H. Rept. 118-516 - PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 4763) TO PROVIDE FOR A SYSTEM OF REGULATION OF DIGITAL ASSETS BY THE COMMODITY FUTURES TRADING COMMISSION AND THE SECURITIES AND EXCHANGE COMMISSION, AND FOR OTHER PURPOSES; PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5403) TO AMEND THE FEDERAL RESERVE ACT TO PROHIBIT THE FEDERAL RESERVE BANKS FROM OFFERING CERTAIN PRODUCTS OR SERVICES DIRECTLY TO AN INDIVIDUAL, TO PROHIBIT THE USE OF CENTRAL BANK DIGITAL CURRENCY FOR MONETARY POLICY, AND FOR OTHER PURPOSES; AND PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 192) TO PROHIBIT INDIVIDUALS WHO ARE NOT CITIZENS OF THE UNITED STATES FROM VOTING IN ELECTIONS IN THE DISTRICT OF COLUMBIA118th Congress (2023-2024)
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118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-516
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 4763) TO PROVIDE FOR A
SYSTEM OF REGULATION OF DIGITAL ASSETS BY THE COMMODITY FUTURES TRADING
COMMISSION AND THE SECURITIES AND EXCHANGE COMMISSION, AND FOR OTHER
PURPOSES; PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5403) TO AMEND
THE FEDERAL RESERVE ACT TO PROHIBIT THE FEDERAL RESERVE BANKS FROM
OFFERING CERTAIN PRODUCTS OR SERVICES DIRECTLY TO AN INDIVIDUAL, TO
PROHIBIT THE USE OF CENTRAL BANK DIGITAL CURRENCY FOR MONETARY POLICY,
AND FOR OTHER PURPOSES; AND PROVIDING FOR CONSIDERATION OF THE BILL
(H.R. 192) TO PROHIBIT INDIVIDUALS WHO ARE NOT CITIZENS OF THE UNITED
STATES FROM VOTING IN ELECTIONS IN THE DISTRICT OF COLUMBIA
_______
May 21, 2024.--Referred to the House Calendar and ordered to be printed
_______
Mrs. Houchin, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 1243]
The Committee on Rules, having had under consideration
House Resolution 1243, by a record vote of 8 to 3, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 4763, the
Financial Innovation and Technology for the 21st Century Act,
under a structured rule. The resolution waives all points of
order against consideration of the bill. The resolution
provides one hour of general debate equally divided and
controlled by the chair and ranking minority member of the
Committee on Financial Services or their respective designees.
The resolution provides that in lieu of the amendments in the
nature of a substitute recommended by the Committees on
Agriculture and Financial Services now printed in the bill, an
amendment in the nature of a substitute consisting of the text
of Rules Committee Print 118-33, modified by the amendment
printed in part A of the report, shall be considered as adopted
and the bill, as amended, shall be considered as read. The
resolution waives all points of order against provisions in the
bill, as amended. The resolution makes in order only those
amendments printed in part B of the report. Each such amendment
may be offered only in the order printed in the report, may be
offered only by a Member designated in the report, shall be
considered as read, shall be debatable for the time specified
in the report equally divided and controlled by the proponent
and an opponent, shall not be subject to amendment, and shall
not be subject to a demand for division of the question. All
points of order against the amendments printed in part B of the
report are waived. The resolution provides for one motion to
recommit. The resolution further provides for consideration of
H.R. 5403, the CBDC Anti-Surveillance State Act, under a
structured rule. The resolution waives all points of order
against consideration of the bill. The resolution provides one
hour of general debate equally divided and controlled by the
chair and ranking minority member of the Committee on Financial
Services or their respective designees. The resolution provides
that the amendment in the nature of a substitute recommended by
the Committee on Financial Services now printed in the bill
shall be considered as adopted and the bill, as amended, shall
be considered as read. The resolution waives all points of
order against provisions in the bill, as amended. The
resolution makes in order only those amendments printed in part
C of the report. Each amendment made in order may be offered
only in the order printed in the report, may be offered only by
a Member designated in the report, shall be considered as read,
shall be debatable for the time specified in the report equally
divided and controlled by the proponent and an opponent, shall
not be subject to amendment, and shall not be subject to a
demand for division of the question. All points of order
against the amendments printed in part C of the report are
waived. The resolution provides for one motion to recommit. The
resolution further provides for consideration of H.R. 192, to
prohibit individuals who are not citizens of the United States
from voting in elections in the District of Columbia, under a
closed rule. The resolution waives all points of order against
consideration of the bill. The resolution provides that the
amendment in the nature of a substitute recommended by the
Committee on Oversight and Accountability now printed in the
bill shall be considered as adopted and the bill, as amended,
shall be considered as read. The resolution waives all points
of order against provisions in the bill, as amended. The
resolution provides one hour of general debate equally divided
and controlled by the chair and ranking minority member of the
Committee on Oversight and Accountability or their respective
designees. The resolution provides for one motion to recommit.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
H.R. 4763 includes:
--Clause 10 of rule XXI, which prohibits consideration of a
measure if it has the net effect of increasing mandatory
spending over the five-year or ten-year period.
--Clause 3(c)(6) of rule XIII, which requires the committee
report on a bill or joint resolution to be considered pursuant
to a special order of business reported by the Committee on
Rules include i) a list of related committee and subcommittee
hearings; and ii) a designation of at least one committee
hearing that was used to develop or consider such measure.
The waiver of all points of order against provisions in
H.R. 4763, as amended, includes:
--Clause 5(a) of rule XXI, which prohibits a bill or joint
resolution carrying a tax or tariff measure from being reported
by a committee not having jurisdiction to report tax or tariff
measures.
Although the resolution waives all points of order against
the amendments printed in part B of the report, the Committee
is not aware of any points of order. The waiver is prophylactic
in nature.
Although the resolution waives all points of order against
consideration of H.R. 5403, the Committee is not aware of any
points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
provisions in H.R. 5403, as amended, the Committee is not aware
of any points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
the amendments printed in part C of the report, the Committee
is not aware of any points of order. The waiver is prophylactic
in nature.
Although the resolution waives all points of order against
consideration of H.R. 192, the Committee is not aware of any
points of order. The waiver is prophylactic in nature.
Although the resolution waives all points of order against
provisions in H.R. 192, as amended, the Committee is not aware
of any points of order. The waiver is prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 228
Motion by Ms. Leger Fernandez to amend the rule to make in
order amendments #13, #14, and #15 to H.R. 4763, each offered
by Representative Casten. Amendment #13 places a two-year
moratorium to prohibit financial institutions from transacting
with incoming funds that have been routed through digital asset
mixers and outgoing funds routed directly to digital asset
mixers and directs the Treasury Department to conduct a study
on the illicit uses of digital asset mixers, privacy coins, and
other anonymity-enhancing technologies; amendment #14 directs
the Treasury Department to conduct a study on the illicit uses
of digital asset mixers, privacy coins, and other anonymity-
enhancing technologies; and amendment #15 strikes Title II,
which would create new opportunities for issuers, including
non-crypto firms, to escape SEC registration requirements.
Defeated: 3-8
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Mr. Reschenthaler............................... Nay Mr. McGovern...................... Yea
Mrs. Fischbach.................................. Nay Ms. Scanlon....................... Yea
Mr. Massie...................................... ............ Mr. Neguse........................ ............
Mr. Norman...................................... Nay Ms. Leger Fernandez............... Yea
Mr. Roy......................................... Nay
Mrs. Houchin.................................... Nay
Mr. Langworthy.................................. Nay
Mr. Austin Scott................................ Nay
Mr. Burgess, Chairman........................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 229
Motion by Mrs. Houchin to report the rule. Adopted: 8-3
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Mr. Reschenthaler............................... Yea Mr. McGovern...................... Nay
Mrs. Fischbach.................................. Yea Ms. Scanlon....................... Nay
Mr. Massie...................................... ............ Mr. Neguse........................ ............
Mr. Norman...................................... Yea Ms. Leger Fernandez............... Nay
Mr. Roy......................................... Yea
Mrs. Houchin.................................... Yea
Mr. Langworthy.................................. Yea
Mr. Austin Scott................................ Yea
Mr. Burgess, Chairman........................... Yea
----------------------------------------------------------------------------------------------------------------
SUMMARY OF THE AMENDMENT TO H.R. 4763 IN PART A CONSIDERED AS ADOPTED
1. Thompson (PA): Requires fees during the period when
entities may file a notice of intent to register as a digital
commodity exchange, broker, or dealer to be set by the
appropriators.
SUMMARY OF THE AMENDMENTS TO H.R. 4763 IN PART B MADE IN ORDER
1. Casar (TX): Changes the new crowdfunding exemption from
$75 million to $5 million. $5 million is the same as the
current crowdfunding exemption. (10 minutes)
2. Pettersen (CO): Clarifies the application of the Bank
Secrecy Act to digital asset and digital commodity entities and
requires a GAO study on risks posed by centralized
intermediaries that are primarily located in foreign
jurisdictions without regulatory requirements similar to those
of the Bank Secrecy Act. (10 minutes)
3. Norman (SC): Requires a study on the impact of digital
asset registrants owned by foreign adversaries. (10 minutes)
4. Perry (PA): Adds a sense of Congress to the end of title
V that nothing in this Act or any amendment made by this Act
should be interpreted to authorize any entity to regulate any
commodity, other than a digital commodity, on any spot market.
(10 minutes)
SUMMARY OF THE AMENDMENTS TO H.R. 5403 IN PART C MADE IN ORDER
1. Ogles (TN): Adds a sense of Congress that the Board of
Governors of the Federal Reserve System and the Federal Open
Market Committee should not be permitted to develop, create, or
implement a central bank digital currency, or use any such tool
to implement monetary policy. (10 minutes)
2. Mooney (WV), Norman (SC), Sessions (TX), Rose (TN),
Davidson (OH), Duncan (SC), Brecheen (OK), Self (TX), Weber
(TX), Ogles (TN): Prohibits the Federal Reserve's Central Bank
Digital Currency (CBDC) pilot programs. (10 minutes)
3. Davidson (OH): Ensures the Federal Reserve Bank cannot
design, build, develop, establish, or issue a CBDC. Ensures the
Treasury Department cannot direct the Federal Reserve Bank to
do any of the above actions. (10 minutes)
PART A--TEXT OF AMENDMENT TO H.R. 4763 CONSIDERED AS ADOPTED
Page 219, strike line 13.
Page 219, line 14, strike ``(A)'' and insert ``(1)'' and
adjust the margin 2 ems to the left.
Page 219, strike line 22 and all that follows through page
222, line 11, and insert the following:
(2) Amount.--The fees authorized under paragraph (1)
may be collected and available for obligation only in
the amounts provided in advance in an appropriation
Act.
Page 222, line 12, strike ``(4)'' and insert ``(2)''.
Page 224, line 7, strike ``filing fees and annual''.
Page 224, line 10, strike ``maximum amount determined under
subsection (a)(2)(B)(ii)'' and insert ``amount provided under
subsection (a)(2)''.
Page 224, strike line 16 and all that follows through page
225, line 6, and insert the following:
(e) Deposit of Fees Into the Treasury.--All amounts collected
under this section shall be credited to the currently
applicable appropriation, account, or fund of the Commission as
discretionary offsetting collections, and shall be available
for the purposes authorized in subsection (f) only to the
extent and in the amounts provided in advance in appropriations
Acts.
(f) Authorization of Appropriations.--In addition to amounts
otherwise authorized to be appropriated to the Commission,
there is authorized to be appropriated to the Commission
amounts collected under this section to cover the costs the
costs of carrying out the functions of the Commission under
this Act.
Page 244, line 5, strike ``The'' and insert ``Subject to the
availability of funds, the''.
Page 247, line 25, strike ``15H(c)'' and insert ``15I(a)''.
Page 248, line 1, strike ``4v(c)'' and insert ``4v(a)''.
PART B--TEXT OF AMENDMENTS TO H.R. 4763 MADE IN ORDER
1. An Amendment To Be Offered by Representative Casar of Texas or His
Designee, Debatable for 10 Minutes
Page 68, line 11, strike ``$75,000,000'' and insert
``$5,000,000''.
----------
2. An Amendment To Be Offered by Representative Pettersen of Colorado
or Her Designee, Debatable for 10 Minutes
In title I, add at the end the following:
SEC. 112. APPLICATION OF THE BANK SECRECY ACT.
(a) In General.--Section 5312 of title 31, United States
Code, is amended--
(1) in subsection (a)(2)(G), by striking ``or
dealer'' and inserting ``, dealer, digital asset
broker, digital asset dealer, or digital asset trading
system''; and
(2) in subsection (c)(1)(A)--
(A) by inserting ``digital commodity broker,
digital commodity dealer,'' after ``futures
commission merchant,''; and
(B) by inserting before the period the
following: ``and any digital commodity exchange
registered, or required to register, under the
Commodity Exchange Act which permits direct
customer access''.
(b) GAO Study.--
(1) In general.--The Comptroller General of the
United States, in consultation with the Secretary of
the Treasury, shall conduct a study to--
(A) assess the risks posed by centralized
intermediaries that are primarily located in
foreign jurisdictions that provide services to
U.S. persons without regulatory requirements
that are substantially similar to the
requirements of the Bank Secrecy Act; and
(B) provide any regulatory or legislative
recommendations to address these risks under
subparagraph (A).
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall
issue a report to Congress containing all findings and
determinations made in carrying out the study required
under paragraph (1).
Page 105, strike lines 1 through 4.
Page 121, strike line 7 and all that follows through ``Bank
Secrecy Act.'' on line 10.
Page 183, strike lines 14 through 17.
Page 215, strike line 6 and all that follows through ``Bank
Secrecy Act.'' on line 9.
----------
3. An Amendment To Be Offered by Representative Norman of South
Carolina or His Designee, Debatable for 10 Minutes
At the end of title IV, add the following:
SEC. 414. STUDIES ON FOREIGN ADVERSARY PARTICIPATION.
(a) In General.--The Secretary of the Treasury, in
consultation with the Commodity Futures Trading Commission and
the Securities and Exchange Commission, shall, not later than 1
year after date of the enactment of this section, conduct a
study and submit a report to the relevant congressional
committees that--
(1) identifies any digital asset registrants which
are owned by governments of foreign adversaries;
(2) determines whether any governments of foreign
adversaries are collecting personal data or trading
data about United States persons in the digital asset
markets; and
(3) evaluates whether any proprietary intellectual
property of digital asset registrants is being misused
or stolen by any governments of foreign adversaries.
(b) GAO Study and Report.--
(1) In general.--The Comptroller General shall, not
later than 1 year after date of the enactment of this
section, conduct a study and submit a report to the
relevant congressional committees that--
(A) identifies any digital asset registrants
which are owned by governments of foreign
adversaries;
(B) determines whether any governments of
foreign adversaries are collecting personal
data or trading data about United States
persons in the digital asset markets; and
(C) evaluates whether any proprietary
intellectual property of digital asset
registrants is being misused or stolen by any
governments of foreign adversaries.
(c) Definitions.--In this section:
(1) Digital asset registrant.--The term ``digital
asset registrant'' means any person required to
register as a digital asset trading system, digital
asset broker, digital asset dealer, digital commodity
exchange, digital commodity broker, or digital
commodity dealer under this Act.
(2) Foreign adversaries.--The term ``foreign
adversaries'' means the foreign governments and foreign
non-government persons determined by the Secretary of
Commerce to be foreign adversaries under section 7.4(a)
of title 15, Code of Federal Regulations.
(3) Relevant congressional committees.--The term
``relevant congressional committees'' means--
(A) the Committees on Financial Services and
Agriculture of the House of Representatives;
and
(B) the Committees on Banking, Housing, and
Urban Affairs and Agriculture, Nutrition, and
Forestry of the Senate.
----------
4. An Amendment To Be Offered by Representative Perry of Pennsylvania
or His Designee, Debatable for 10 Minutes
At the end of title V, add the following:
SEC. __. SENSE OF THE CONGRESS.
It is the sense of the Congress that nothing in this Act or
any amendment made by this Act should be interpreted to
authorize any entity to regulate any commodity, other than a
digital commodity, on any spot market.
PART C--TEXT OF AMENDMENTS TO H.R. 5403 MADE IN ORDER
1. An Amendment To Be Offered by Representative Ogles of Tennessee or
His Designee, Debatable for 10 Minutes
Add at the end the following:
SEC. 7. SENSE OF CONGRESS.
It is the sense of Congress that the Board of Governors of
the Federal Reserve System should not be permitted to develop,
create, or implement a central bank digital currency, or use
any such tool to implement monetary policy.
----------
2. An Amendment To Be Offered by Representative Mooney of West Virginia
or His Designee, Debatable for 10 Minutes
Add at the end the following:
SEC. 7. PROHIBITION ON CENTRAL BANK DIGITAL CURRENCY TESTING.
Section 16A of the Federal Reserve Act, as added by section
5, is amended by adding at the end the following:
``(C) Prohibition on Central Bank Digital Currency Testing.--
Unless authorized by an Act of Congress enacted after the date
of the enactment of this Act, the Board of Governors of the
Federal Reserve System and the Federal reserve banks may not
establish, carry out, or approve a program intended to test the
practicability of issuing a central bank digital currency,
including by partnering or coordinating with a private sector
entity to carry out such a program.''.
----------
3. An Amendment To Be Offered by Representative Davidson of Ohio or His
Designee, Debatable for 10 Minutes
Page 5, line 10, insert ``design, build, develop, establish,
or'' before ``issue''.
Page 5, line 22, insert ``design, build, develop, establish,
or'' before ``issue''.
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