologies and Federal
securities laws and serve at the pleasure of the Commission.
The Director shall report directly to the Commission and
perform such functions and duties as the Commission may
prescribe.
``(4) Responsibilities.--FinHub shall--
``(A) foster responsible technological innovation
and fair competition within the Commission, including
around financial technology, regulatory technology, and
supervisory technology;
``(B) provide internal education and training to
the Commission regarding financial technology;
``(C) advise the Commission regarding financial
technology that would serve the Commission's functions;
``(D) analyze technological advancements and the
impact of regulatory requirements on financial
technology companies;
``(E) advise the Commission with respect to
rulemakings or other agency or staff action regarding
financial technology;
``(F) provide businesses working in emerging
financial technology fields with information on the
Commission, its rules and regulations; and
``(G) encourage firms working in emerging
technology fields to engage with the Commission and
obtain feedback from the Commission on potential
regulatory issues.
``(5) Access to documents.--The Commission shall ensure
that FinHub has full access to the documents and information of
the Commission and any self-regulatory organization, as
necessary to carry out the functions of FinHub.
``(6) Report to congress.--
``(A) In general.--Not later than October 31 of
each year after 2024, FinHub shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the
House of Representatives a report on the activities of
FinHub during the immediately preceding fiscal year.
``(B) Contents.--Each report required under
subparagraph (A) shall include--
``(i) the total number of persons that met
with FinHub;
``(ii) the total number of market
participants FinHub met with, including the
classification of those participants;
``(iii) a summary of general issues
discussed during meetings with persons;
``(iv) information on steps FinHub has
taken to improve Commission services, including
responsiveness to the concerns of persons;
``(v) recommendations--
``(I) with respect to the
regulations of the Commission and the
guidance and orders of the Commission;
and
``(II) for such legislative actions
as FinHub determines appropriate; and
``(vi) any other information, as determined
appropriate by the Director of FinHub.
``(C) Confidentiality.--A report under subparagraph
(A) may not contain confidential information.
``(7) Systems of records.--
``(A) In general.--The Commission shall establish a
detailed system of records (as defined under section
552a of title 5, United States Code) to assist FinHub
in communicating with interested parties.
``(B) Entities covered by the system.--Entities
covered by the system required under subparagraph (A)
include entities or persons submitting requests or
inquiries and other information to Commission through
FinHub.
``(C) Security and storage of records.--FinHub
shall store--
``(i) electronic records--
``(I) in the system required under
subparagraph (A); or
``(II) on the secure network or
other electronic medium, such as
encrypted hard drives or back-up media,
of the Commission; and
``(ii) paper records in secure facilities.
``(8) Effective date.--This subsection shall take effect on
the date that is 180 days after the date of the enactment of
this subsection.''.
SEC. 3. CODIFICATION OF LABCFTC.
(a) In General.--Section 18 of the Commodity Exchange Act (7 U.S.C.
22) is amended by adding at the end the following:
``(c) LabCFTC.--
``(1) Establishment.--There is established in the
Commission LabCFTC.
``(2) Purpose.--The purposes of LabCFTC are to--
``(A) promote responsible financial technology
innovation and fair competition for the benefit of the
American public;
``(B) serve as an information platform to inform
the Commission about new financial technology
innovation; and
``(C) provide outreach to financial technology
innovators to discuss their innovations and the
regulatory framework established by this Act and the
regulations promulgated thereunder.
``(3) Director.--LabCFTC shall have a Director, who shall
be appointed by the Commission and serve at the pleasure of the
Commission. Notwithstanding section 2(a)(6)(A), the Director
shall report directly to the Commission and perform such
functions and duties as the Commission may prescribe.
``(4) Duties.--LabCFTC shall--
``(A) advise the Commission with respect to
rulemakings or other agency or staff action regarding
financial technology;
``(B) provide internal education and training to
the Commission regarding financial technology;
``(C) advise the Commission regarding financial
technology that would bolster the Commission's
oversight functions;
``(D) engage with academia, students, and
professionals on financial technology issues, ideas,
and technology relevant to activities under this Act;
``(E) provide persons working in emerging
technology fields with information on the Commission,
its rules and regulations, and the role of a registered
futures association; and
``(F) encourage persons working in emerging
technology fields to engage with the Commission and
obtain feedback from the Commission on potential
regulatory issues.
``(5) Access to documents.--The Commission shall ensure
that LabCFTC has full access to the documents and information
of the Commission and any self-regulatory organization or
registered futures association, as necessary to carry out the
functions of LabCFTC.
``(6) Report to congress.--
``(A) In general.--Not later than October 31 of
each year after 2024, LabCFTC shall submit to the
Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on its
activities.
``(B) Contents.--Each report required under
paragraph (1) shall include--
``(i) the total number of persons that met
with LabCFTC;
``(ii) a summary of general issues
discussed during meetings with the person;
``(iii) information on steps LabCFTC has
taken to improve Commission services, including
responsiveness to the concerns of persons;
``(iv) recommendations made to the
Commission with respect to the regulations,
guidance, and orders of the Commission and such
legislative actions as may be appropriate; and
``(v) any other information determined
appropriate by the Director of LabCFTC.
``(C) Confidentiality.--A report under paragraph
(A) shall abide by the confidentiality requirements in
section 8.
``(7) Systems of records.--
``(A) In general.--The Commission shall establish a
detailed system of records (as defined in section 552a
of title 5, United States Code) to assist LabCFTC in
communicating with interested parties.
``(B) Persons covered by the system.--The persons
covered by the system of records shall include persons
submitting requests or inquiries and other information
to the Commission through LabCFTC.
``(C) Security and storage of records.--The system
of records shall store records electronically or on
paper in secure facilities, and shall store electronic
records on the secure network of the Commission and on
other electronic media, such as encrypted hard drives
and back-up media, as needed.''.
(b) Conforming Amendments.--Section 2(a)(6)(A) of the Commodity
Exchange Act (7 U.S.C. 2(a)(6)(A)) is amended--
(1) by striking ``paragraph and in'' and inserting
``paragraph,''; and
(2) by inserting ``and section 18(c)(3),'' before ``the
executive''.
(c) Effective Date.--The Commodity Futures Trading Commission shall
implement the amendments made by this section (including complying with
section 18(c)(7) of the Commodity Exchange Act) within 180 days after
the date of the enactment of this Act.
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