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 To-
wards 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 Chi-
nese Military Aggression Towards Taiwan, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fortifying U.S. Mar-
kets From Chinese Military Aggression Act’’. 
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SEC. 2. ADVISORY COMMITTEE ON ECONOMIC FALLOUT 
FROM CHINESE MILITARY AGGRESSION TO-
WARDS TAIWAN. 
Section 111 of the Financial Stability Act of 2010 
(12 U.S.C. 5321) is amended by adding at the end the 
following: 
‘‘(k) ADVISORY COMMITTEE.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Financial Stability Oversight Council Advisory 
Committee on Economic Fallout From Chinese Mili-
tary Aggression Towards Taiwan (the ‘Advisory 
Committee’) to— 
‘‘(A) study and report on the market impli-
cations and vulnerabilities related to Chinese 
military aggression toward Taiwan; and 
‘‘(B) open lines of communication between 
policy makers, government agencies, and capital 
market constituents to prepare for a potential 
response to, and to mitigate economic strain 
and market volatility related to, Chinese aggres-
sion in Taiwan. 
‘‘(2) MEMBERS.— 
‘‘(A) IN
GENERAL.—The Advisory Com-
mittee shall consist of— 
‘‘(i) a designee of the Commission; 
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‘‘(ii) a designee of the Commodity Fu-
tures Trading Commission; and 
‘‘(iii) 10 members to be appointed by 
the Council from among persons who are— 
‘‘(I) capital markets participants, 
including market makers, asset man-
agers, exchanges, and institutional in-
vestors; or 
‘‘(II) experts on geopolitical risk 
related to China. 
‘‘(B) CHAIR.—The Chair of the Advisory 
Committee shall be a market maker appointed 
under subparagraph (A)(iii). 
‘‘(3) MEETINGS.—The Advisory Committee 
shall meet in person at least 2 times per year, with 
additional meetings at the call of the Chair. 
‘‘(4) ANNUAL
STUDY
AND
REPORT
ON
THE 
RECOMMENDATIONS
OF
THE
ADVISORY
COM-
MITTEE.—The Advisory Committee shall, annually— 
‘‘(A) carry out a study on the market im-
plications and vulnerabilities related to Chinese 
military aggression toward Taiwan; 
‘‘(B) develop recommendations and sup-
porting analysis based on the results of the 
study; and 
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‘‘(C) hold a public meeting to present the 
recommendations and analysis to the Council, 
but with any portions of such recommendations 
and analysis that implicate national security 
concerns presented in a closed session. 
‘‘(5) PERMANENT
STATUS.—The termination 
provision under section 1013 of title 5, United 
States Code, shall not apply to the Advisory Com-
mittee. 
‘‘(l) ANNUAL REPORT.—The Council shall issue an 
annual public report, after analyzing the recommendations 
and analysis of the Advisory Committee provided under 
subsection (k)(4), detailing the following: 
‘‘(1) Market vulnerabilities related to Chinese 
aggression in Taiwan, including— 
‘‘(A) the safety and soundness of the 
United States banking and financial systems; 
‘‘(B) market impact and potential losses 
faced by United States and global markets; 
‘‘(C) the capacity of United States markets 
to deal with extreme volatility that could result 
from aggression, i.e. trading halts, circuit 
breakers, and other tools for managing liquid-
ity; 
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‘‘(D) the impact on Chinese and Taiwanese 
listings in the United States; 
‘‘(E) the likelihood, and potential impact 
of, China reducing, or eliminating, its holding 
in United States Treasuries; and 
‘‘(F) the estimated total costs to the 
United States economy from Chinese military 
aggression toward Taiwan. 
‘‘(2) Recommendations and action items for 
regulators to make United States capital markets 
more resilient against market shocks, volatility, and 
dislocation described under paragraph (1), including 
with respect to— 
‘‘(A) the United States Government’s co-
ordination and response; 
‘‘(B) ideas for government action to limit 
the market impacts of a blockade or invasion of 
Taiwan; 
‘‘(C) potential retaliatory actions by China 
and the potential response of the United States; 
‘‘(D) collaboration and testing of trade 
halt rules and circuit breakers across markets; 
and 
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‘‘(E) avenues for further regulator engage-
ment with capital markets participants on the 
topic.’’. 
Æ 
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