Title: To require the Securities and Exchange Commission to conduct a study on the feasibility, benefits, and costs of using a distributed ledger system in the post-trade clearing and settlement process, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill requires the Securities and Exchange Commission to report on the feasibility, benefits, and costs of using a distributed ledger system (such as blockchain technology) in the clearing and settlement process after a securities trade is complete.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8989 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8989

To require the Securities and Exchange Commission to conduct a study on 
  the feasibility, benefits, and costs of using a distributed ledger 
system in the post-trade clearing and settlement process, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2020

 Mr. Lynch (for himself and Mr. Emmer) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To require the Securities and Exchange Commission to conduct a study on 
  the feasibility, benefits, and costs of using a distributed ledger 
system in the post-trade clearing and settlement process, 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. STUDY ON THE USE OF A DISTRIBUTED LEDGER SYSTEM.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Securities and Exchange Commission shall 
conduct a study on the feasibility, benefits, and costs of using a 
distributed ledger system in the post-trade clearing and settlement 
process.
    (b) Consultation.--In conducting the study under subsection (a), 
the Commission staff shall consult with domestic and international 
stakeholders.
    (c) Contents of the Study.--The study required under subsection (a) 
shall include--
            (1) an identification of the key operational and regulatory 
        challenges and opportunities that could be caused by the use of 
        a distributed ledger system in the post-trade clearing and 
        settlement process;
            (2) an identification of practices from domestic and 
        international models that use a distributed ledger system in 
        the clearing and settlement process;
            (3) an identification of the processes and entities that 
        could be disintermediated by the use of such system in such 
        processes;
            (4) an identification of the potential steps for 
        establishing international standards for, and global continuity 
        of service in the transition to, the use of such system in such 
        processes;
            (5) an identification of the implications of the use of 
        such system in such processes on--
                    (A) investor protection, capital formation, and 
                market efficiency; and
                    (B) the establishment of international standards; 
                and
            (6) an assessment of whether the Commission should 
        implement a pilot program to use such system in such processes.
    (d) Report Required.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Commission shall submit to 
        Congress a report on the findings and determinations of the 
        study required under subsection (a).
            (2) Update.--Not later than 1 year after the date on which 
        the report under paragraph (1) is submitted, the Commission 
        shall submit to Congress a report that updates the findings and 
        determinations of the report submitted under such paragraph.
            (3) Content.--In submitting the reports required under 
        paragraphs (1) and (2), the Commission may not include 
        confidential information.
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