I 

116TH CONGRESS 

1ST SESSION H. R. 4535 

To modernize the authority of the Commodity Futures Trading Commission 

to conduct research, development, demonstration, and information programs. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 26, 2019 

Mr. AUSTIN SCOTT of Georgia (for himself, Mr. MARSHALL, Mr. JOHNSON

of South Dakota, Mr. CRAWFORD, and Mr. BOST) introduced the following bill; which was referred to the Committee on Agriculture 

A BILL 

To modernize the authority of the Commodity Futures Trading Commission to conduct research, development, demonstration, and information programs. 

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 ‘‘Commodity Futures 

5 Trading Commission Research and Development Mod6 ernization Act’’. 


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1 SEC. 2. MODERNIZATION OF AUTHORITY OF THE COM2 MODITY FUTURES TRADING COMMISSION TO 

3 CONDUCT RESEARCH, DEVELOPMENT, DEM4 ONSTRATION, AND INFORMATION PRO5 GRAMS. 

6 Section 18 of the Commodity Exchange Act (7 U.S.C. 

7 22) is amended to read as follows: 

8 ‘‘SEC. 18. RESEARCH, DEVELOPMENT, AND DEMONSTRA9 TION OF FINANCIAL TECHNOLOGY. 

10 ‘‘(a) AUTHORITY.—The Commission shall establish 

11 and maintain, as part of its ongoing operations, research, 

12 development, demonstration, and information programs 

13 that further the purposes and objectives of this Act, in14 cluding programs that— 

15 ‘‘(1) facilitate the understanding by the Com16 mission of emerging financial, regulatory, and com17 pliance technologies, the potential applications of the 

18 technologies to the transactions and markets regu19 lated by the Commission, and associated implications 

20 for cybersecurity, data security, and systemic risk; 

21 ‘‘(2) inform the Commission of important tech22 nological advances and innovations affecting markets 

23 regulated by the Commission; 

24 ‘‘(3) provide an environment where techno25 logical advances and innovations may be explored by 

26 developers, potential users, and the Commission to 


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1 evaluate potential benefits to the Commission and 

2 the markets regulated by the Commission; 

3 ‘‘(4) identify areas where the Commission 

4 should adapt its administration of this Act to facili5 tate technological advances and innovations that 

6 would benefit the markets regulated by the Commis7 sion; 

8 ‘‘(5) improve the administration of this Act by 

9 the Commission by identifying technological ad10 vances and innovations, and developing novel tools 

11 that are not generally available from traditional ven12 dors for use by the Commission, or any division or 

13 office of the Commission; and 

14 ‘‘(6) develop educational and other informa15 tional materials regarding derivatives trading, tech16 nological advances and innovations in markets regu17 lated by the Commission, and applicable require18 ments of this Act and the regulations prescribed 

19 under this Act. 

20 ‘‘(b) AUTHORIZED MEANS.—Notwithstanding any 

21 other provision of law, the Commission may use the fol22 lowing authorities for the purpose of aiding or facilitating 

23 the programs and activities under subsection (a): 

24 ‘‘(1) OTHER TRANSACTION AUTHORITY.— 


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1 ‘‘(A) IN GENERAL.—The Commission may 

2 enter into and perform a transaction (other 

3 than a standard contract) on such terms and 

4 conditions as the Chairman of the Commission 

5 deems appropriate. 

6 ‘‘(B) DETERMINATION.—The Commission 

7 may only enter into a transaction under this 

8 paragraph if the Chairman makes a written de9 termination that— 

10 ‘‘(i) the transaction is only used in 

11 furtherance of a research and development 

12 plan established under subsection (c)(1); 

13 ‘‘(ii) the transaction is executed in 

14 compliance with the guidance promulgated 

15 under subsection (c)(2); 

16 ‘‘(iii) the Commission endeavored to 

17 use a competitive process, where appro18 priate, when determining the parties to the 

19 transaction; and 

20 ‘‘(iv) using a standard contract to do 

21 so is either not feasible or not appropriate. 

22 ‘‘(2) GIFT ACCEPTANCE AUTHORITY.— 

23 ‘‘(A) IN GENERAL.—Subject to this para24 graph, the Commission may accept and use, on 

25 behalf of the United States, any non-monetary 


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1 gift, including any provision of access, use of 

2 facilities, tangible or intangible personal prop3 erty, or services, that is related to— 

4 ‘‘(i) sharing of research, data, or 

5 other information; 

6 ‘‘(ii) public presentations; or 

7 ‘‘(iii) non-commercially available serv8 ices or systems. 

9 ‘‘(B) DETERMINATION.—The Commission 

10 may accept a gift only if the Chairman makes 

11 a written determination that— 

12 ‘‘(i) the acceptance and use of the gift 

13 meets the requirements of this paragraph; 

14 ‘‘(ii) the gift will be used only in fur15 therance of a research and development 

16 plan established under subsection (c)(1); 

17 ‘‘(iii) the gift is accepted in compli18 ance with the guidance promulgated under 

19 subsection (c)(2); and 

20 ‘‘(iv) using a standard contract or 

21 other transaction to acquire the gift is ei22 ther not feasible or not appropriate. 

23 ‘‘(C) LIMITATIONS.—The Commission may 

24 not accept a gift if— 


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1 ‘‘(i) conditions inconsistent with appli2 cable laws or regulations apply to the gift; 

3 or 

4 ‘‘(ii) the gift is conditioned on, or will 

5 require, the expenditure of appropriated 

6 funds not available to the Commission. 

7 ‘‘(D) SUNSET.—The authority provided by 

8 subparagraph (A) may not be exercised on or 

9 after October 1, 2024. 

10 ‘‘(c) RESEARCH AND DEVELOPMENT PLAN; GUID11 ANCE.—Before using the means authorized in subsection 

12 (b), the Commission shall— 

13 ‘‘(1) approve a research and development plan 

14 that furthers the goals of this section, by estab15 lishing— 

16 ‘‘(A) the potential areas of interest to the 

17 Commission; 

18 ‘‘(B) the potential activities the Commis19 sion may undertake to investigate the potential 

20 areas of interest; and 

21 ‘‘(C) a general explanation of how the 

22 means will assist the Commission in under23 standing the potential areas of interest; and 

24 ‘‘(2) promulgate guidance on the appropriate 

25 use of the means in order to— 


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1 ‘‘(A) prohibit the Commission or Commis2 sion staff from accepting or soliciting gifts, or 

3 engaging in other transactions, which would un4 duly restrict or interfere with the work of the 

5 Commission; 

6 ‘‘(B) prevent the endorsement or the ap7 pearance of the endorsement by the Commis8 sion or Commission staff of the products, serv9 ices, activities, or policies of a donor or con10 tractor; and 

11 ‘‘(C) preserve the integrity and independ12 ence of the Commission and Commission staff. 

13 ‘‘(d) ANNUAL REPORT.—Not later than 60 days after 

14 the end of each fiscal year, the Commission shall submit 

15 to the Committee on Agriculture, Nutrition, and Forestry 

16 of the Senate and the Committee on Agriculture of the 

17 House of Representatives a report on all transactions en18 tered into, and all gifts accepted, under subsection (b) in 

19 the fiscal year, which shall include the following: 

20 ‘‘(1) A brief description of the subject of each 

21 transaction or gift, with an explanation of— 

22 ‘‘(A) its potential utility to the Commission 

23 or the markets regulated by the Commission; 


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1 ‘‘(B) how it fulfills the goals and objectives 

2 of the research and development plan estab3 lished under subsection (c)(1); and 

4 ‘‘(C) the status of all related projects. 

5 ‘‘(2) The written determination required by 

6 subsection (b) with respect to each such transaction 

7 or gift. 

8 ‘‘(3) A description of all sums expended by the 

9 Commission in connection with a transaction entered 

10 into under subsection (b)(1), and, if readily ascer11 tainable, the value of any gift accepted under sub12 section (b)(2).’’. 

Æ 


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