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Creates two dedicated fintech innovation offices inside the federal securities and derivatives regulators: a Strategic Hub for Innovation and Financial Technology (FinHub) at the SEC and LabCFTC at the CFTC. Each office must be established within 180 days, will study and engage with emerging financial technologies, provide education and outreach, advise its Commission, and produce annual reports for congressional review. FinHub must produce non-confidential annual reports to the SEC that are included in the SEC’s report to Congress. LabCFTC will be led by a Director appointed by the CFTC, keep records of engagements, advise the Commission, and begin annual reporting to certain congressional committees after 2025. The law sets duties, timelines, and reporting requirements but does not specify new appropriations.
Adds a new subsection (k) titled "Strategic Hub for Innovation and Financial Technology" to Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d).
Not later than 180 days after the date of enactment of this subsection, the SEC shall establish a committee called the Strategic Hub for Innovation and Financial Technology (FinHub) to support engagement on emerging technologies in the financial sector.
The Commission shall determine the composition of FinHub, drawing members from relevant divisions as appropriate, including the Division of Trading and Markets, Division of Corporate Finance, and Division of Investment Management.
FinHub shall serve as a resource for the Commission on emerging financial technology advancements.
FinHub shall engage with market participants working on emerging financial technologies.
Who is affected and how:
Financial technology companies and startups: They gain formalized and regular channels for engagement, education, and advisory input with the SEC and CFTC. This may speed dialogue on new products, clarify regulator expectations, and increase opportunities for pilots or constructive feedback.
Technology and critical/emerging-technology firms working in finance: Increased outreach and education from the two agencies can lower informational barriers and provide clearer guidance on compliance considerations for novel technologies.
SEC and CFTC staff and operations: Agencies must allocate staff time and resources to create, run, and report for these new offices within a 180-day deadline. The CFTC must hire or designate a Director for LabCFTC and keep records of engagements.
Investors and market participants: Improved regulatory engagement and transparency may translate into clearer expectations and potentially faster resolution of questions about new fintech products. Public reporting should increase Congressional and public visibility into how regulators engage with innovators.
Congress and oversight committees: Annual reports give Congress regular, non-confidential information about agency engagement with fintech and the state of innovation-related issues, supporting oversight and potential future legislation.
Practical implications and limitations:
Updated 7 hours ago
Last progress September 18, 2025 (4 months ago)
Last progress June 3, 2025 (8 months ago)
Introduced on June 3, 2025 by Frank D. Lucas
Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.