Congress pushes to make fintech oversight offices permanent at SEC, CFTC

A bill introduced in the House of Representatives on June 3 would establish permanent offices within the Securities and Exchange Commission and the Commodity Futures Trading Commission to support oversight and engagement with financial technology companies.

H.R. 3690, titled the Securing Innovation in Financial Regulation Act, was introduced by Representative Frank Lucas and referred to the House Committee on Financial Services and, additionally, to the Committee on Agriculture.

The bill would codify the Strategic Hub for Innovation and Financial Technology—known as FinHub—within the SEC. Under the proposed legislation, the commission would be required to establish FinHub as a formal committee no later than 180 days after enactment. FinHub would serve as a resource on emerging financial technologies, engage with market participants, and facilitate communication with companies developing financial innovations. Its members would be drawn from divisions including Trading and Markets, Corporate Finance, and Investment Management.

The bill mandates that FinHub submit an annual summary of engagement activities to the Commission by October 31 each year, which would be included in the Commission’s annual report to Congress. These reports must not contain confidential information.

The bill would also codify LabCFTC as a permanent office within the CFTC. According to the text, LabCFTC would promote responsible financial technology innovation, serve as an information platform for the Commission, and provide outreach to fintech innovators. Its Director, appointed by the Commission, would report directly to the Commission.

Among LabCFTC’s stated responsibilities: advising on rulemaking, providing internal education, engaging with academia and professionals, and maintaining records of public engagements. LabCFTC would be required to submit annual reports by October 31, detailing its activities, including the number of meetings with outside parties, general discussion topics, steps taken to improve Commission services, and any recommendations made to the Commission.

Both agencies would be expected to implement the provisions of the bill, including required reporting and recordkeeping systems, within 180 days of the bill’s enactment.