Securing Innovation in Financial Regulation Act
This bill would formally establish and codify two entities focused on financial technology within U.S. financial regulators: the SEC’s Office of the Strategic Hub for Innovation and Financial Technology (FinHub) and the CFTC’s LabCFTC. FinHub would be created as a committee to engage with emerging financial technologies, provide a resource to the SEC, and communicate with market participants—with annual activity reports to Congress starting after 2025. LabCFTC would be established within the CFTC as a dedicated office led by a Director, tasked with promoting responsible fintech innovation, informing regulatory actions, educating staff, engaging with academia and industry, and providing outreach about the regulatory framework. The bill also requires annual reporting from LabCFTC, sets record-keeping and confidentiality standards, and makes conforming amendments to existing law. The provisions would take effect within 180 days of enactment.
Key Points
- 1FinHub establishment and purpose within the SEC
- 2- Creates FinHub to engage on emerging financial technologies, supported by relevant SEC divisions, and to act as a liaison between the Commission and fintech market participants.
- 3- FinHub’s duties include serving as a technology-focused resource and facilitating communication about rules and regulations.
- 4FinHub reporting and transparency
- 5- FinHub must provide an annual summary of engagement activities to the SEC, to be included in the Commission’s annual report to Congress.
- 6- Reports are required to avoid disclosing confidential information.
- 7Codification and mission of LabCFTC
- 8- Establishes LabCFTC within the CFTC to promote responsible fintech innovation, inform the Commission about new fintech developments, and provide outreach to innovators regarding regulatory frameworks.
- 9- LabCFTC will have a Director who reports directly to the Commission and carries out specified duties.
- 10LabCFTC duties and engagement
- 11- Duties include advising on rulemakings, educating the Commission’s staff, engaging with academia and industry, providing information about the Commission and its regulations, and encouraging engagement with regulators to receive feedback.
- 12Annual reporting and record-keeping for LabCFTC
- 13- LabCFTC must annually report to the House and Senate Agriculture Committees detailing activities, meetings, topics discussed, steps to improve services, regulatory recommendations, and other information deemed appropriate.
- 14- The bill requires maintaining records of engagements, storing communications in line with data retention policies, and protecting confidential or proprietary information.
- 15Effective date and conforming amendments
- 16- The amendments must be implemented within 180 days after enactment, including alignment with existing confidentiality and record-keeping provisions.