H.R. 4763 - Financial Innovation and Technology for the 21st Century Act

Bill Text

    Rules Committee Print 118-33 PDF

    Showing the text of H.R. 4763, as ordered reported by the Committee on Financial Services and the Committee on Agriculture, with modifications.

    Text of H.R. 4763 PDF XML

    (as reported)

    Comparative Print PDF

    Showing the differences between the text of H.R. 4763, as reported by the Committee on Agriculture, and Rules Committee Print 118-33.

    Comparative Print PDF

    Showing the differences between the text of H.R. 4763, as reported by the Committee on Financial Services, and Rules Committee Print 118-33.

    H. Rept. 118-484, Part I PDF

    Report from the Committee on Agriculture to accompany H.R. 4763

    H. Rept. 118-484, Part II PDF

    Report from the Committee on Financial Services to accompany H.R. 4763

Rule Information

COMMITTEE ACTION:
REPORTED BY A RECORD VOTE of 8-3 on Tuesday, May 21, 2024.

FLOOR ACTION ON H. RES. 1243:
Agreed to by a record vote of 204-203, after agreeing to the previous question by a record vote of 205-203, on Wednesday, May 22, 2024.

MANAGERS: Houchin/McGovern

1.

Structured rule for H.R. 4763.

2.

Waives all points of order against consideration of the bill.

3.

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.

4.

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 Rules Committee Report, shall be considered as adopted and the bill, as amended, shall be considered as read.

5.

Waives all points of order against provisions in the bill, as amended.

6.

Makes in order only those amendments printed in part B of the Rules Committee 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.

7.

Waives all points of order against the amendments printed in part B of the Rules Committee report.

8.

Provides one motion to recommit.

9.

Structured rule for H.R. 5403.

10.

Waives all points of order against consideration of the bill.

11.

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.

12.

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.

13.

Waives all points of order against provisions in the bill, as amended.

14.

Makes in order only those amendments printed in part C of the Rules Committee 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.

15.

Waives all points of order against the amendments printed in part C of the Rules Committee report.

16.

Provides one motion to recommit.

17.

Closed rule for H.R. 192.

18.

Waives all points of order against consideration of the bill.

19.

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.

20.

Waives all points of order against provisions in the bill, as amended. 

21.

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.

22.

Provides one motion to recommit.

Amendments (click headers to sort)

#Version #Sponsor(s)PartySummaryStatus
1Version 2Garamendi (CA)DemocratRevised Closes the "Crypto Bro" tax loophole by prohibiting day traders from claiming federal tax deductions for short-term trades of cryptocurrency at an artificial loss only to then rebuy the same security within 30 days. The Internal Revenue Code already prevents capital gains tax deductions for so-called "wash sales" of stocks and other tradeable securities.Revised
2Version 1Foster (IL), Sherman (CA), Casten (IL)DemocratEnsures that the Financial Crimes Enforcement Network (FinCEN) retains the authority to monitor and address money laundering or other financial crimes related to self-custody of digital assets.Submitted
3Version 1Foster (IL)DemocratStates that this Act shall not go into effect until after the SEC, in consultation with the Financial Crimes Enforcement Network (FinCEN), determines that the systems and related technologies in use by the SEC are adequate to ensure that the beneficial owners of digital assets (encompassing non-U.S. persons and persons using multiple digital asset wallets) cannot evade compliance with the beneficial ownership reporting requirements described on page 4 of this act.Submitted
4Version 1Foster (IL), Casten (IL)DemocratPlaces a 2-year moratorium on the issuance of endogenously collateralized stablecoins, whose value relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price. Requires the Secretary of the Treasury to carry out a study of endogenously collateralized stablecoins.Submitted
5Version 1Foster (IL), Sherman (CA)DemocratEnsures that the safe harbor from SEC enforcement actions provided by this act will not exempt digital asset firms from safeguards meant to protect investors, national security, or economic stability.Submitted
6Version 1Pettersen (CO)DemocratClarifies 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.Made in Order
7Version 1Lynch (MA)DemocratRequires any digital asset trading system, broker, dealer, digital commodity exchanges, brokers, and dealers, or similar entity to disclose the material connection to the individuals or organizations promoting or endorsing their digital assets products, and the amount they are paying individuals or organizations for such promotions and endorsements.Submitted
8Version 1Castor (FL), Salinas (OR), Huffman (CA), Casten (IL)DemocratRequires the CFTC to examine the energy consumption associated with the most widely traded digital commodities, as well as the effects of crypto mining on national, regional, and local energy prices.Submitted
9Version 1Huffman (CA), Casten (IL), Castor (FL)DemocratDirects the CFTC and SEC to carry out a joint study, in consultation with appropriate Federal agencies, on the environmental impacts of digital asset mining.Submitted
10Version 1Huffman (CA), Castor (FL)DemocratDirects the SEC to establish climate-related risk disclosures for large digital asset mining operations including reports on direct and indirect greenhouse gas emissions.Submitted
11Version 1Sherman (CA)DemocratClarifies that nothing in this Act may be construed to preempt any State law or regulation (or enforcement thereof) in effect on the day before the date of enactment of this Act.Submitted
12Version 1Davidson (OH)RepublicanIncludes a new Title to prohibit Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods and services for the person's own use. Ensures the ability of citizens to self-custody their of digital assets.Submitted
13Version 1Casten (IL), Foster (IL), Sherman (CA), Cleaver (MO)DemocratPlaces 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. Directs the Treasury Department to conduct a study on the illicit uses of digital asset mixers, privacy coins, and other anonymity-enhancing technologies.Submitted
14Version 1Casten (IL), Foster (IL), Sherman (CA), Cleaver (MO)DemocratDirects the Treasury Department to conduct a study on the illicit uses of digital asset mixers, privacy coins, and other anonymity-enhancing technologies.Submitted
15Version 2Casten (IL), Casar (TX)DemocratRevised Strikes Title II. This section would create new opportunities for issuers, including non-crypto firms, to escape SEC registration requirements.Revised
16Version 1Casar (TX)DemocratThis amendment would allow for SEC, as well as the CFTC, to establish a fee structure, charging a fee to crypto companies looking to use this framework. Exchanges or brokers either filing notice of intent to register, or register, must pay the amounts deemed fit by the SEC, and on an annual basis.Submitted
17Version 1Casten (IL)DemocratExtends the timeline from 60 days to 90 days for the SEC to review decentralization certification applications and eliminates the presumption that a digital asset is decentralized at the end of the time period for review.Submitted
18Version 1Casten (IL)DemocratDirects the CFTC to promulgate regulations prohibiting gamified designs and mechanisms to be established on digital commodity exchanges.Submitted
19Version 1Williams (GA)DemocratSeeks to bring CFTC, SEC and CFPB together to develop rules and guidance to address customer protection concerns with digital assets in video games and virtual worlds.Submitted
20Version 1Garcia (TX)DemocratThis amendment would require an SEC/CFTC public-private working group on elder fraud involving cryptocurrency, such as romance scams, investor scams, and pig butchering. The WG would make recommendations to Congress in addition to designing public-facing materials to help older Americans and their families to protect them from falling victim to such fraud.Submitted
21Version 1Casten (IL)DemocratRequires a cryptocurrency mining operation to disclose details about the location of and the foreign ownership of an operation located within 5 miles of a military base. Directs the SEC and CFTC to share this information with the Treasury Department, the Financial Crimes Enforcement Network, and the Committee on Foreign Investment in the United States.Submitted
22Version 1Beatty (OH)DemocratEstablishes a mandatory financial literacy class for users who are buying and selling digital assets. Prohibits marketing and advertising that targets children under the age of 13; requires educational labeling on advertisements including warnings and disclosures indicating the risks of monetary loss and related harm. Requires users to be at least 21 years old to register to digital commodity exchanges and buy and sell digital assets, subject to the rules and regulations established by the CFTC.Submitted
23Version 1Casar (TX)DemocratStrikes Section 301. Section 301 allows digital asset project developers (digital asset issuers) to raise initial funds to build their project through a newly created registration exemption that is significantly more generous than existing SEC registration exemptions and opens the door for significant investor harm.Submitted
24Version 1Casar (TX)DemocratWithdrawn Strike Title II of the bill. Title II “Clarity for Assets Offered as Part of an Investment Contract” is unnecessary for the broader purpose of the bill and will create new opportunities for issuers (not just of digital assets) to escape SEC registration requirements.Withdrawn
25Version 1Casar (TX)DemocratChanges the new crowdfunding exemption from $75 million to $5 million. $5 million is the same as the current crowdfunding exemption.Made in Order
26Version 1Beatty (OH)DemocratRequires the SEC to issue covered recordkeeping and internal accounting control rules applicable to digital asset brokers, digital asset dealers, and digital asset trading systems. Requires the CFTC to issue covered recordkeeping and internal accounting control rules applicable to digital commodity brokers, digital commodity dealers, and digital commodity exchanges.Submitted
27Version 1Kamlager-Dove (CA)DemocratWithdrawn This amendment would require digital asset trading system, broker, dealer, and digital commodity exchanges, brokers, and dealers to establish warning labels in user interfaces describing the risks associated with digital assets trading, and must disclose facts and figures on the average user’s returns and losses.Withdrawn
28Version 2Norman (SC)RepublicanLate Revised Requires a study on the impact of digital asset registrants owned by foreign adversaries.Made in Order
29Version 1Perry (PA)RepublicanLate Inserts the text of H.R. 5403, the CBDC Anti-Surveillance State Act, as a new title at the end of the bill.Submitted
30Version 1Thompson (PA)RepublicanMANAGER’S AMENDMENT Late 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.Considered as Adopted
31Version 1Perry (PA)RepublicanLate 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.Made in Order
32Version 1Beyer (VA)DemocratLate Requires digital asset trading platforms to report all transactions to a repository registered with the Commodity Futures Trading Commission.Submitted

Committee Votes

Rules Committee Record Vote No. 228

Motion by Ms. Leger Fernández 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 Member
Vote
Mr. Reschenthaler
Nay
Mrs. Fischbach
Nay
Mr. Massie
No Vote
Mr. Norman
Nay
Mr. Roy
Nay
Mrs. Houchin
Nay
Mr. Langworthy
Nay
Mr. Austin Scott
Nay
Mr. Burgess, Chairman
Nay
Minority Member
Vote
Mr. McGovern
Yea
Ms. Scanlon
Yea
Mr. Neguse
No Vote
Ms. Leger Fernández
Yea
Rules Committee Record Vote No. 229

Motion by Mrs. Houchin to report the rule. Adopted: 8–3 

Majority Member
Vote
Mr. Reschenthaler
Yea
Mrs. Fischbach
Yea
Mr. Massie
No Vote
Mr. Norman
Yea
Mr. Roy
Yea
Mrs. Houchin
Yea
Mr. Langworthy
Yea
Mr. Austin Scott
Yea
Mr. Burgess, Chairman
Yea
Minority Member
Vote
Mr. McGovern
Nay
Ms. Scanlon
Nay
Mr. Neguse
No Vote
Ms. Leger Fernández
Nay