[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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