I 

118TH CONGRESS 

1ST SESSION H. R. 5741 

To prohibit certain Federal agencies from requiring certain institutions to 

include assets held in custody as a liability, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 27, 2023 

Mr. FLOOD (for himself, Mr. TORRES of New York, Mr. HILL, and Mr. NICKEL) introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To prohibit certain Federal agencies from requiring certain 

institutions to include assets held in custody as a liability, 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 ‘‘Uniform Treatment 

5 of Custodial Assets Act’’. 

6 SEC. 2. ACCOUNTING TREATMENT OF CUSTODY ACTIVI7 TIES. 

8 (a) IN GENERAL.—The appropriate Federal banking 

9 agency, the National Credit Union Administration (in the 


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1 case of a credit union), and the Securities and Exchange 

2 Commission may not require or take supervisory action 

3 that would cause a depository institution, national bank, 

4 Federal credit union, State credit union, trust company, 

5 or any affiliate thereof— 

6 (1) except as provided in subsection (b), to in7 clude assets held in custody or safekeeping, or the 

8 assets associated with a cryptographic key held in 

9 custody or safekeeping, as a liability on such institu10 tion’s financial statement or balance sheet; 

11 (2) to hold additional regulatory capital against 

12 assets in custody, or safekeeping, or the assets asso13 ciated with a cryptographic key held in custody or 

14 safekeeping, except as necessary to mitigate against 

15 operational risks under regulations with general ap16 plication, as determined by— 

17 (A) the appropriate Federal banking agen18 cy or State bank supervisor; 

19 (B) the National Credit Union Administra20 tion (in the case of a credit union); or 

21 (C) a State credit union supervisor; or 

22 (3) to recognize a liability for any obligations 

23 related to activities or services performed for digital 

24 assets that such institution does not have beneficial 

25 ownership of if that liability would exceed the exVerDate Sep 11 2014 03:56 Sep 30, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5741.IH H5741

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1 pense recognized in the income statement as a result 

2 of the corresponding obligation. 

3 (b) EXCEPTION FOR COMMINGLING.—Cash held for 

4 a third party by an institution described in subsection (a) 

5 may be treated as a liability on such institution’s financial 

6 statement or balance sheet if such cash is commingled 

7 with the general assets of such institution. 

8 (c) DEFINITIONS.—In this section: 

9 (1) AFFILIATE.—The term ‘‘affiliate’’ has the 

10 meaning given the term in section 2 of the Bank 

11 Holding Company Act of 1956 (12 U.S.C. 1841). 

12 (2) CREDIT UNION TERMS.—The terms ‘‘Fed13 eral credit union’’ and ‘‘State credit union’’ have the 

14 meaning given those terms, respectively, in section 

15 101 of the Federal Credit Union Act (12 U.S.C. 

16 1752). 

17 (3) FDIA TERMS.—The terms ‘‘appropriate 

18 Federal banking agency’’, ‘‘depository institution’’, 

19 and ‘‘State bank supervisor’’ have the meanings 

20 given the terms, respectively, in section 3 of the 

21 Federal Deposit Insurance Act (12 U.S.C. 1813). 

22 (4) STATE CREDIT UNION SUPERVISOR.—The 

23 term ‘‘State credit union supervisor’’ means a State 


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1 official described in section 107A(e) of the Federal 

2 Credit Union Act (12 U.S.C. 1757a(e)). 

Æ 


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