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.

Bill: 116-hr-8989
Sponsor: full_name: Rep. Lynch, Stephen F. [D-MA-8]
Introduced: 2020-12-16
Policy area: Finance and Financial Sector
Subjects: Accounting and auditing

Advanced technology and technological innovations

Banking and financial institutions regulation

Computers and information technology

Congressional oversight

Government information and archives

Government studies and investigations
Latest action: action_date: 2020-12-16
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-12-16
action_desc: Introduced in House
text: <p>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.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 8989 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.

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.