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H.R. 9717House119th Congress (2025-2027)In Committee

Customer Property Protection Act

Sponsored by Shri ThanedarRep. Shri Thanedar (D-MI)
Introduced July 15, 2026

AI-Generated Summary

Updated July 19, 2026 at 1:51 PM UTC

The Customer Property Protection Act changes the Commodity Exchange Act so that, when a commodity broker goes bankrupt, certain of the broker’s own assets can be treated as customer property. This is meant to help protect public customers by giving them a claim on the broker’s cash, securities, inventory, and trading accounts if the broker’s other customer assets aren’t enough to cover what the customers are owed.

Key Provisions

  • Adds a new paragraph (6) to the law stating that a broker’s cash, securities, inventory, and trading accounts are considered customer property in bankruptcy, but only to the extent needed to satisfy customers’ net equity claims.
  • Specifies that any existing security interests, contractual offsets, or netting rights of other creditors still apply to those assets.
  • Leaves the definition of “public customers” to be set by the Commodity Futures Trading Commission through rules or regulations.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Agriculture.

Agriculture Committee

July 15, 2026

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HouseIntro Referral

Introduced in House

July 15, 2026

HouseIntro Referral

Referred to the House Committee on Agriculture.

Agriculture Committee

July 15, 2026

Bill Text

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Introduced in HouseIssued July 15, 2026

I

119th CONGRESS

2d Session

H. R. 9717

IN THE HOUSE OF REPRESENTATIVES

July 15, 2026

Mr. Thanedar (for himself and Mrs. Cammack) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To amend the Commodity Exchange Act to authorize certain treatment of customer property during commodity broker bankruptcy.

1.

Short title

This Act may be cited as the Customer Property Protection Act.

2.

Protecting customer property during commodity broker bankruptcy

Section 20(a) of the Commodity Exchange Act (7 U.S.C. 24(a)) is amended—

(1)

by striking and at the end of paragraph (4);

(2)

by striking the period at the end of paragraph (5) and inserting ; and; and

(3)

by adding at the end the following:

(6)

that cash, securities, or other property of the estate of a commodity broker, including the trading or operating accounts of the commodity broker and commodities held in inventory by the commodity broker, shall, subject to any otherwise unavoidable security interest, or otherwise unavoidable contractual offset or netting rights of creditors (including rights set forth in a rule or bylaw of a derivatives clearing organization or a clearing agency) in respect of such property, be included in customer property, but only to the extent that the property that is otherwise customer property is insufficient to satisfy the net equity claims of public customers (as such term may be defined by the Commission by rule or regulation) of the commodity broker.

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