Securing Innovation in Financial Regulation Act

Bill: 118-hr-9633
Sponsor: full_name: Rep. Lucas, Frank D. [R-OK-3]
Introduced: 2024-09-17
Policy area: Finance and Financial Sector
Latest action: action_date: 2024-10-08
text: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 9633 IN THE HOUSE OF REPRESENTATIVES September 17, 2024 Mr. Lucas introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committee on Agriculture , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To codify the Strategic Hub for Innovation and Financial Technology of the Securities and Exchange Commission and LabCFTC of the Commodity Futures Trading Commission, and for other purposes.

1. Short title This Act may be cited as the Securing Innovation in Financial Regulation Act . 2. Codification of the SEC Strategic Hub for Innovation and Financial Technology Section 4 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78d ) is amended by adding at the end the following: (l) Strategic Hub for Innovation and Financial Technology (1) Office established There is established within the Commission the Strategic Hub for Innovation and Financial Technology (referred to in this section as the FinHub ). (2) Purposes The purposes of FinHub are as follows: (A) To assist in shaping the approach of the Commission to technological advancements. (B) To examine financial technology innovations among market participants. (C) To coordinate the response of the Commission to emerging technologies in financial, regulatory, and supervisory systems. (3) Director of FinHub FinHub shall have a Director who shall be appointed by the Commission, from among individuals having experience in both emerging technologies and Federal securities laws and serve at the pleasure of the Commission. The Director shall report directly to the Commission and perform such functions and duties as the Commission may prescribe. (4) Responsibilities FinHub shall— (A) foster responsible technological innovation and fair competition within the Commission, including around financial technology, regulatory technology, and supervisory technology; (B) provide internal education and training to the Commission regarding financial technology; (C) advise the Commission regarding financial technology that would serve the Commission’s functions; (D) analyze technological advancements and the impact of regulatory requirements on financial technology companies; (E) advise the Commission with respect to rulemakings or other agency or staff action regarding financial technology; (F) provide businesses working in emerging financial technology fields with information on the Commission, its rules and regulations; and (G) encourage firms working in emerging technology fields to engage with the Commission and obtain feedback from the Commission on potential regulatory issues. (5) Access to documents The Commission shall ensure that FinHub has full access to the documents and information of the Commission and any self-regulatory organization, as necessary to carry out the functions of FinHub. (6) Report to Congress (A) In general Not later than October 31 of each year after 2024, FinHub shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the activities of FinHub during the immediately preceding fiscal year. (B) Contents Each report required under subparagraph (A) shall include— (i) the total number of persons that met with FinHub; (ii) the total number of market participants FinHub met with, including the classification of those participants; (iii) a summary of general issues discussed during meetings with persons; (iv) information on steps FinHub has taken to improve Commission services, including responsiveness to the concerns of persons; (v) recommendations— (I) with respect to the regulations of the Commission and the guidance and orders of the Commission; and (II) for such legislative actions as FinHub determines appropriate; and (vi) any other information, as determined appropriate by the Director of FinHub. (C) Confidentiality A report under subparagraph (A) may not contain confidential information. (7) Systems of records (A) In general The Commission shall establish a detailed system of records (as defined under section 552a of title 5, United States Code) to assist FinHub in communicating with interested parties. (B) Entities covered by the system Entities covered by the system required under subparagraph (A) include entities or persons submitting requests or inquiries and other information to Commission through FinHub. (C) Security and storage of records FinHub shall store— (i) electronic records— (I) in the system required under subparagraph (A); or (II) on the secure network or other electronic medium, such as encrypted hard drives or back-up media, of the Commission; and (ii) paper records in secure facilities. (8) Effective date This subsection shall take effect on the date that is 180 days after the date of the enactment of this subsection. . 3. Codification of LabCFTC (a) In general Section 18 of the Commodity Exchange Act ( 7 U.S.C. 22 ) is amended by adding at the end the following: (c) LabCFTC (1) Establishment There is established in the Commission LabCFTC. (2) Purpose The purposes of LabCFTC are to— (A) promote responsible financial technology innovation and fair competition for the benefit of the American public; (B) serve as an information platform to inform the Commission about new financial technology innovation; and (C) provide outreach to financial technology innovators to discuss their innovations and the regulatory framework established by this Act and the regulations promulgated thereunder. (3) Director LabCFTC shall have a Director, who shall be appointed by the Commission and serve at the pleasure of the Commission. Notwithstanding section 2(a)(6)(A), the Director shall report directly to the Commission and perform such functions and duties as the Commission may prescribe. (4) Duties LabCFTC shall— (A) advise the Commission with respect to rulemakings or other agency or staff action regarding financial technology; (B) provide internal education and training to the Commission regarding financial technology; (C) advise the Commission regarding financial technology that would bolster the Commission’s oversight functions; (D) engage with academia, students, and professionals on financial technology issues, ideas, and technology relevant to activities under this Act; (E) provide persons working in emerging technology fields with information on the Commission, its rules and regulations, and the role of a registered futures association; and (F) encourage persons working in emerging technology fields to engage with the Commission and obtain feedback from the Commission on potential regulatory issues. (5) Access to documents The Commission shall ensure that LabCFTC has full access to the documents and information of the Commission and any self-regulatory organization or registered futures association, as necessary to carry out the functions of LabCFTC. (6) Report to Congress (A) In general Not later than October 31 of each year after 2024, LabCFTC shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on its activities. (B) Contents Each report required under paragraph (1) shall include— (i) the total number of persons that met with LabCFTC; (ii) a summary of general issues discussed during meetings with the person; (iii) information on steps LabCFTC has taken to improve Commission services, including responsiveness to the concerns of persons; (iv) recommendations made to the Commission with respect to the regulations, guidance, and orders of the Commission and such legislative actions as may be appropriate; and (v) any other information determined appropriate by the Director of LabCFTC. (C) Confidentiality A report under paragraph (A) shall abide by the confidentiality requirements in section 8. (7) Systems of records (A) In general The Commission shall establish a detailed system of records (as defined in section 552a of title 5, United States Code) to assist LabCFTC in communicating with interested parties. (B) Persons covered by the system The persons covered by the system of records shall include persons submitting requests or inquiries and other information to the Commission through LabCFTC. (C) Security and storage of records The system of records shall store records electronically or on paper in secure facilities, and shall store electronic records on the secure network of the Commission and on other electronic media, such as encrypted hard drives and back-up media, as needed. . (b) Conforming amendments Section 2(a)(6)(A) of the Commodity Exchange Act ( 7 U.S.C. 2(a)(6)(A) ) is amended— (1) by striking paragraph and in and inserting paragraph, ; and (2) by inserting and section 18(c)(3), before the executive . (c) Effective date The Commodity Futures Trading Commission shall implement the amendments made by this section (including complying with section 18(c)(7) of the Commodity Exchange Act) within 180 days after the date of the enactment of this Act.