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. NICK-
EL) 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 liabil-
ity, 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 ‘‘Uniform Treatment 
of Custodial Assets Act’’. 
SEC. 2. ACCOUNTING TREATMENT OF CUSTODY ACTIVI-
TIES. 
(a) IN GENERAL.—The appropriate Federal banking 
agency, the National Credit Union Administration (in the 
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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 in-
clude assets held in custody or safekeeping, or the 
assets associated with a cryptographic key held in 
custody or safekeeping, as a liability on such institu-
tion’s financial statement or balance sheet; 
(2) to hold additional regulatory capital against 
assets in custody, or safekeeping, or the assets asso-
ciated with a cryptographic key held in custody or 
safekeeping, except as necessary to mitigate against 
operational risks under regulations with general ap-
plication, as determined by— 
(A) the appropriate Federal banking agen-
cy or State bank supervisor; 
(B) the National Credit Union Administra-
tion (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 ex-
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pense 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 ‘‘Fed-
eral 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 
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official described in section 107A(e) of the Federal 
Credit Union Act (12 U.S.C. 1757a(e)). 
Æ 
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