[House Report 118-516]
[From the U.S. Government Publishing Office]


118th Congress    }                                      {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                      {     118-516

======================================================================
 
 PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 4763) TO PROVIDE FOR A 
SYSTEM OF REGULATION OF DIGITAL ASSETS BY THE COMMODITY FUTURES TRADING 
 COMMISSION AND THE SECURITIES AND EXCHANGE COMMISSION, AND FOR OTHER 
PURPOSES; PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5403) TO AMEND 
  THE FEDERAL RESERVE ACT TO PROHIBIT THE FEDERAL RESERVE BANKS FROM 
  OFFERING CERTAIN PRODUCTS OR SERVICES DIRECTLY TO AN INDIVIDUAL, TO 
PROHIBIT THE USE OF CENTRAL BANK DIGITAL CURRENCY FOR MONETARY POLICY, 
  AND FOR OTHER PURPOSES; AND PROVIDING FOR CONSIDERATION OF THE BILL 
 (H.R. 192) TO PROHIBIT INDIVIDUALS WHO ARE NOT CITIZENS OF THE UNITED 
      STATES FROM VOTING IN ELECTIONS IN THE DISTRICT OF COLUMBIA

                                _______
                                

May 21, 2024.--Referred to the House Calendar and ordered to be printed

                                _______
                                

              Mrs. Houchin, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                      [To accompany H. Res. 1243]

    The Committee on Rules, having had under consideration 
House Resolution 1243, by a record vote of 8 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 4763, the 
Financial Innovation and Technology for the 21st Century Act, 
under a structured rule. The resolution waives all points of 
order against consideration of the bill. The resolution 
provides one hour of general debate equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Financial Services or their respective designees. 
The resolution provides that in lieu of the amendments in the 
nature of a substitute recommended by the Committees on 
Agriculture and Financial Services now printed in the bill, an 
amendment in the nature of a substitute consisting of the text 
of Rules Committee Print 118-33, modified by the amendment 
printed in part A of the report, shall be considered as adopted 
and the bill, as amended, shall be considered as read. The 
resolution waives all points of order against provisions in the 
bill, as amended. The resolution makes in order only those 
amendments printed in part B of the report. Each such amendment 
may be offered only in the order printed in the report, may be 
offered only by a Member designated in the report, shall be 
considered as read, shall be debatable for the time specified 
in the report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question. All 
points of order against the amendments printed in part B of the 
report are waived. The resolution provides for one motion to 
recommit. The resolution further provides for consideration of 
H.R. 5403, the CBDC Anti-Surveillance State Act, under a 
structured rule. The resolution waives all points of order 
against consideration of the bill. The resolution provides one 
hour of general debate equally divided and controlled by the 
chair and ranking minority member of the Committee on Financial 
Services or their respective designees. The resolution provides 
that the amendment in the nature of a substitute recommended by 
the Committee on Financial Services now printed in the bill 
shall be considered as adopted and the bill, as amended, shall 
be considered as read. The resolution waives all points of 
order against provisions in the bill, as amended. The 
resolution makes in order only those amendments printed in part 
C of the report. Each amendment made in order may be offered 
only in the order printed in the report, may be offered only by 
a Member designated in the report, shall be considered as read, 
shall be debatable for the time specified in the report equally 
divided and controlled by the proponent and an opponent, shall 
not be subject to amendment, and shall not be subject to a 
demand for division of the question. All points of order 
against the amendments printed in part C of the report are 
waived. The resolution provides for one motion to recommit. The 
resolution further provides for consideration of H.R. 192, to 
prohibit individuals who are not citizens of the United States 
from voting in elections in the District of Columbia, under a 
closed rule. The resolution waives all points of order against 
consideration of the bill. The resolution provides that the 
amendment in the nature of a substitute recommended by the 
Committee on Oversight and Accountability now printed in the 
bill shall be considered as adopted and the bill, as amended, 
shall be considered as read. The resolution waives all points 
of order against provisions in the bill, as amended. The 
resolution provides one hour of general debate equally divided 
and controlled by the chair and ranking minority member of the 
Committee on Oversight and Accountability or their respective 
designees. The resolution provides for one motion to recommit.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
H.R. 4763 includes:
    --Clause 10 of rule XXI, which prohibits consideration of a 
measure if it has the net effect of increasing mandatory 
spending over the five-year or ten-year period.
    --Clause 3(c)(6) of rule XIII, which requires the committee 
report on a bill or joint resolution to be considered pursuant 
to a special order of business reported by the Committee on 
Rules include i) a list of related committee and subcommittee 
hearings; and ii) a designation of at least one committee 
hearing that was used to develop or consider such measure.
    The waiver of all points of order against provisions in 
H.R. 4763, as amended, includes:
    --Clause 5(a) of rule XXI, which prohibits a bill or joint 
resolution carrying a tax or tariff measure from being reported 
by a committee not having jurisdiction to report tax or tariff 
measures.
    Although the resolution waives all points of order against 
the amendments printed in part B of the report, the Committee 
is not aware of any points of order. The waiver is prophylactic 
in nature.
    Although the resolution waives all points of order against 
consideration of H.R. 5403, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 5403, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
the amendments printed in part C of the report, the Committee 
is not aware of any points of order. The waiver is prophylactic 
in nature.
    Although the resolution waives all points of order against 
consideration of H.R. 192, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 192, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 228

    Motion by Ms. Leger Fernandez to amend the rule to make in 
order amendments #13, #14, and #15 to H.R. 4763, each offered 
by Representative Casten. Amendment #13 places a two-year 
moratorium to prohibit financial institutions from transacting 
with incoming funds that have been routed through digital asset 
mixers and outgoing funds routed directly to digital asset 
mixers and directs the Treasury Department to conduct a study 
on the illicit uses of digital asset mixers, privacy coins, and 
other anonymity-enhancing technologies; amendment #14 directs 
the Treasury Department to conduct a study on the illicit uses 
of digital asset mixers, privacy coins, and other anonymity-
enhancing technologies; and amendment #15 strikes Title II, 
which would create new opportunities for issuers, including 
non-crypto firms, to escape SEC registration requirements. 
Defeated: 3-8

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Reschenthaler...............................          Nay   Mr. McGovern......................          Yea
Mrs. Fischbach..................................          Nay   Ms. Scanlon.......................          Yea
Mr. Massie......................................  ............  Mr. Neguse........................  ............
Mr. Norman......................................          Nay   Ms. Leger Fernandez...............          Yea
Mr. Roy.........................................          Nay
Mrs. Houchin....................................          Nay
Mr. Langworthy..................................          Nay
Mr. Austin Scott................................          Nay
Mr. Burgess, Chairman...........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 229

    Motion by Mrs. Houchin to report the rule. Adopted: 8-3

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Reschenthaler...............................          Yea   Mr. McGovern......................          Nay
Mrs. Fischbach..................................          Yea   Ms. Scanlon.......................          Nay
Mr. Massie......................................  ............  Mr. Neguse........................  ............
Mr. Norman......................................          Yea   Ms. Leger Fernandez...............          Nay
Mr. Roy.........................................          Yea
Mrs. Houchin....................................          Yea
Mr. Langworthy..................................          Yea
Mr. Austin Scott................................          Yea
Mr. Burgess, Chairman...........................          Yea
----------------------------------------------------------------------------------------------------------------

 SUMMARY OF THE AMENDMENT TO H.R. 4763 IN PART A CONSIDERED AS ADOPTED

    1. Thompson (PA): Requires fees during the period when 
entities may file a notice of intent to register as a digital 
commodity exchange, broker, or dealer to be set by the 
appropriators.

     SUMMARY OF THE AMENDMENTS TO H.R. 4763 IN PART B MADE IN ORDER

    1. Casar (TX): Changes the new crowdfunding exemption from 
$75 million to $5 million. $5 million is the same as the 
current crowdfunding exemption. (10 minutes)
    2. Pettersen (CO): Clarifies the application of the Bank 
Secrecy Act to digital asset and digital commodity entities and 
requires a GAO study on risks posed by centralized 
intermediaries that are primarily located in foreign 
jurisdictions without regulatory requirements similar to those 
of the Bank Secrecy Act. (10 minutes)
    3. Norman (SC): Requires a study on the impact of digital 
asset registrants owned by foreign adversaries. (10 minutes)
    4. Perry (PA): Adds a sense of Congress to the end of title 
V that nothing in this Act or any amendment made by this Act 
should be interpreted to authorize any entity to regulate any 
commodity, other than a digital commodity, on any spot market. 
(10 minutes)

     SUMMARY OF THE AMENDMENTS TO H.R. 5403 IN PART C MADE IN ORDER

    1. Ogles (TN): Adds a sense of Congress that the Board of 
Governors of the Federal Reserve System and the Federal Open 
Market Committee should not be permitted to develop, create, or 
implement a central bank digital currency, or use any such tool 
to implement monetary policy. (10 minutes)
    2. Mooney (WV), Norman (SC), Sessions (TX), Rose (TN), 
Davidson (OH), Duncan (SC), Brecheen (OK), Self (TX), Weber 
(TX), Ogles (TN): Prohibits the Federal Reserve's Central Bank 
Digital Currency (CBDC) pilot programs. (10 minutes)
    3. Davidson (OH): Ensures the Federal Reserve Bank cannot 
design, build, develop, establish, or issue a CBDC. Ensures the 
Treasury Department cannot direct the Federal Reserve Bank to 
do any of the above actions. (10 minutes)

      PART A--TEXT OF AMENDMENT TO H.R. 4763 CONSIDERED AS ADOPTED

  Page 219, strike line 13.
  Page 219, line 14, strike ``(A)'' and insert ``(1)'' and 
adjust the margin 2 ems to the left.
  Page 219, strike line 22 and all that follows through page 
222, line 11, and insert the following:
          (2) Amount.--The fees authorized under paragraph (1) 
        may be collected and available for obligation only in 
        the amounts provided in advance in an appropriation 
        Act.
  Page 222, line 12, strike ``(4)'' and insert ``(2)''.
  Page 224, line 7, strike ``filing fees and annual''.
  Page 224, line 10, strike ``maximum amount determined under 
subsection (a)(2)(B)(ii)'' and insert ``amount provided under 
subsection (a)(2)''.
  Page 224, strike line 16 and all that follows through page 
225, line 6, and insert the following:
  (e) Deposit of Fees Into the Treasury.--All amounts collected 
under this section shall be credited to the currently 
applicable appropriation, account, or fund of the Commission as 
discretionary offsetting collections, and shall be available 
for the purposes authorized in subsection (f) only to the 
extent and in the amounts provided in advance in appropriations 
Acts.
  (f) Authorization of Appropriations.--In addition to amounts 
otherwise authorized to be appropriated to the Commission, 
there is authorized to be appropriated to the Commission 
amounts collected under this section to cover the costs the 
costs of carrying out the functions of the Commission under 
this Act.
  Page 244, line 5, strike ``The'' and insert ``Subject to the 
availability of funds, the''.
  Page 247, line 25, strike ``15H(c)'' and insert ``15I(a)''.
  Page 248, line 1, strike ``4v(c)'' and insert ``4v(a)''.

         PART B--TEXT OF AMENDMENTS TO H.R. 4763 MADE IN ORDER

 1. An Amendment To Be Offered by Representative Casar of Texas or His 
                   Designee, Debatable for 10 Minutes

  Page 68, line 11, strike ``$75,000,000'' and insert 
``$5,000,000''.
                              ----------                              


 2. An Amendment To Be Offered by Representative Pettersen of Colorado 
               or Her Designee, Debatable for 10 Minutes

  In title I, add at the end the following:

SEC. 112. APPLICATION OF THE BANK SECRECY ACT.

  (a) In General.--Section 5312 of title 31, United States 
Code, is amended--
          (1) in subsection (a)(2)(G), by striking ``or 
        dealer'' and inserting ``, dealer, digital asset 
        broker, digital asset dealer, or digital asset trading 
        system''; and
          (2) in subsection (c)(1)(A)--
                  (A) by inserting ``digital commodity broker, 
                digital commodity dealer,'' after ``futures 
                commission merchant,''; and
                  (B) by inserting before the period the 
                following: ``and any digital commodity exchange 
                registered, or required to register, under the 
                Commodity Exchange Act which permits direct 
                customer access''.
  (b) GAO Study.--
          (1) In general.--The Comptroller General of the 
        United States, in consultation with the Secretary of 
        the Treasury, shall conduct a study to--
                  (A) assess the risks posed by centralized 
                intermediaries that are primarily located in 
                foreign jurisdictions that provide services to 
                U.S. persons without regulatory requirements 
                that are substantially similar to the 
                requirements of the Bank Secrecy Act; and
                  (B) provide any regulatory or legislative 
                recommendations to address these risks under 
                subparagraph (A).
          (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General shall 
        issue a report to Congress containing all findings and 
        determinations made in carrying out the study required 
        under paragraph (1).
  Page 105, strike lines 1 through 4.
  Page 121, strike line 7 and all that follows through ``Bank 
Secrecy Act.'' on line 10.
  Page 183, strike lines 14 through 17.
  Page 215, strike line 6 and all that follows through ``Bank 
Secrecy Act.'' on line 9.
                              ----------                              


    3. An Amendment To Be Offered by Representative Norman of South 
           Carolina or His Designee, Debatable for 10 Minutes

  At the end of title IV, add the following:

SEC. 414. STUDIES ON FOREIGN ADVERSARY PARTICIPATION.

  (a) In General.--The Secretary of the Treasury, in 
consultation with the Commodity Futures Trading Commission and 
the Securities and Exchange Commission, shall, not later than 1 
year after date of the enactment of this section, conduct a 
study and submit a report to the relevant congressional 
committees that--
          (1) identifies any digital asset registrants which 
        are owned by governments of foreign adversaries;
          (2) determines whether any governments of foreign 
        adversaries are collecting personal data or trading 
        data about United States persons in the digital asset 
        markets; and
          (3) evaluates whether any proprietary intellectual 
        property of digital asset registrants is being misused 
        or stolen by any governments of foreign adversaries.
  (b) GAO Study and Report.--
          (1) In general.--The Comptroller General shall, not 
        later than 1 year after date of the enactment of this 
        section, conduct a study and submit a report to the 
        relevant congressional committees that--
                  (A) identifies any digital asset registrants 
                which are owned by governments of foreign 
                adversaries;
                  (B) determines whether any governments of 
                foreign adversaries are collecting personal 
                data or trading data about United States 
                persons in the digital asset markets; and
                  (C) evaluates whether any proprietary 
                intellectual property of digital asset 
                registrants is being misused or stolen by any 
                governments of foreign adversaries.
  (c) Definitions.--In this section:
          (1) Digital asset registrant.--The term ``digital 
        asset registrant'' means any person required to 
        register as a digital asset trading system, digital 
        asset broker, digital asset dealer, digital commodity 
        exchange, digital commodity broker, or digital 
        commodity dealer under this Act.
          (2) Foreign adversaries.--The term ``foreign 
        adversaries'' means the foreign governments and foreign 
        non-government persons determined by the Secretary of 
        Commerce to be foreign adversaries under section 7.4(a) 
        of title 15, Code of Federal Regulations.
          (3) Relevant congressional committees.--The term 
        ``relevant congressional committees'' means--
                  (A) the Committees on Financial Services and 
                Agriculture of the House of Representatives; 
                and
                  (B) the Committees on Banking, Housing, and 
                Urban Affairs and Agriculture, Nutrition, and 
                Forestry of the Senate.
                              ----------                              


 4. An Amendment To Be Offered by Representative Perry of Pennsylvania 
               or His Designee, Debatable for 10 Minutes

  At the end of title V, add the following:

SEC. __. SENSE OF THE CONGRESS.

  It is the sense of the Congress that nothing in this Act or 
any amendment made by this Act should be interpreted to 
authorize any entity to regulate any commodity, other than a 
digital commodity, on any spot market.

         PART C--TEXT OF AMENDMENTS TO H.R. 5403 MADE IN ORDER

 1. An Amendment To Be Offered by Representative Ogles of Tennessee or 
                 His Designee, Debatable for 10 Minutes

    Add at the end the following:

SEC. 7. SENSE OF CONGRESS.

    It is the sense of Congress that the Board of Governors of 
the Federal Reserve System should not be permitted to develop, 
create, or implement a central bank digital currency, or use 
any such tool to implement monetary policy.
                              ----------                              


2. An Amendment To Be Offered by Representative Mooney of West Virginia 
               or His Designee, Debatable for 10 Minutes

  Add at the end the following:

SEC. 7. PROHIBITION ON CENTRAL BANK DIGITAL CURRENCY TESTING.

  Section 16A of the Federal Reserve Act, as added by section 
5, is amended by adding at the end the following:
  ``(C) Prohibition on Central Bank Digital Currency Testing.--
Unless authorized by an Act of Congress enacted after the date 
of the enactment of this Act, the Board of Governors of the 
Federal Reserve System and the Federal reserve banks may not 
establish, carry out, or approve a program intended to test the 
practicability of issuing a central bank digital currency, 
including by partnering or coordinating with a private sector 
entity to carry out such a program.''.
                              ----------                              


3. An Amendment To Be Offered by Representative Davidson of Ohio or His 
                   Designee, Debatable for 10 Minutes

  Page 5, line 10, insert ``design, build, develop, establish, 
or'' before ``issue''.
  Page 5, line 22, insert ``design, build, develop, establish, 
or'' before ``issue''.

                                  [all]