Tokenization Report Act of 2024

Bill: 118-hr-8464
Sponsor: full_name: Rep. Timmons, William R. [R-SC-4]
Introduced: 2024-05-17
Policy area: Finance and Financial Sector
Latest action: action_date: 2024-05-17
text: Referred to the House Committee on Financial Services.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8464 IN THE HOUSE OF REPRESENTATIVES May 17, 2024 Mr. Timmons (for himself and Mr. Torres of New York ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Board of Governors of the Federal Reserve System, the Board of Directors of the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the National Credit Union Administration Board to jointly submit a report on trends in the use of blockchain technology to tokenize traditional assets, and for other purposes.

1. Short title This Act may be cited as the Tokenization Report Act of 2024 . 2. Report on trends in tokenization of traditional assets using blockchain technology (a) Report required Not later than 180 days after the date of the enactment of this Act, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the National Credit Union Administration Board shall jointly submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on trends in the use of blockchain technology to tokenize traditional assets. (b) Contents of report The report required under subsection (a) shall include the following elements: (1) The potential benefits and risks of utilizing blockchain networks for traditional asset tokenization, including the impacts to settlement efficiency, cost, counterparty risk, and any other impacts. (2) The critical differences between permissioned and permissionless blockchain networks for traditional asset tokenization. (3) The current state of blockchain interoperability and integration capabilities across different networks and platforms, and the effects on widespread adoption of such capabilities. (4) Emerging global regulatory approaches to tokenized traditional assets, including differential capital requirements based on underlying technology. (5) Whether additional guidance or rules are necessary to facilitate traditional asset tokenization. (6) How control features of blockchain networks impact the ability of tokenized traditional assets to retain their existing risk profile. (7) A summary of the legal permissibility and regulatory requirements of the use of blockchain technology to tokenize traditional assets. (c) Public input The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the National Credit Union Administration Board shall collect public input to inform the drafting of the report required under subsection (a). (d) Blockchain defined In this section, the term blockchain means any technology where data is— (1) shared across a network to create a ledger of verified transactions or information among network participants; (2) linked using cryptography to maintain the integrity of the ledger and to execute other functions; and (3) distributed among network participants in an automated fashion to concurrently update network participants on the state of the ledger and any other functions.