I 
116TH CONGRESS 
2D SESSION 
H. R. 7046 
To amend the Bank Holding Company Act of 1956 to place certain limitations 
on commodity ownership and to repeal the merchant banking authority, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 28, 2020 
Mr. CASTEN of Illinois introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Bank Holding Company Act of 1956 to place 
certain limitations on commodity ownership and to repeal 
the merchant banking authority, 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. LIMITATIONS ON COMMODITY OWNERSHIP 
AND REPEAL OF THE MERCHANT BANKING 
AUTHORITY. 
(a) IN GENERAL.—Section 4 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843) is amended— 
(1) in subsection (k)— 
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(A) in paragraph (1), by striking ‘‘(by reg-
ulation or order)’’ and inserting ‘‘, by regula-
tion’’; 
(B) in paragraph (2)— 
(i) in the heading, by striking ‘‘SEC-
RETARY OF THE TREASURY’’ and inserting 
‘‘SECRETARY OF THE TREASURY AND THE 
FEDERAL DEPOSIT INSURANCE CORPORA-
TION’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) JOINT
DETERMINATION
WITH
THE 
FEDERAL
DEPOSIT
INSURANCE
CORPORA-
TION.—For purposes of paragraph (1), the 
Board may only make a determination that an 
activity is complementary to a financial activity 
and does not pose a substantial risk to the safe-
ty or soundness of depository institutions or the 
financial system generally, if such determina-
tion is made jointly, by rule, with the Federal 
Deposit Insurance Corporation.’’; 
(C) in paragraph (4)— 
(i) by striking subparagraph (H); and 
(ii) by redesignating subparagraph (I) 
as subparagraph (H); and 
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(D) by striking paragraph (7); 
(2) in subsection (l)— 
(A) in paragraph (1), by striking ‘‘sub-
section (k), (n), or (o)’’ each place such term 
appears and inserting ‘‘subsection (k) or (n)’’; 
and 
(B) in paragraph (2)(B), by striking ‘‘sub-
paragraph (H) or (I)’’ and inserting ‘‘subpara-
graph (H)’’; 
(3) in subsection (m)(1)(A), by striking ‘‘sub-
section (k), (n), or (o)’’ and inserting ‘‘subsection 
(k) or (n)’’; 
(4) in subsection (n)(5), by striking ‘‘subpara-
graph (H) or (I)’’ each place such term appears and 
inserting ‘‘subparagraph (H)’’; and 
(5) by striking subsection (o). 
(b) 
CONFORMING
AMENDMENT.—Section 
3(a)(4)(B)(vi) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(4)(B)(vi)) is amended by striking ‘‘other 
than’’ and all that follows through the end and inserting 
‘‘other than a registered broker or dealer.’’. 
(c) RULEMAKING.—The Board of Governors of the 
Federal Reserve System shall— 
(1) issue rules to carry out the amendments 
made by this section; and 
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(2) provide for an appropriate transition period 
before persons are required to comply with the 
amendments made by this section, including allowing 
for the divestment of shares, assets, and ownership 
interests affected by such amendments. 
SEC. 2. FINALIZATION OF PROPOSED FINANCIAL HOLDING 
COMPANY RULE. 
(a) IN GENERAL.—The proposed financial holding 
company rule of the Board of Governors of the Federal 
Reserve System shall have the force and effect of law. 
(b) DEFINITION.—In this section, the term ‘‘pro-
posed financial holding company rule’’ means the proposed 
rule of the Board of Governors of the Federal Reserve Sys-
tem titled ‘‘Regulations Q and Y; Risk-Based Capital and 
Other Regulatory Requirements for Activities of Financial 
Holding Companies Related to Physical Commodities and 
Risk-Based Capital Requirements for Merchant Banking 
Investments’’ (81 Fed. Reg. 67220; published September 
30, 2016). 
Æ 
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