H.R.3690 - Securing Innovation in Financial Regulation Act (119th Congress)
Summary
H.R. 3690, the "Securing Innovation in Financial Regulation Act," aims to codify the Office of the Strategic Hub for Innovation and Financial Technology (FinHub) at the Securities and Exchange Commission (SEC) and LabCFTC at the Commodity Futures Trading Commission (CFTC). These entities are designed to support engagement on emerging technologies in the financial sector. The bill mandates these hubs to serve as resources, engage with market participants, and facilitate communication between the commissions and businesses working in emerging financial technology fields.
Expected Effects
The bill's passage would formally establish FinHub and LabCFTC, ensuring their continued operation and providing a statutory basis for their activities. This formalization could lead to increased regulatory clarity and support for fintech innovation. It also mandates annual reports to Congress, enhancing transparency and accountability.
Potential Benefits
- Promotes Innovation: By codifying FinHub and LabCFTC, the bill encourages the development and adoption of new financial technologies.
- Enhances Regulatory Clarity: Formalizing these hubs provides a clear point of contact for fintech companies seeking guidance on regulatory compliance.
- Improves Communication: The bill facilitates better communication between regulators and businesses, fostering a more collaborative environment.
- Increases Transparency: Mandating annual reports to Congress ensures greater transparency and accountability for the activities of FinHub and LabCFTC.
- Supports Economic Growth: By fostering innovation in the financial sector, the bill can contribute to economic growth and job creation.
Most Benefited Areas:
Potential Disadvantages
- Potential for Regulatory Capture: Formalizing these hubs could create opportunities for regulatory capture by established fintech companies.
- Increased Bureaucracy: The formalization of these hubs could lead to increased bureaucracy and slower decision-making processes.
- Unintended Consequences: New financial technologies can have unforeseen consequences, and the bill may not adequately address these risks.
- Duplication of Efforts: There may be overlap between the functions of FinHub and LabCFTC, leading to duplication of efforts and inefficiencies.
- Limited Scope: The bill focuses primarily on the SEC and CFTC, potentially neglecting other regulatory agencies that may be relevant to fintech innovation.
Constitutional Alignment
The bill appears to align with the US Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce. By codifying FinHub and LabCFTC, Congress is exercising its authority to regulate the financial sector and promote innovation. The bill does not appear to infringe on any individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).