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[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.
                                 <all>
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