Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8278 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 8278

 To require certain supervisory agencies to assess their technological
                 capabilities, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 14, 2026

  Mr. Stutzman (for himself and Mr. Foster) introduced the following
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 To require certain supervisory agencies to assess their technological
                 capabilities, 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 ``Fostering the Use of Technology to
Uphold Regulatory Effectiveness in Supervision Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Banking regulators continue to examine and monitor
        depository institutions without sufficient access to real-time
        information.
            (2) Supervisory regulators should leverage technologies to
        more effectively carry out their duties.
            (3) When updating supervisory technology, risks surrounding
        technology procurement must be effectively managed.
            (4) Agencies' reliance on outdated technology can create
        vulnerabilities for the financial system, through--
                    (A) difficulties in collecting, compiling, and
                analyzing relevant information about risks and
                noncompliance at supervised firms;
                    (B) reliance on information that is inaccurate,
                incomplete, or not timely;
                    (C) reliance on limited and outdated tools for data
                analysis;
                    (D) difficulties in using data to identify risk
                trends;
                    (E) difficulties in producing accurate and timely
                reports;
                    (F) inadequacy of cybersecurity safeguards; and
                    (G) failure to detect illegal activities.
            (5) The rapid expansion of financial firms' use of
        artificial intelligence may generate opportunities to improve
        the financial system while also introducing a range of risks,
        making it essential that agencies be equipped with the
        technology, expertise, and skills needed to analyze these
        opportunities and potential risks.
            (6) While agencies assess their supervisory capabilities on
        an ongoing basis, it is imperative that there be a unified goal
        of enhancing supervisory technologies that ensure effective and
        sustainable oversight.

SEC. 3. TECHNOLOGICAL CAPABILITIES AND PROCUREMENT PRACTICES
              ASSESSMENT.

    (a) In General.--
            (1) Technological capabilities assessment.--Each covered
        agency shall, not later than 180 days after the date of the
        enactment of this section, assess how existing technologies
        used by the covered agency pose challenges to the covered
        agency in conducting adequate, real-time supervisory
        assessments of entities over which the covered agency has
        supervisory authority. Such technologies include, as
        applicable--
                    (A) core information technology infrastructure;
                    (B) technologies used to supervise entities;
                    (C) technologies for monitoring general market
                risks using reported data and external data; and
                    (D) technologies for data collection, storage,
                processing, and security.
            (2) Procurement practices assessment.--Each covered agency
        shall, not later than 180 days after the date of the enactment
        of this section--
                    (A) assess the procurement rules and protocols
                adhered to by such covered agency when such covered
                agency acquires or develops new technological systems;
                and
                    (B) identify any opportunities to further
                streamline procurement rules and protocols, including
                an assessment of the impact such rules or protocols
                have on the ability of the covered agency to test new
                technological systems, that are within the covered
                agency's authority to streamline.
    (b) Report.--Not later than 18 months after the completion of the
assessments required under subsection (a), and for every 5 years
thereafter, the covered agencies shall coordinate and 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, in
a manner that does not pose a risk to the integrity or security of any
technologies, systems, or capabilities of covered agencies, regulated
entities, or market participants, a report that includes, as
applicable, the following with respect to each covered agency:
            (1) A general overview of hardware and software used for
        information gathering and advanced analytics during supervision
        activities, including categories of technology purchased from
        vendors and developed by the covered agency or contractors of
        the covered agency.
            (2) A description of the procurement practices and
        protocols of the covered agency, including a description of--
                    (A) whether such processes are voluntarily adhered
                to or mandated; and
                    (B) any opportunities to further streamline
                procurement rules and protocols, including an
                assessment of the impact such rules or protocols have
                on the ability of the covered agency to test new
                technological systems.
            (3) A general overview of the portion of the workforce of
        the covered agency that is engaged materially in technology
        development within the covered agency, including--
                    (A) an overview of the ability of the covered
                agency to recruit and retain appropriate technology
                experts; and
                    (B) a description of the degree to which the
                covered agency relies on contractors to design,
                develop, or deploy technology and perform technology-
                related tasks.
            (4) A general description of the processes used by the
        covered agency to obtain information from entities supervised
        by the covered agency and any impediments thereto, including
        regulatory obstacles.
            (5) General information about market and technology trends
        and risks in the underlying regulated markets including,
        specific to the covered agency's jurisdiction--
                    (A) market developments influenced by the adoption
                of new technologies;
                    (B) the use of new technologies by supervised
                entities for compliance and risk management purposes;
                    (C) the impact of new technologies on the
                collection and analysis of data submitted to the
                covered agencies by supervised entities as required by
                regulation, including on data quality,
                interoperability, and standardization; and
                    (D) potential risks, including risks of illicit
                activity, related to new technologies.
            (6) A general description of the ways in which the covered
        agency shares information or system access with other covered
        agencies and any impediments thereto, including regulatory
        obstacles.
            (7) An estimate of the costs for supervised entities to
        modify systems to share data with covered agencies, as
        appropriate.
            (8) A general description of any plans of the covered
        agency to implement future upgrades to the technology it uses
        to supervise entities, including--
                    (A) the anticipated timeline for any planned
                upgrades;
                    (B) the costs of any planned upgrades;
                    (C) any impediments to procuring relevant
                technologies;
                    (D) plans for hiring and training individuals in
                connection with technological upgrades;
                    (E) any aspects of any planned upgrades that should
                be addressed on an interagency basis;
                    (F) any anticipated challenges and opportunities
                associated with entities supervised by the covered
                agency adapting to the covered agency's reporting
                process, including--
                            (i) estimates of transition costs; and
                            (ii) estimates of any potential cost
                        reductions; and
                    (G) as applicable, the covered agency's
                relationships with other covered agencies in their
                capacity as delegated examiners.
    (c) Covered Agency Defined.--In this section, the ``covered
agency'' means the Board of Governors of the Federal Reserve System,
the Bureau of Consumer Financial Protection, the Federal Deposit
Insurance Corporation, the Department of the Treasury, including the
Office of the Comptroller of the Currency and the Financial Crimes
Enforcement Network, the Federal Housing Finance Agency, and the
National Credit Union Administration.
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