H.R. 3690

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3690 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 3690

To codify the Office of 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

June 3, 2025

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

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A BILL

To codify the Office of 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. 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:
``(k) Strategic Hub for Innovation and Financial Technology.--
``(1) Establishment.--Not later than 180 days after the 
date of the enactment of this subsection, the Securities and 
Exchange Commission shall establish a committee to be known as 
the Strategic Hub for Innovation and Financial Technology 
(referred to in this subsection as the `FinHub') to support 
engagement on emerging technologies in the financial sector.
``(2) Members.--The composition of FinHub shall be 
determined by the Commission, drawing from relevant divisions 
as appropriate, including the Division of Trading and Markets, 
Division of Corporate Finance, and Division of Investment 
Management.
``(3) Responsibilities.--FinHub shall--
``(A) serve as a resource for the Commission on 
emerging financial technology advancements;
``(B) engage with market participants working on 
emerging financial technologies; and
``(C) facilitate communication between the 
Commission and businesses working in emerging financial 
technology fields with information on the Commission, 
its rules, and regulations.
``(4) Report to the commission.--
``(A) In general.--Not later than October 31 of 
each year after 2025, FinHub shall provide an annual 
summary of its engagement activities to the Commission, 
which shall be included in the Commission's annual 
report to Congress.
``(B) Confidentiality.--Each report submitted under 
this paragraph shall not contain confidential 
information.''.

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) Report to congress.--
``(A) In general.--Not later than October 31 of 
each year after 2025, 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.
``(6) Records and engagement.--The Commission shall--
``(A) maintain systems of records to track 
engagements with the public through LabCFTC;
``(B) store communications and materials received 
in connection with any such engagement in accordance 
with Commission policies and procedures on data 
retention and confidentiality; and
``(C) take reasonable steps to protect any 
confidential or proprietary information received 
through LabCFTC engagement.''.
(b) Conforming Amendments.--Section 2(a)(6)(A) of such 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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