[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3447 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3447

 To amend the Financial Stability Act of 2010 to establish an advisory 
 committee on economic impacts of military escalation by the People's 
        Republic of China toward Taiwan, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 11, 2025

 Mr. McCormick (for himself and Mrs. Shaheen) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Financial Stability Act of 2010 to establish an advisory 
 committee on economic impacts of military escalation by the People's 
        Republic of China toward Taiwan, 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 ``Fortifying United States Markets 
Against PRC Military Escalation Act of 2025''.

SEC. 2. ADVISORY COMMITTEE ON ECONOMIC IMPACTS OF MILITARY ESCALATION 
              BY THE PEOPLE'S REPUBLIC OF CHINA TOWARD TAIWAN.

    Section 111 of the Financial Stability Act of 2010 (12 U.S.C. 5321) 
is amended by adding at the end the following:
    ``(k) Advisory Committee.--
            ``(1) Establishment.--There is established, to advise the 
        Financial Stability Oversight Council, an Advisory Committee on 
        Economic Impacts of Military Escalation by the People's 
        Republic of China toward Taiwan (in this subsection referred to 
        as the `Advisory Committee') to--
                    ``(A) study and report on the market implications 
                and vulnerabilities related to military escalation by 
                the People's Republic of China toward Taiwan; and
                    ``(B) open lines of communication between policy 
                makers, government agencies, and capital market 
                constituents to prepare for a potential response to, 
                and to mitigate economic strain and market volatility 
                related to, any such escalation.
            ``(2) Members.--
                    ``(A) In general.--The Advisory Committee shall 
                consist of--
                            ``(i) a designee of the Securities and 
                        Exchange Commission;
                            ``(ii) a designee of the Commodity Futures 
                        Trading Commission;
                            ``(iii) a designee of the Board of 
                        Governors of the Federal Reserve System; and
                            ``(iv) 10 members to be appointed by the 
                        chairperson of the Advisory Committee from 
                        among persons who are--
                                    ``(I) nongovernmental participants 
                                in capital markets, including market 
                                makers, banks, asset managers, 
                                exchanges, and institutional investors; 
                                and
                                    ``(II) experts on geopolitical risk 
                                related to the People's Republic of 
                                China.
                    ``(B) Chairperson.--The Secretary of the Treasury 
                shall serve as the chairperson of the Advisory 
                Committee.
                    ``(C) Private sector lead.--One of the members 
                appointed under subparagraph (A)(iv) shall serve as the 
                private sector lead for the Advisory Committee.
            ``(3) Meetings.--The Advisory Committee shall meet in 
        person at least 2 times per year, with additional meetings at 
        the call of the chairperson.
            ``(4) Study and recommendations.--Not later than 3 years 
        after the date of the enactment of this subsection, and every 3 
        years thereafter, the Advisory Committee shall--
                    ``(A) conduct a study of the vulnerabilities of the 
                United States economy, markets, and the financial 
                system related to military escalation of the People's 
                Republic of China toward Taiwan that includes an 
                assessment of--
                            ``(i) the estimated total cost to the 
                        United States economy from such escalation;
                            ``(ii) the market impacts and potential 
                        losses faced by United States and global 
                        markets related to such escalation;
                            ``(iii) the capacity of United States 
                        markets to deal with volatility that could 
                        result from such escalation;
                            ``(iv) the impact of such escalation on 
                        securities issued by entities organized under 
                        the laws of the People's Republic of China or 
                        Taiwan and listed on a national securities 
                        exchange in the United States; and
                            ``(v) the likelihood and potential impact 
                        of reductions in holdings by the People's 
                        Republic of China of debt securities issued by 
                        the Department of the Treasury;
                    ``(B) develop and submit to the Council 
                recommendations and supporting analysis based on the 
                results of the study;
                    ``(C) brief Congress and the Secretary of State on 
                the study conducted under subparagraph (A) and the 
                recommendations developed under subparagraph (B); and
                    ``(D) hold a public meeting to present the 
                recommendations and analysis required by subparagraph 
                (B), omitting any portions of such recommendations or 
                analysis that implicate national security concerns.''.
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