Sponsor
Frank D. Lucas
Representative · R-OK
Representative · R-OK
The bill creates dedicated SEC and CFTC fintech liaisons and public summaries to improve regulator expertise and clarity for innovators, trading off modest taxpayer costs and the risk that informal engagement and confidentiality will advantage well‑connected firms and limit public scrutiny.
Fintech startups, tech companies, and financial firms gain clear, dedicated channels at both the SEC (FinHub) and CFTC (LabCFTC) to explain innovations, ask questions, and receive informal guidance—making it easier to navigate compliance and engage regulators.
SEC and CFTC staff receive focused education, training, and expert input on emerging technologies, which can improve regulator expertise and lead to timelier, more effective oversight that reduces regulatory errors and market risks.
Both agencies will produce annual non‑confidential summaries of Lab/Hub engagement, increasing public and congressional transparency about the issues innovators raise and the outreach regulators conduct.
Direct, informal engagement channels risk privileging well‑resourced or well‑connected firms—giving them informal influence over rulemaking and creating fairness/competition concerns for smaller market participants.
Establishing and operating FinHub and LabCFTC will impose additional administrative costs on the SEC and CFTC funded by federal resources, producing modest taxpayer-funded overhead.
Confidentiality protections for submissions mean annual public summaries will exclude sensitive material, limiting meaningful public scrutiny of feedback that may have informed regulations or related enforcement/risk issues.
Based on analysis of 3 sections of legislative text.
Creates an SEC FinHub and codifies LabCFTC at the CFTC to centralize fintech engagement, advisory duties, outreach, and annual non-confidential reporting.
Official title: 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.
Introduced June 3, 2025 by Frank D. Lucas · Last progress June 3, 2025
Creates two formal, inside-the-agency fintech engagement units: a FinHub at the SEC and a codified LabCFTC at the CFTC. Both offices must be stood up quickly, will coordinate agency interactions with fintech firms and market participants, provide input on rulemakings, do outreach and training, and deliver annual non-confidential engagement summaries to Congress starting in 2026 (CFTC reports due annually after 2025).