I 

118TH CONGRESS 

2D SESSION H. R. 7954 

To amend the Financial Stability Act of 2010 to establish an Advisory 

Committee on Economic Fallout From Chinese Military Aggression Towards Taiwan, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 11, 2024 

Mr. LUETKEMEYER (for himself and Mr. TORRES of New York) introduced 

the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Financial Stability Act of 2010 to establish 

an Advisory Committee on Economic Fallout From Chinese Military Aggression Towards Taiwan, 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 ‘‘Fortifying U.S. Mar5 kets From Chinese Military Aggression Act’’. 


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1 SEC. 2. ADVISORY COMMITTEE ON ECONOMIC FALLOUT 

2 FROM CHINESE MILITARY AGGRESSION TO3 WARDS TAIWAN. 

4 Section 111 of the Financial Stability Act of 2010 

5 (12 U.S.C. 5321) is amended by adding at the end the 

6 following: 

7 ‘‘(k) ADVISORY COMMITTEE.— 

8 ‘‘(1) ESTABLISHMENT.—There is established 

9 the Financial Stability Oversight Council Advisory 

10 Committee on Economic Fallout From Chinese Mili11 tary Aggression Towards Taiwan (the ‘Advisory 

12 Committee’) to— 

13 ‘‘(A) study and report on the market impli14 cations and vulnerabilities related to Chinese 

15 military aggression toward Taiwan; and 

16 ‘‘(B) open lines of communication between 

17 policy makers, government agencies, and capital 

18 market constituents to prepare for a potential 

19 response to, and to mitigate economic strain 

20 and market volatility related to, Chinese aggres21 sion in Taiwan. 

22 ‘‘(2) MEMBERS.— 

23 ‘‘(A) IN GENERAL.—The Advisory Com24 mittee shall consist of— 

25 ‘‘(i) a designee of the Commission; 


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1 ‘‘(ii) a designee of the Commodity Fu2 tures Trading Commission; and 

3 ‘‘(iii) 10 members to be appointed by 

4 the Council from among persons who are— 

5 ‘‘(I) capital markets participants, 

6 including market makers, asset man7 agers, exchanges, and institutional in8 vestors; or 

9 ‘‘(II) experts on geopolitical risk 

10 related to China. 

11 ‘‘(B) CHAIR.—The Chair of the Advisory 

12 Committee shall be a market maker appointed 

13 under subparagraph (A)(iii). 

14 ‘‘(3) MEETINGS.—The Advisory Committee 

15 shall meet in person at least 2 times per year, with 

16 additional meetings at the call of the Chair. 

17 ‘‘(4) ANNUAL STUDY AND REPORT ON THE

18 RECOMMENDATIONS OF THE ADVISORY COM19 MITTEE.—The Advisory Committee shall, annually— 

20 ‘‘(A) carry out a study on the market im21 plications and vulnerabilities related to Chinese 

22 military aggression toward Taiwan; 

23 ‘‘(B) develop recommendations and sup24 porting analysis based on the results of the 

25 study; and 


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1 ‘‘(C) hold a public meeting to present the 

2 recommendations and analysis to the Council, 

3 but with any portions of such recommendations 

4 and analysis that implicate national security 

5 concerns presented in a closed session. 

6 ‘‘(5) PERMANENT STATUS.—The termination 

7 provision under section 1013 of title 5, United 

8 States Code, shall not apply to the Advisory Com9 mittee. 

10 ‘‘(l) ANNUAL REPORT.—The Council shall issue an 

11 annual public report, after analyzing the recommendations 

12 and analysis of the Advisory Committee provided under 

13 subsection (k)(4), detailing the following: 

14 ‘‘(1) Market vulnerabilities related to Chinese 

15 aggression in Taiwan, including— 

16 ‘‘(A) the safety and soundness of the 

17 United States banking and financial systems; 

18 ‘‘(B) market impact and potential losses 

19 faced by United States and global markets; 

20 ‘‘(C) the capacity of United States markets 

21 to deal with extreme volatility that could result 

22 from aggression, i.e. trading halts, circuit 

23 breakers, and other tools for managing liquid24 ity; 


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1 ‘‘(D) the impact on Chinese and Taiwanese 

2 listings in the United States; 

3 ‘‘(E) the likelihood, and potential impact 

4 of, China reducing, or eliminating, its holding 

5 in United States Treasuries; and 

6 ‘‘(F) the estimated total costs to the 

7 United States economy from Chinese military 

8 aggression toward Taiwan. 

9 ‘‘(2) Recommendations and action items for 

10 regulators to make United States capital markets 

11 more resilient against market shocks, volatility, and 

12 dislocation described under paragraph (1), including 

13 with respect to— 

14 ‘‘(A) the United States Government’s co15 ordination and response; 

16 ‘‘(B) ideas for government action to limit 

17 the market impacts of a blockade or invasion of 

18 Taiwan; 

19 ‘‘(C) potential retaliatory actions by China 

20 and the potential response of the United States; 

21 ‘‘(D) collaboration and testing of trade 

22 halt rules and circuit breakers across markets; 

23 and 


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1 ‘‘(E) avenues for further regulator engage2 ment with capital markets participants on the 

3 topic.’’. 

Æ 


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