H.R. 9633

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9633 Introduced in House (IH)]

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118th CONGRESS
2d Session
H. R. 9633

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.

_______________________________________________________________________

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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Securing Innovation in Financial 
Regulation Act''.

SEC. 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.''.

SEC. 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.
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