IB 
Union Calendar No. 615 
118TH CONGRESS 
2D SESSION 
H. R. 7437 
[Report No. 118–728] 
To require certain supervisory agencies to assess their technological 
vulnerabilities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 23, 2024 
Mrs. HOUCHIN (for herself, Mr. FOSTER, and Mr. HILL) introduced the 
following bill; which was referred to the Committee on Financial Services 
NOVEMBER 1, 2024 
Additional sponsor: Ms. PETTERSEN 
NOVEMBER 1, 2024 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on February 23, 2024] 
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A BILL 
To require certain supervisory agencies to assess their 
technological vulnerabilities, and for other purposes. 
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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 ‘‘Fostering the Use of 
Technology to Uphold Regulatory Effectiveness in Super-
vision Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Banking regulators continue to examine and 
monitor depository institutions without access to real- 
time information. 
(2) Risk surrounding technology procurement 
may present challenges for updating supervisory tech-
nology. 
(3) To ensure that prudential supervision is ef-
fective and sustainable in the digital age, agencies 
must leverage new technologies to allow for the finan-
cial monitoring necessary to preserve a safe and 
sound banking system. 
(4) New technological tools are also necessary in 
order for agencies to effectively fulfill mandates other 
than prudential supervision, including their man-
dates to assure consumer protection and monitor 
Bank Secrecy Act compliance. 
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(5) Agencies’ reliance on outdated technology cre-
ates vulnerabilities for the financial system, caus-
ing— 
(A) difficulties in collecting, compiling, and 
analyzing relevant information about risks and 
noncompliance at supervised firms; 
(B) reliance on information that is inac-
curate, incomplete, or not timely; 
(C) reliance on limited and outdated tools 
for data analysis; 
(D) difficulties in using data to identify 
risk trends; 
(E) difficulties in producing accurate and 
timely reports; 
(F) inadequacy of cybersecurity safeguards; 
and 
(G) failure to detect illegal activities. 
(6) The rapid expansion of financial firms’ use 
of artificial intelligence may generate opportunities to 
improve the financial system while also introducing 
a range of risks, making it essential that agencies be 
equipped with the technology and skills needed to 
analyze these opportunities and potential risks. 
(7) While agencies assess their supervisory capa-
bilities on an ongoing basis, it is imperative that 
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there be a unified goal to enhancing supervisory tech-
nologies that ensures effective and sustainable over-
sight in the digital age. 
SEC. 3. TECHNOLOGICAL VULNERABILITIES AND PROCURE-
MENT PRACTICES ASSESSMENT. 
(a) IN GENERAL.— 
(1) TECHNOLOGICAL VULNERABILITIES ASSESS-
MENT.—Each covered agency shall, not later than 180 
days after the date of the enactment of this section, 
assess how existing technological systems used by the 
covered agency prevent the covered agency from con-
ducting real-time supervisory assessments of entities 
over which the covered agency has supervisory author-
ity, including effects stemming from— 
(A) core information technology infrastruc-
ture; 
(B) technology used to supervise entities, in-
cluding supervisory technological tools; and 
(C) technology for monitoring general mar-
ket risks using reported data and external data. 
(2) PROCUREMENT
PRACTICES
ASSESSMENT.— 
Each covered agency shall, not later than 180 days 
after the date of the enactment of this section— 
(A) assess the procurement rules and proto-
cols adhered to by such covered agency when such 
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