[Congressional Record Volume 162, Number 137 (Monday, September 12, 2016)]
[House]
[Pages H5300-H5302]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1745
   EXPRESSING THE SENSE OF THE HOUSE REGARDING A NATIONAL POLICY FOR 
 TECHNOLOGY TO PROMOTE CONSUMERS' ACCESS TO FINANCIAL TOOLS AND ONLINE 
                                COMMERCE

  Mr. BURGESS. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 835) expressing the sense of the House of 
Representatives that the United States should adopt a national policy 
for technology to promote consumers' access to financial tools and 
online commerce to promote economic growth and consumer empowerment.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 835

       Whereas technology solutions have the potential to improve 
     consumers' ability to control their economic well-being, to 
     encourage their financial literacy, and improve their 
     knowledge base and increase their options to manage their 
     finances and engage in commerce;
       Whereas new payment methods and new payment strategies 
     reflect new commercial opportunities;
       Whereas the United States is the world leader in software 
     development and technology creation;
       Whereas financial technology is creating new opportunities 
     for the 24,800,000 underbanked households in the United 
     States;
       Whereas the growth of consumers' use of mobile devices and 
     the deployment of broadband access has supported the growth 
     of financial technology products and services outside of 
     traditional products and services offered by banks and other 
     financial institutions in the United States increasing 
     commerce and job growth;
       Whereas identity theft is a rising concern for people in 
     the United States as their personal information is targeted 
     by criminal enterprises for monetization on the black market;
       Whereas cyberattacks against domestic and international 
     financial institutions and cooperatives continue;
       Whereas emerging payment options, including alternative 
     non-fiat currencies, are leveraging technology to improve 
     security through increased transparency and verifiable trust 
     mechanisms to supplant decades old payment technology 
     deployed by traditional financial institutions; and
       Whereas blockchain technology with the appropriate 
     protections has the potential to fundamentally change the 
     manner in which trust and security are established in online 
     transactions through various potential applications in 
     sectors including financial services, payments, health care, 
     energy, property management, and intellectual property 
     management: Now, therefore, be it
       Resolved, That it is the sense of the House of 
     Representatives that--
       (1) the United States should develop a national policy to 
     encourage the development of tools for consumers to learn and 
     protect their assets in a way that maximizes the promise 
     customized, connected devices hold to empower consumers, 
     foster future economic growth, create new commerce and new 
     markets;
       (2) the United States should prioritize accelerating the 
     development of alternative technologies that support 
     transparency, security, and authentication in a way that 
     recognizes their benefits, allows for future innovation, and 
     responsibly protects consumers' personal information;
       (3) the United States should recognize that technology 
     experts can play an important role in the future development 
     of consumer-facing technology applications for manufacturing, 
     automobiles, telecommunications, tourism, health care, 
     energy, and general commerce;
       (4) the United States should support further innovation, 
     and economic growth, and ensure cybersecurity, and the 
     protection of consumer privacy; and
       (5) innovators in technology, manufacturing, automobiles, 
     telecommunications, tourism, health care, and energy 
     industries should commit to improving the quality of life for 
     future generations by developing safe and consumer 
     protective, new technology aimed at improving consumers' 
     access to commerce.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Burgess) and the gentleman from Illinois (Ms. Schakowsky) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. BURGESS. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and insert extraneous materials into the Record on the resolution.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. BURGESS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H. Res. 835.
  Mr. Speaker, as chairman of the Subcommittee on Commerce, 
Manufacturing, and Trade, I have chaired two hearings in our Disrupter 
Series exploring fintech. Over the last year, the subcommittee has 
examined mobile payments, digital currencies, and blockchain 
technology. There is no question that this new technology is changing 
the face of global payments and commerce.
  The rise of the smartphone has drastically changed consumer behavior

[[Page H5301]]

when it comes to mobile payments. Checking an online account and 
transferring money is as easy as checking email on your smartphone.
  In 2014, 22 percent of mobile phone users reported making a purchase 
on their phone. Thirty-nine percent used their phones to make a 
purchase in a store.
  Global investment in financial technology ventures tripled in 2014 to 
$12 billion, and increased 67 percent in the first quarter of 2016. 
Payment companies and marketplace lenders account for about two-thirds 
of these highly valued startups.
  One of the cutting-edge areas of this innovation is around 
blockchain, a ledger-based technology fundamentally based on 
transparency. Blockchain technology holds the potential to disrupt 
healthcare records management, manufacturing supply chain management, 
real estate recordkeeping, international clearing and settlement 
functions, and even regulatory oversight by government agencies.
  Peer-to-peer asset transfer online has been a challenge for a number 
of industries since the rise of the Internet. Blockchain technology has 
offered one potential solution that many industries could leverage in 
the future to protect their intellectual property.
  There is no doubt that blockchain innovations are on the cutting edge 
today. For every story about the amazing potential applications, there 
is another story outlining a doomsday scenario. While innovation can be 
frightening, discovery should be encouraged because the public will 
never see the benefits without assuming some measured risk.
  This resolution reaffirms Congress' commitment to innovation. I 
support H. Res. 835, and I would like to thank Mr. Kinzinger and Mr. 
Cardenas for their leadership on this issue.
  Mr. Speaker, I reserve the balance of my time.
  Ms. SCHAKOWSKY. Mr. Speaker, I yield myself such time as I may 
consume.
  I want to acknowledge the work of Congressman Kinzinger and 
Congressman Cardenas in bringing this resolution to the floor today.
  In the last year or so, fintech, financial technology, has become the 
new buzzword on Capitol Hill.
  Finance and technology have long had a close relationship. For 
decades, banks have been able to send money between themselves nearly 
instantaneously. Consumers have easy access to online and mobile 
banking services.
  Now, more technology is coming into consumers' hands. Person-to-
person payment apps have made check-splitting at restaurants much less 
of an ordeal. Blockchain is being used to send remittances around the 
world.
  The challenge for Federal regulators is to understand and adapt to 
this new technology. Fintech does not always involve traditional 
financial institutions. It has increased the amount of potentially 
sensitive consumer information being stored and transmitted. If we want 
innovation to continue and for consumers to trust this technology, we 
must ensure that data security is baked in.
  We also need to consider how new technology works with existing rules 
to prevent money laundering and terrorist financing. These are not easy 
issues, but they are critical to furthering innovation, which I hope 
will lead to lower costs and better services for consumers.
  This resolution recognizes that Congress and Federal agencies need to 
be working on policies that promote the responsible development of 
fintech. I look forward to working with my colleagues to do just that.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BURGESS. Mr. Speaker, I yield 5 minutes to the gentleman from 
Illinois (Mr. Kinzinger), the author of this legislation, in support of 
his resolution.
  Mr. KINZINGER of Illinois. Mr. Speaker, I want to thank the chairman 
and Ranking Member Schakowsky for their work on this and their help.
  I rise today in support of H. Res. 835. It is a resolution adopting a 
national policy to promote economic growth and consumer access to 
financial tools through technology.
  I introduced this resolution with the gentleman from California (Mr. 
Cardenas) earlier this year to highlight the importance of supporting a 
growing industry at the intersection of consumer finance and 
technology, otherwise known as fintech. I would like to thank him for 
joining me to ensure that the United States is competitively positioned 
to leverage this next wave of technology for the economy and for 
consumers' benefits.
  Fintech is leading the charge in taking payments to the next level in 
terms of speed, convenience, efficiency, and accessibility, and is 
fundamentally changing the amount of transparency and control consumers 
have over their information.
  Fintech startups have created a surge in payment innovation, ranging 
from new mobile payment options to digital currencies outside of 
traditional government-issued currency. There are over 2,000 fintech 
startups, and more than a dozen that are currently valued at over $1 
billion.

  Mobile payments revenues in 2016 are expected to surpass the $600 
billion mark, and this year, 45 percent of consumers use some form of 
mobile payments. And with that investment comes new jobs and new 
opportunities.
  Given all of this, there is still a host of questions about these 
offerings that industry and government at all levels must continue to 
work through. Questions about security, privacy, and consumer 
protection are important and will guide how public and private entities 
continue to review and assess emerging technologies.
  However, potential risks and 20th century silos between government 
agencies should not hamper innovation in this space.
  In an age where mobile devices are ubiquitous, consumers are 
demanding a higher level of transparency and control over their 
financial information. Due to the proliferation of mobile devices, we 
have an opportunity to capitalize on an emerging technology that we 
cannot afford to miss out on. The only question is who is going to lead 
the way in this process.
  This resolution sends a clear message that it will be the United 
States, and that Congress supports continued innovation and consumer 
empowerment.
  Again, I want to just say thank you to my friends on both sides of 
the aisle for bringing this up, what I think is a very good bipartisan 
resolution and a good first step to doing what we need to do.
  Ms. SCHAKOWSKY. Mr. Speaker, it is my pleasure to yield such time as 
he may consume to the gentleman from California (Mr. Cardenas), the 
cosponsor and coauthor of this resolution.
  Mr. CARDENAS. Mr. Speaker, I want to thank my colleague and friend 
for yielding the time, and also for her leadership, my colleague, Ms. 
Schakowsky.
  And also to my colleague, Congressman Kinzinger, I thank him for 
introducing this legislation. It is my honor to work with the 
gentleman, and especially across the aisle on something that we all 
agree on and realize that this is something that we need to take 
responsible steps in harnessing here in this country when it comes to 
the issue at hand.
  Today, financial service companies are undergoing another profound 
era of change. In the United States alone, there are 85 million 
millennials, a generation considerably more open to nontraditional 
financial services than past generations. This is almost the same 
amount of Americans who have little or no relationship with a bank. 
That means no checking or savings account for those people.
  We also know that there are more than 1 billion smartphones 
worldwide, with more than 200 million in the U.S. alone. People today 
have 24-hours-a-day mobile access to financial services providers, 
regardless of how far they are from the nearest bank branch.
  The fintech revolution can bridge the gap between those who are 
banked and those who are not. Anyone with a cell phone should also be 
able to save, invest, transfer, and improve their financial experience 
safely.
  For example, our society has an unprecedented amount of choices when 
purchasing or selling products in person and/or online.
  Blockchain technology, the system behind bitcoin has the potential to 
fundamentally disrupt the way we think of not just currency exchanges 
but also health care, energy, and intellectual property.
  Of course, every new system must incorporate safeguards against those 
who want to take advantage of it. Finding

[[Page H5302]]

the balance between the development of new technology and the 
protection of our personal information is not only necessary but 
critical. That is why Representative Kinzinger and I introduced H. Res. 
835, the bipartisan financial technology resolution.
  It is time Congress recognizes and encourages innovation, while 
setting the tone for security and transparency. This resolution 
underscores fintech's ability to improve a consumer's experience when 
it comes to managing their finances online.
  It also states that fintech could help increase financial literacy 
rates across the U.S. by creating new opportunities for the nearly 25 
million households in the United States that are still unbanked.
  Let it be known: identity theft is a real concern for all Americans 
at all levels. But the good news is that many within fintech are 
committed to improving security through increased transparency and 
verifiable trust mechanisms.
  Not only does fintech give small businesses and consumers an 
alternative way to bank, it also offers the possibility of a safer, 
more convenient financial experience while creating U.S. jobs.
  Seeing as the United States is the world leader in software 
development and technology, it is in our best interest to develop a 
national policy. We must drive innovation, boost economic growth, and 
ensure the protection of every American's personal information.
  Fintech not only makes products and services more accessible to the 
consumer, but it can also make these services more affordable. It is 
needless to say that fintech has great potential in our future.
  We need to do what we have to, as government, to unleash the 
creativity, convenience, but more importantly, its responsible and safe 
environment for these technologies, all the while, seeing to it that we 
stay out of the way of getting in the way of the billions and 
eventually trillions of dollars that will be manifested through this 
new industry; and that means, jobs, jobs, jobs right here in America.
  If we don't harness this policy, if we don't work with the 
industries, if we don't do our job as making sure that we set the tone, 
not only for this country but for the world, we may find ourselves 
missing out on this tremendous opportunity on behalf of the American 
public and the American worker.
  I urge my colleagues to vote ``yes'' on H. Res. 835, the bipartisan 
fintech bill.
  Ms. SCHAKOWSKY. Mr. Speaker, I look forward to the passage of H. Res. 
835.
  I yield back the balance of my time.
  Mr. BURGESS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, this resolution reaffirms Congress' commitment to 
innovation. I support H. Res. 835. I want to thank again Mr. Kinzinger 
and Mr. Cardenas for their leadership.
  I yield back the balance of my time.
  Mr. CARTER of Georgia. Mr. Speaker, I rise today in support of H. 
Res. 835, which encourages the development of new technologies that 
increase consumers' access to commerce and financial tools. This is an 
exciting time in American Commerce.
  Each day, innovators are connecting consumers, industries, and 
markets through brand new technologies and connected devices. These new 
technologies will empower American consumers and our economy like never 
before. With innovations coming so rapidly, we need to ensure that 
these new technologies are not at the expense of consumer privacy and 
cybersecurity.
  These resolutions would support American innovation in financial 
technology, transparency, security, and consumer empowerment while 
protecting consumers' personal information. By improving consumers' 
access to commerce through technological means, we can greatly improve 
the quality of life for future Americans.
  I urge my colleagues to support this resolution so that our 
innovators can confidently take on the challenge of developing 
technology for tomorrow's marketplace
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Burgess) that the House suspend the rules and 
agree to the resolution (H. Res. 835.)
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. BURGESS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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