S.Amdt. 3381

SA 3381. Mr. McCORMICK submitted an amendment intended to be proposed
by him to the bill S. 2296, to authorize appropriations for fiscal year
2026 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle D of title XII, add the following:

SEC. 1248. ADVISORY COMMITTEE ON ECONOMIC FALLOUT FROM
CHINESE MILITARY AGGRESSION TOWARD TAIWAN.

Section 111 of the Financial Stability Act of 2010 (12
U.S.C. 5321) is amended by adding at the end the following:
``(k) Advisory Committee.--
``(1) Establishment.--There is established an advisory
committee, to be known as the `Financial Stability Oversight
Council Advisory Committee on Economic Fallout From Chinese
Military Aggression Toward Taiwan' (in this section referred
to as the `Advisory Committee'), to--
``(A) study and report on the market implications and
vulnerabilities related to the military aggression of the
People's Republic of China toward Taiwan; and
``(B) open lines of communication between policymakers,
government agencies, and capital market constituents to
prepare for a potential response to, and to mitigate economic
strain and market volatility related to, such aggression.
``(2) Members.--
``(A) In general.--The Advisory Committee shall consist
of--
``(i) a designee of the Commission;
``(ii) a designee of the Commodity Futures Trading
Commission; and
``(iii) 10 members to be appointed by the Council from
among persons who are--

``(I) capital markets participants, including market
makers, asset managers, exchanges, and institutional
investors; or
``(II) experts on geopolitical risk related to the People's
Republic of China.

``(B) Chair.--The Chair of the Advisory Committee shall be
a market maker appointed under subparagraph (A)(iii).
``(3) Meetings.--The Advisory Committee shall meet in
person at least 2 times per year, with additional meetings at
the call of the Chair.
``(4) Annual study and report on the recommendations of the
advisory committee.--The Advisory Committee shall, annually--
``(A) carry out a study on the market implications and
vulnerabilities related to the military aggression of the
People's Republic of China toward Taiwan;
``(B) develop recommendations and supporting analysis based
on the results of the study; and
``(C) hold a public meeting to present the recommendations
and analysis to the Council, but with any portions of such
recommendations and analysis that implicate national security
concerns presented in a closed session.
``(5) Permanent status.--The termination provision under
section 1013 of title 5, United States Code, shall not apply
to the Advisory Committee.
``(l) Annual Report.--The Council shall issue an annual
public report, after analyzing the recommendations and
analysis of the Advisory Committee provided under subsection
(k)(4), detailing the following:
``(1) Market vulnerabilities related to the military
aggression of the People's Republic of China toward Taiwan,
including--
``(A) the safety and soundness of the United States banking
and financial systems;
``(B) market impact and potential losses faced by United
States and global markets;
``(C) the capacity of United States markets to deal with
extreme volatility that could result from the aggression,
including trading halts such as circuit breakers and other
tools for managing liquidity;
``(D) the impact on Chinese and Taiwanese securities listed
on exchanges in the United States;
``(E) the likelihood, and potential impact of, the People's
Republic of China reducing, or eliminating, its holdings in
obligations issued by the United States; and
``(F) the estimated total costs to the United States
economy from such aggression.
``(2) Recommendations and action items for regulators to
make United States capital markets more resilient against
market shocks, volatility, and dislocation described under
paragraph (1), including with respect to--
``(A) the United States Government's coordination and
response;
``(B) ideas for government action to limit the market
impacts of a blockade or invasion of Taiwan by the People's
Republic of China;
``(C) potential retaliatory actions by the Government of
the People's Republic of China and the potential response of
the United States to those actions;
``(D) collaboration and testing of trade halt rules such as
circuit breakers across markets; and
``(E) avenues for further regulator engagement with capital
markets participants.''.
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