119-hr3690

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

    (IH) ]

<DOC>

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

_______________________________________________________________________

 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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