PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Financial Services.
Congressional Research Service
No official summary is available in the imported record yet.
People & committees
Rep. Garbarino, Andrew R. [R-NY-2] · R–NY
Legislative record
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Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 10, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-09-24 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Margin Eligibility Modernization Act would change which ownership securities traded outside stock exchanges qualify as “OTC margin stock,” a regulatory category related to securities credit. It would include any such security meeting a referenced “ready market” definition. The Federal Reserve would have 90 days after enactment to issue a rule, with an automatic interim change if it missed that deadline.
This Act may be cited as the Margin Eligibility Modernization Act.
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.
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
The bill would require the Federal Reserve Board to amend the regulatory definition of OTC margin stock within 90 days after enactment. Coverage would include any over-the-counter equity security—an ownership investment traded outside stock exchanges—that meets the “ready market” definition in the specified federal regulation. The bill does not reproduce that eligibility test.
(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.
If the Federal Reserve missed the 90-day deadline, the regulatory definition would automatically be treated as including the specified securities. This interim treatment would last until the required rule was issued.
(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.
Five years after the required rule was issued, the Federal Reserve would have to report on credit extended because of the rule and any associated risks to the financial system. The report would go to the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee. This reporting clock would start with issuance of the rule, rather than enactment.
(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.
The supplied official-actions snapshot, updated October 10, 2026, records introduction in the House and referral to the House Financial Services Committee on September 24, 2026.
Source snapshot updated 2026-10-10T08:05:27Z. 2026-09-24: Referred to the House Committee on Financial Services. 2026-09-24: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-09-24. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; member disclosures, committee reports, and conference materials were not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption, or preferential treatment warranting a separate finding was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Oct 10, 2026. How PlainBill uses AI