I 

116TH CONGRESS 

2D SESSION H. R. 8989 

To require the Securities and Exchange Commission to conduct a study 

on the feasibility, benefits, and costs of using a distributed ledger system 

in the post-trade clearing and settlement process, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2020 

Mr. LYNCH (for himself and Mr. EMMER) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To require the Securities and Exchange Commission to conduct a study on the feasibility, benefits, and costs of 

using a distributed ledger system in the post-trade clearing and settlement process, 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. STUDY ON THE USE OF A DISTRIBUTED LEDG4 ER SYSTEM. 

5 (a) IN GENERAL.—Not later than 1 year after the 

6 date of the enactment of this Act, the Securities and Ex7 change Commission shall conduct a study on the feasiVerDate Sep 11 2014 16:30 Dec 31, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8989.IH H8989

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1 bility, benefits, and costs of using a distributed ledger sys2 tem in the post-trade clearing and settlement process. 

3 (b) CONSULTATION.—In conducting the study under 

4 subsection (a), the Commission staff shall consult with do5 mestic and international stakeholders. 

6 (c) CONTENTS OF THE STUDY.—The study required 

7 under subsection (a) shall include— 

8 (1) an identification of the key operational and 

9 regulatory challenges and opportunities that could be 

10 caused by the use of a distributed ledger system in 

11 the post-trade clearing and settlement process; 

12 (2) an identification of practices from domestic 

13 and international models that use a distributed ledg14 er system in the clearing and settlement process; 

15 (3) an identification of the processes and enti16 ties that could be disintermediated by the use of 

17 such system in such processes; 

18 (4) an identification of the potential steps for 

19 establishing international standards for, and global 

20 continuity of service in the transition to, the use of 

21 such system in such processes; 

22 (5) an identification of the implications of the 

23 use of such system in such processes on— 

24 (A) investor protection, capital formation, 

25 and market efficiency; and 


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1 (B) the establishment of international 

2 standards; and 

3 (6) an assessment of whether the Commission 

4 should implement a pilot program to use such sys5 tem in such processes. 

6 (d) REPORT REQUIRED.— 

7 (1) IN GENERAL.—Not later than 1 year after 

8 the date of the enactment of this Act, the Commis9 sion shall submit to Congress a report on the find10 ings and determinations of the study required under 

11 subsection (a). 

12 (2) UPDATE.—Not later than 1 year after the 

13 date on which the report under paragraph (1) is 

14 submitted, the Commission shall submit to Congress 

15 a report that updates the findings and determina16 tions of the report submitted under such paragraph. 

17 (3) CONTENT.—In submitting the reports re18 quired under paragraphs (1) and (2), the Commis19 sion may not include confidential information. 

Æ 


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