Washington, D.C. – Representative Stephen F. Lynch (MA-08) and Rep. Tom Emmer (MN-06) introduced legislation, H.R. 8989, to require the Securities and Exchange Commission (SEC) to study the operational regulatory challenges and opportunities in the use of distributed ledger technology (DLT) in the post-trade clearing and settlement process.
The legislation, which would require the SEC to produce two reports over two years to identify best practices, steps toward establishing international standards, and the implications of utilizing DLT systems. In studying these issues, the SEC is directed to work with both domestic and international stakeholders.
“I am very hopeful about distributed ledger technology and its use in the clearing and settlement process. These studies will provide the necessary advancement and understanding of this outstanding technology, and will eventually allow for the implementation of these important upgrades. In order to lead in the global financial landscape, we must be exploring and innovating. It has been an honor to work with Chairman Lynch on the Task Force on Financial Technology, and this effort is a great example of the nonpartisan work Congress can advance to support fintech in the United States,” said Emmer.
“Distributed ledger technology, like Blockchain, has the potential to make systems more efficient and more secure,” said Lynch. “Post-trade clearing and settlement is ripe for the kind of evolution that DLT offers. These studies will lay the groundwork for upgrades in our financial markets necessary to maintain the preeminence of the American financial system. I’m grateful for the work of Mr. Emmer on this legislation and am looking forward to working with the SEC to ensure confidence in the technology used in capital markets.”
Representative Lynch is the Chairman and Representative Emmer is the Ranking Member of the Financial Services Committee’s Task Force on Financial Technology. Over the past 18 months, the Task Force has received considerable testimony on the potential benefits of DLT to increase transaction efficiency, transparency, and security.