[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8278 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8278
To require certain supervisory agencies to assess their technological
capabilities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 14, 2026
Mr. Stutzman (for himself and Mr. Foster) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require certain supervisory agencies to assess their technological
capabilities, 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 ``Fostering the Use of Technology to
Uphold Regulatory Effectiveness in Supervision Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Banking regulators continue to examine and monitor
depository institutions without sufficient access to real-time
information.
(2) Supervisory regulators should leverage technologies to
more effectively carry out their duties.
(3) When updating supervisory technology, risks surrounding
technology procurement must be effectively managed.
(4) Agencies' reliance on outdated technology can create
vulnerabilities for the financial system, through--
(A) difficulties in collecting, compiling, and
analyzing relevant information about risks and
noncompliance at supervised firms;
(B) reliance on information that is inaccurate,
incomplete, or not timely;
(C) reliance on limited and outdated tools for data
analysis;
(D) difficulties in using data to identify risk
trends;
(E) difficulties in producing accurate and timely
reports;
(F) inadequacy of cybersecurity safeguards; and
(G) failure to detect illegal activities.
(5) The rapid expansion of financial firms' use of
artificial intelligence may generate opportunities to improve
the financial system while also introducing a range of risks,
making it essential that agencies be equipped with the
technology, expertise, and skills needed to analyze these
opportunities and potential risks.
(6) While agencies assess their supervisory capabilities on
an ongoing basis, it is imperative that there be a unified goal
of enhancing supervisory technologies that ensure effective and
sustainable oversight.
SEC. 3. TECHNOLOGICAL CAPABILITIES AND PROCUREMENT PRACTICES
ASSESSMENT.
(a) In General.--
(1) Technological capabilities assessment.--Each covered
agency shall, not later than 180 days after the date of the
enactment of this section, assess how existing technologies
used by the covered agency pose challenges to the covered
agency in conducting adequate, real-time supervisory
assessments of entities over which the covered agency has
supervisory authority. Such technologies include, as
applicable--
(A) core information technology infrastructure;
(B) technologies used to supervise entities;
(C) technologies for monitoring general market
risks using reported data and external data; and
(D) technologies for data collection, storage,
processing, and security.
(2) Procurement practices assessment.--Each covered agency
shall, not later than 180 days after the date of the enactment
of this section--
(A) assess the procurement rules and protocols
adhered to by such covered agency when such covered
agency acquires or develops new technological systems;
and
(B) identify any opportunities to further
streamline procurement rules and protocols, including
an assessment of the impact such rules or protocols
have on the ability of the covered agency to test new
technological systems, that are within the covered
agency's authority to streamline.
(b) Report.--Not later than 18 months after the completion of the
assessments required under subsection (a), and for every 5 years
thereafter, the covered agencies shall coordinate and jointly submit to
the Committee on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate, in
a manner that does not pose a risk to the integrity or security of any
technologies, systems, or capabilities of covered agencies, regulated
entities, or market participants, a report that includes, as
applicable, the following with respect to each covered agency:
(1) A general overview of hardware and software used for
information gathering and advanced analytics during supervision
activities, including categories of technology purchased from
vendors and developed by the covered agency or contractors of
the covered agency.
(2) A description of the procurement practices and
protocols of the covered agency, including a description of--
(A) whether such processes are voluntarily adhered
to or mandated; and
(B) any opportunities to further streamline
procurement rules and protocols, including an
assessment of the impact such rules or protocols have
on the ability of the covered agency to test new
technological systems.
(3) A general overview of the portion of the workforce of
the covered agency that is engaged materially in technology
development within the covered agency, including--
(A) an overview of the ability of the covered
agency to recruit and retain appropriate technology
experts; and
(B) a description of the degree to which the
covered agency relies on contractors to design,
develop, or deploy technology and perform technology-
related tasks.
(4) A general description of the processes used by the
covered agency to obtain information from entities supervised
by the covered agency and any impediments thereto, including
regulatory obstacles.
(5) General information about market and technology trends
and risks in the underlying regulated markets including,
specific to the covered agency's jurisdiction--
(A) market developments influenced by the adoption
of new technologies;
(B) the use of new technologies by supervised
entities for compliance and risk management purposes;
(C) the impact of new technologies on the
collection and analysis of data submitted to the
covered agencies by supervised entities as required by
regulation, including on data quality,
interoperability, and standardization; and
(D) potential risks, including risks of illicit
activity, related to new technologies.
(6) A general description of the ways in which the covered
agency shares information or system access with other covered
agencies and any impediments thereto, including regulatory
obstacles.
(7) An estimate of the costs for supervised entities to
modify systems to share data with covered agencies, as
appropriate.
(8) A general description of any plans of the covered
agency to implement future upgrades to the technology it uses
to supervise entities, including--
(A) the anticipated timeline for any planned
upgrades;
(B) the costs of any planned upgrades;
(C) any impediments to procuring relevant
technologies;
(D) plans for hiring and training individuals in
connection with technological upgrades;
(E) any aspects of any planned upgrades that should
be addressed on an interagency basis;
(F) any anticipated challenges and opportunities
associated with entities supervised by the covered
agency adapting to the covered agency's reporting
process, including--
(i) estimates of transition costs; and
(ii) estimates of any potential cost
reductions; and
(G) as applicable, the covered agency's
relationships with other covered agencies in their
capacity as delegated examiners.
(c) Covered Agency Defined.--In this section, the ``covered
agency'' means the Board of Governors of the Federal Reserve System,
the Bureau of Consumer Financial Protection, the Federal Deposit
Insurance Corporation, the Department of the Treasury, including the
Office of the Comptroller of the Currency and the Financial Crimes
Enforcement Network, the Federal Housing Finance Agency, and the
National Credit Union Administration.
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