[Congressional Record Volume 171, Number 132 (Thursday, July 31, 2025)]
[Senate]
[Page S5125]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3381. Mr. McCORMICK submitted an amendment intended to be proposed 
by him to the bill S. 2296, to authorize appropriations for fiscal year 
2026 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title XII, add the following:

     SEC. 1248. ADVISORY COMMITTEE ON ECONOMIC FALLOUT FROM 
                   CHINESE MILITARY AGGRESSION TOWARD 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 an advisory 
     committee, to be known as the `Financial Stability Oversight 
     Council Advisory Committee on Economic Fallout From Chinese 
     Military Aggression Toward Taiwan' (in this section referred 
     to as the `Advisory Committee'), to--
       ``(A) study and report on the market implications and 
     vulnerabilities related to the military aggression of the 
     People's Republic of China toward Taiwan; and
       ``(B) open lines of communication between policymakers, 
     government agencies, and capital market constituents to 
     prepare for a potential response to, and to mitigate economic 
     strain and market volatility related to, such aggression.
       ``(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 the People's 
     Republic of 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 the military aggression of the 
     People's Republic of China 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 the military 
     aggression of the People's Republic of China toward 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 the aggression, 
     including trading halts such as circuit breakers and other 
     tools for managing liquidity;
       ``(D) the impact on Chinese and Taiwanese securities listed 
     on exchanges in the United States;
       ``(E) the likelihood, and potential impact of, the People's 
     Republic of China reducing, or eliminating, its holdings in 
     obligations issued by the United States; and
       ``(F) the estimated total costs to the United States 
     economy from such aggression.
       ``(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 by the People's 
     Republic of China;
       ``(C) potential retaliatory actions by the Government of 
     the People's Republic of China and the potential response of 
     the United States to those actions;
       ``(D) collaboration and testing of trade halt rules such as 
     circuit breakers across markets; and
       ``(E) avenues for further regulator engagement with capital 
     markets participants.''.
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