Legislation introduced by U.S. Rep. Marlin Stutzman (R-IN) to enhance regulatory agencies’ ability to conduct thorough supervision and ensure the safety of the financial system has unanimously passed the House Financial Services Committee.
The legislation, the Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision (FUTURES) Act, aims to modernize technology systems within the federal agencies responsible for regulating banks and credit unions while enhancing their capacity for supervision and oversight. Co-sponsored by U.S. Rep. Bill Foster (D-IL) the legislation, H.R. 8278, passed out of committee with a 52-0 vote.
“I am honored to see my legislation pass the House Financial Services Committee with unanimous bipartisan support,” Stutzman said. “The modernization of the regulatory technology our American financial systems rely on is essential. The FUTURES Act will help Congress better understand the red tape keeping our regulators in the past while our financial institutions race into the future.”
The legislation addresses the critical need for modernization by requiring federal regulatory agencies, including the Federal Reserve System, FDIC, OCC, FHFA, NCUA, and FinCEN to thorough assessment of their technology systems and to identify current deficiencies and areas for improvement, including technology plans, procurement practices, workforce impact, and information intake and analysis. Within 18 months of completing the assessments, and every five years after, the agencies will be required to submit reports to the House Financial Services Committee and the Senate Banking Committee that include findings, evaluations, and plans for upgrading technology systems and addressing anticipated challenges.
“The sudden collapse of Silicon Valley Bank demonstrated that threats to our financial system can move much faster than previously understood,” Foster said. “Today, artificial intelligence is accelerating those risks even further and raising the likelihood of AI-driven bank runs. Combined with social media, agentic communication and 24-hour banking, these technologies can amplify panic and destabilize institutions in minutes instead of hours or days. This bill is an important step to ensure our financial regulators have the tools they need to monitor, anticipate, and respond to these emerging, technology-driven threats.”