I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Securing Innovation 

5 in Financial Regulation Act’’. 


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1 SEC. 2. CODIFICATION OF THE SEC STRATEGIC HUB FOR 

2 INNOVATION AND FINANCIAL TECHNOLOGY. 

3 Section 4 of the Securities Exchange Act of 1934 (15 

4 U.S.C. 78d) is amended by adding at the end the fol5 lowing: 

6 ‘‘(l) STRATEGIC HUB FOR INNOVATION AND FINAN7 CIAL TECHNOLOGY.— 

8 ‘‘(1) OFFICE ESTABLISHED.—There is estab9 lished within the Commission the Strategic Hub for 

10 Innovation and Financial Technology (referred to in 

11 this section as the ‘FinHub’). 

12 ‘‘(2) PURPOSES.—The purposes of FinHub are 

13 as follows: 

14 ‘‘(A) To assist in shaping the approach of 

15 the Commission to technological advancements. 

16 ‘‘(B) To examine financial technology inno17 vations among market participants. 

18 ‘‘(C) To coordinate the response of the 

19 Commission to emerging technologies in finan20 cial, regulatory, and supervisory systems. 

21 ‘‘(3) DIRECTOR OF FINHUB.—FinHub shall 

22 have a Director who shall be appointed by the Com23 mission, from among individuals having experience 

24 in both emerging technologies and Federal securities 

25 laws and serve at the pleasure of the Commission. 

26 The Director shall report directly to the Commission 


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1 and perform such functions and duties as the Com2 mission may prescribe. 

3 ‘‘(4) RESPONSIBILITIES.—FinHub shall— 

4 ‘‘(A) foster responsible technological inno5 vation and fair competition within the Commis6 sion, including around financial technology, reg7 ulatory technology, and supervisory technology; 

8 ‘‘(B) provide internal education and train9 ing to the Commission regarding financial tech10 nology; 

11 ‘‘(C) advise the Commission regarding fi12 nancial technology that would serve the Com13 mission’s functions; 

14 ‘‘(D) analyze technological advancements 

15 and the impact of regulatory requirements on 

16 financial technology companies; 

17 ‘‘(E) advise the Commission with respect 

18 to rulemakings or other agency or staff action 

19 regarding financial technology; 

20 ‘‘(F) provide businesses working in emerg21 ing financial technology fields with information 

22 on the Commission, its rules and regulations; 

23 and 

24 ‘‘(G) encourage firms working in emerging 

25 technology fields to engage with the CommisVerDate Sep 11 2014 00:04 Sep 25, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H9633.IH H9633

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1 sion and obtain feedback from the Commission 

2 on potential regulatory issues. 

3 ‘‘(5) ACCESS TO DOCUMENTS.—The Commis4 sion shall ensure that FinHub has full access to the 

5 documents and information of the Commission and 

6 any self-regulatory organization, as necessary to 

7 carry out the functions of FinHub. 

8 ‘‘(6) REPORT TO CONGRESS.— 

9 ‘‘(A) IN GENERAL.—Not later than Octo10 ber 31 of each year after 2024, FinHub shall 

11 submit to the Committee on Banking, Housing, 

12 and Urban Affairs of the Senate and the Com13 mittee on Financial Services of the House of 

14 Representatives a report on the activities of 

15 FinHub during the immediately preceding fiscal 

16 year. 

17 ‘‘(B) CONTENTS.—Each report required 

18 under subparagraph (A) shall include— 

19 ‘‘(i) the total number of persons that 

20 met with FinHub; 

21 ‘‘(ii) the total number of market par22 ticipants FinHub met with, including the 

23 classification of those participants; 

24 ‘‘(iii) a summary of general issues dis25 cussed during meetings with persons; 


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1 ‘‘(iv) information on steps FinHub 

2 has taken to improve Commission services, 

3 including responsiveness to the concerns of 

4 persons; 

5 ‘‘(v) recommendations— 

6 ‘‘(I) with respect to the regula7 tions of the Commission and the guid8 ance and orders of the Commission; 

9 and 

10 ‘‘(II) for such legislative actions 

11 as FinHub determines appropriate; 

12 and 

13 ‘‘(vi) any other information, as deter14 mined appropriate by the Director of 

15 FinHub. 

16 ‘‘(C) CONFIDENTIALITY.—A report under 

17 subparagraph (A) may not contain confidential 

18 information. 

19 ‘‘(7) SYSTEMS OF RECORDS.— 

20 ‘‘(A) IN GENERAL.—The Commission shall 

21 establish a detailed system of records (as de22 fined under section 552a of title 5, United 

23 States Code) to assist FinHub in commu24 nicating with interested parties. 


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1 ‘‘(B) ENTITIES COVERED BY THE SYS2 TEM.—Entities covered by the system required 

3 under subparagraph (A) include entities or per4 sons submitting requests or inquiries and other 

5 information to Commission through FinHub. 

6 ‘‘(C) SECURITY AND STORAGE OF

7 RECORDS.—FinHub shall store— 

8 ‘‘(i) electronic records— 

9 ‘‘(I) in the system required under 

10 subparagraph (A); or 

11 ‘‘(II) on the secure network or 

12 other electronic medium, such as 

13 encrypted hard drives or back-up 

14 media, of the Commission; and 

15 ‘‘(ii) paper records in secure facilities. 

16 ‘‘(8) EFFECTIVE DATE.—This subsection shall 

17 take effect on the date that is 180 days after the 

18 date of the enactment of this subsection.’’. 

19 SEC. 3. CODIFICATION OF LABCFTC. 

20 (a) IN GENERAL.—Section 18 of the Commodity Ex21 change Act (7 U.S.C. 22) is amended by adding at the 

22 end the following: 

23 ‘‘(c) LABCFTC.— 

24 ‘‘(1) ESTABLISHMENT.—There is established in 

25 the Commission LabCFTC. 


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1 ‘‘(2) PURPOSE.—The purposes of LabCFTC 

2 are to— 

3 ‘‘(A) promote responsible financial tech4 nology innovation and fair competition for the 

5 benefit of the American public; 

6 ‘‘(B) serve as an information platform to 

7 inform the Commission about new financial 

8 technology innovation; and 

9 ‘‘(C) provide outreach to financial tech10 nology innovators to discuss their innovations 

11 and the regulatory framework established by 

12 this Act and the regulations promulgated there13 under. 

14 ‘‘(3) DIRECTOR.—LabCFTC shall have a Direc15 tor, who shall be appointed by the Commission and 

16 serve at the pleasure of the Commission. Notwith17 standing section 2(a)(6)(A), the Director shall re18 port directly to the Commission and perform such 

19 functions and duties as the Commission may pre20 scribe. 

21 ‘‘(4) DUTIES.—LabCFTC shall— 

22 ‘‘(A) advise the Commission with respect 

23 to rulemakings or other agency or staff action 

24 regarding financial technology; 


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1 ‘‘(B) provide internal education and train2 ing to the Commission regarding financial tech3 nology; 

4 ‘‘(C) advise the Commission regarding fi5 nancial technology that would bolster the Com6 mission’s oversight functions; 

7 ‘‘(D) engage with academia, students, and 

8 professionals on financial technology issues, 

9 ideas, and technology relevant to activities 

10 under this Act; 

11 ‘‘(E) provide persons working in emerging 

12 technology fields with information on the Com13 mission, its rules and regulations, and the role 

14 of a registered futures association; and 

15 ‘‘(F) encourage persons working in emerg16 ing technology fields to engage with the Com17 mission and obtain feedback from the Commis18 sion on potential regulatory issues. 

19 ‘‘(5) ACCESS TO DOCUMENTS.—The Commis20 sion shall ensure that LabCFTC has full access to 

21 the documents and information of the Commission 

22 and any self-regulatory organization or registered fu23 tures association, as necessary to carry out the func24 tions of LabCFTC. 

25 ‘‘(6) REPORT TO CONGRESS.— 


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1 ‘‘(A) IN GENERAL.—Not later than Octo2 ber 31 of each year after 2024, LabCFTC shall 

3 submit to the Committee on Agriculture of the 

4 House of Representatives and the Committee 

5 on Agriculture, Nutrition, and Forestry of the 

6 Senate a report on its activities. 

7 ‘‘(B) CONTENTS.—Each report required 

8 under paragraph (1) shall include— 

9 ‘‘(i) the total number of persons that 

10 met with LabCFTC; 

11 ‘‘(ii) a summary of general issues dis12 cussed during meetings with the person; 

13 ‘‘(iii) information on steps LabCFTC 

14 has taken to improve Commission services, 

15 including responsiveness to the concerns of 

16 persons; 

17 ‘‘(iv) recommendations made to the 

18 Commission with respect to the regula19 tions, guidance, and orders of the Commis20 sion and such legislative actions as may be 

21 appropriate; and 

22 ‘‘(v) any other information determined 

23 appropriate by the Director of LabCFTC. 


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1 ‘‘(C) CONFIDENTIALITY.—A report under 

2 paragraph (A) shall abide by the confidentiality 

3 requirements in section 8. 

4 ‘‘(7) SYSTEMS OF RECORDS.— 

5 ‘‘(A) IN GENERAL.—The Commission shall 

6 establish a detailed system of records (as de7 fined in section 552a of title 5, United States 

8 Code) to assist LabCFTC in communicating 

9 with interested parties. 

10 ‘‘(B) PERSONS COVERED BY THE SYS11 TEM.—The persons covered by the system of 

12 records shall include persons submitting re13 quests or inquiries and other information to the 

14 Commission through LabCFTC. 

15 ‘‘(C) SECURITY AND STORAGE OF

16 RECORDS.—The system of records shall store 

17 records electronically or on paper in secure fa18 cilities, and shall store electronic records on the 

19 secure network of the Commission and on other 

20 electronic media, such as encrypted hard drives 

21 and back-up media, as needed.’’. 

22 (b) CONFORMING AMENDMENTS.—Section 

23 2(a)(6)(A) of the Commodity Exchange Act (7 U.S.C. 

24 2(a)(6)(A)) is amended— 


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1 (1) by striking ‘‘paragraph and in’’ and insert2 ing ‘‘paragraph,’’; and 

3 (2) by inserting ‘‘and section 18(c)(3),’’ before 

4 ‘‘the executive’’. 

5 (c) EFFECTIVE DATE.—The Commodity Futures 

6 Trading Commission shall implement the amendments 

7 made by this section (including complying with section 

8 18(c)(7) of the Commodity Exchange Act) within 180 

9 days after the date of the enactment of this Act. 

Æ 


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