Margin Eligibility Modernization Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10553 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                               H. R. 10553

  To require the Board of Governors of the Federal Reserve System to 
  amend Regulation T to include in the definition of an ``OTC margin 
 stock'' certain equity securities for which there is a ready market, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2026

Mr. Garbarino 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 to 
  amend Regulation T to include in the definition of an ``OTC margin 
 stock'' certain equity securities for which there is a ready market, 
                        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 ``Margin Eligibility Modernization 
Act''.

SEC. 2. OTC MARGIN STOCK RULEMAKING.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Board of Governors of the Federal Reserve System shall 
issue a rule to amend section 220.2 of title 12, Code of Federal 
Regulations, to revise the definition of ``OTC margin stock'' to 
include any equity security traded over the counter for which there is 
a ready market, as defined in section 240.15c3-1(c)(11) of title 17, 
Code of Federal Regulations.
    (b) Effect of Failure To Issue Rule.--If the Board of Governors of 
the Federal Reserve System does not issue the rule required under 
subsection (a) before the end of the 90-day period described in 
subsection (a), until such rule is issued, the definition of ``OTC 
margin stock'' under section 220.2 of title 12, Code of Federal 
Regulations, is deemed to include any equity security traded over the 
counter for which there is a ready market, as defined in section 
240.15c3-1(c)(11) of title 17, Code of Federal Regulations.
    (c) Report to Congress.--At the end of the 5-year period beginning 
on the date the rule required under subsection (a) is issued, the Board 
of Governors of the Federal Reserve System shall 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 
assessing the credit extended by reason of such rule and any associated 
risks to the financial system.
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