Tokenization Report Act of 2024

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8464 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 8464

 To require the Board of Governors of the Federal Reserve System, the 
 Board of Directors of the Federal Deposit Insurance Corporation, the 
      Comptroller of the Currency, and the National Credit Union 
Administration Board to jointly submit a report on trends in the use of 
  blockchain technology to tokenize traditional assets, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2024

  Mr. Timmons (for himself and Mr. Torres of New York) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To require the Board of Governors of the Federal Reserve System, the 
 Board of Directors of the Federal Deposit Insurance Corporation, the 
      Comptroller of the Currency, and the National Credit Union 
Administration Board to jointly submit a report on trends in the use of 
  blockchain technology to tokenize traditional assets, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tokenization Report Act of 2024''.

SEC. 2. REPORT ON TRENDS IN TOKENIZATION OF TRADITIONAL ASSETS USING 
              BLOCKCHAIN TECHNOLOGY.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Board of Governors of the Federal Reserve 
System, the Federal Deposit Insurance Corporation, the Comptroller of 
the Currency, and the National Credit Union Administration Board shall 
jointly submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a report on trends in the use of blockchain 
technology to tokenize traditional assets.
    (b) Contents of Report.--The report required under subsection (a) 
shall include the following elements:
            (1) The potential benefits and risks of utilizing 
        blockchain networks for traditional asset tokenization, 
        including the impacts to settlement efficiency, cost, 
        counterparty risk, and any other impacts.
            (2) The critical differences between permissioned and 
        permissionless blockchain networks for traditional asset 
        tokenization.
            (3) The current state of blockchain interoperability and 
        integration capabilities across different networks and 
        platforms, and the effects on widespread adoption of such 
        capabilities.
            (4) Emerging global regulatory approaches to tokenized 
        traditional assets, including differential capital requirements 
        based on underlying technology.
            (5) Whether additional guidance or rules are necessary to 
        facilitate traditional asset tokenization.
            (6) How control features of blockchain networks impact the 
        ability of tokenized traditional assets to retain their 
        existing risk profile.
            (7) A summary of the legal permissibility and regulatory 
        requirements of the use of blockchain technology to tokenize 
        traditional assets.
    (c) Public Input.--The Board of Governors of the Federal Reserve 
System, the Federal Deposit Insurance Corporation, the Comptroller of 
the Currency, and the National Credit Union Administration Board shall 
collect public input to inform the drafting of the report required 
under subsection (a).
    (d) Blockchain Defined.--In this section, the term ``blockchain'' 
means any technology where data is--
            (1) shared across a network to create a ledger of verified 
        transactions or information among network participants;
            (2) linked using cryptography to maintain the integrity of 
        the ledger and to execute other functions; and
            (3) distributed among network participants in an automated 
        fashion to concurrently update network participants on the 
        state of the ledger and any other functions.
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