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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5741 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Uniform Treatment of Custodial 
Assets Act''.

SEC. 2. ACCOUNTING TREATMENT OF CUSTODY ACTIVITIES.

    (a) In General.--The appropriate Federal banking agency, the 
National Credit Union Administration (in the case of a credit union), 
and the Securities and Exchange Commission may not require or take 
supervisory action that would cause a depository institution, national 
bank, Federal credit union, State credit union, trust company, or any 
affiliate thereof--
            (1) except as provided in subsection (b), to include assets 
        held in custody or safekeeping, or the assets associated with a 
        cryptographic key held in custody or safekeeping, as a 
        liability on such institution's financial statement or balance 
        sheet;
            (2) to hold additional regulatory capital against assets in 
        custody, or safekeeping, or the assets associated with a 
        cryptographic key held in custody or safekeeping, except as 
        necessary to mitigate against operational risks under 
        regulations with general application, as determined by--
                    (A) the appropriate Federal banking agency or State 
                bank supervisor;
                    (B) the National Credit Union Administration (in 
                the case of a credit union); or
                    (C) a State credit union supervisor; or
            (3) to recognize a liability for any obligations related to 
        activities or services performed for digital assets that such 
        institution does not have beneficial ownership of if that 
        liability would exceed the expense recognized in the income 
        statement as a result of the corresponding obligation.
    (b) Exception for Commingling.--Cash held for a third party by an 
institution described in subsection (a) may be treated as a liability 
on such institution's financial statement or balance sheet if such cash 
is commingled with the general assets of such institution.
    (c) Definitions.--In this section:
            (1) Affiliate.--The term ``affiliate'' has the meaning 
        given the term in section 2 of the Bank Holding Company Act of 
        1956 (12 U.S.C. 1841).
            (2) Credit union terms.--The terms ``Federal credit union'' 
        and ``State credit union'' have the meaning given those terms, 
        respectively, in section 101 of the Federal Credit Union Act 
        (12 U.S.C. 1752).
            (3) FDIA terms.--The terms ``appropriate Federal banking 
        agency'', ``depository institution'', and ``State bank 
        supervisor'' have the meanings given the terms, respectively, 
        in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813).
            (4) State credit union supervisor.--The term ``State credit 
        union supervisor'' means a State official described in section 
        107A(e) of the Federal Credit Union Act (12 U.S.C. 1757a(e)).
                                 <all>
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