Federal

Social Media Bank Run Act

Source: Congress.gov · 576 words in original text

What This Bill Does

This bill changes the Financial Stability Act of 2010 to require the Financial Stability Oversight Council (a government group that watches for threats to the nation's financial system) to monitor social media platforms. The council must look for signs of a bank run (when lots of people withdraw money from banks at once) or financial panic that could threaten the country's financial stability.

Who It Affects

The Financial Stability Oversight Council is directly impacted by this bill. The bill also affects social media platforms as defined in the legislation.

Key Provisions

• The Financial Stability Oversight Council must monitor social media platforms for any indicator of a potential bank run or financial panic at a level that could threaten U.S. financial stability (Sec. 2) • The bill defines "social media platform" as an internet-based website or online application that allows people to create accounts, generate and share user-created content, and participate in social networking with other users (Sec. 2) • The Financial Stability Oversight Council must conduct a study to determine if content on social media platforms causes financial panic and bank runs (Sec. 3) • The council must submit a report to Congress with all findings and determinations from the study (Sec. 3)

What Changes

If this becomes law, the Financial Stability Oversight Council gains a new responsibility to watch social media platforms for signs of financial crisis. The council will also conduct research on whether social media content causes financial panic and bank runs, and must report their findings to Congress.

Important Definitions

Social media platform: An internet website or online application where people can create accounts or profiles, create and share user-generated content (content created by regular users), view other users' content, and interact socially with other users.

Effective Date

Not specified in bill text

I 118TH CONGRESS 1ST SESSION H. R. 2396 To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to monitor social media platforms for indica- tors of a bank run or financial panic, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 29, 2023 Mr. TORRES of New York introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to monitor so- cial media platforms for indicators of a bank run or financial panic, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Social Media Bank 4 Run Act’’. 5 VerDate Sep 11 2014 23:53 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2396.IH H2396 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2396 IH SEC. 2. MONITORING SOCIAL MEDIA FOR FINANCIAL IN- 1 STABILITY. 2 The Financial Stability Act of 2010 (12 U.S.C. 5311 3 et seq.) is amended— 4 (1) in section 102(a), by adding at the end the 5 following: 6 ‘‘(8) SOCIAL MEDIA PLATFORM.—The term ‘so- 7 cial media platform’ means a platform provided over 8 the internet (including a website or online applica- 9 tion) that— 10 ‘‘(A) permits a person to create an account 11 or a profile for the purpose of generating, shar- 12 ing, and viewing user-generated content 13 through such account or profile; 14 ‘‘(B) enables users to generate content and 15 share such content so that such content can be 16 viewed by other users of the platform; 17 ‘‘(C) enables users to view content gen- 18 erated by other users of the platform; and 19 ‘‘(D) enables users to participate in social 20 networking with other users of the platform.’’; 21 and 22 (2) in section 112(a)(2)— 23 (A) in subparagraph (M)(ii) by striking 24 ‘‘and’’ at the end; 25 VerDate Sep 11 2014 23:53 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2396.IH H2396 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2396 IH (B) in subparagraph (N)(vi)(III) by strik- 1 ing the period and inserting ‘‘; and’’; and 2 (C) by adding at the end the following: 3 ‘‘(O) monitor social media platforms for 4 any indicator of— 5 ‘‘(i) a potential bank run; or 6 ‘‘(ii) financial panic at a level that po- 7 tentially threatens the financial stability of 8 the United States.’’. 9 SEC. 3. STUDY ON THE EFFECTS OF SOCIAL MEDIA ON FI- 10 NANCIAL INSTABILITY. 11 (a) IN GENERAL.—The Financial Stability Oversight 12 Council shall conduct a study to determine if the content 13 on social media platforms effects financial panic and bank 14 runs. 15 (b) REPORT.—The Council shall submit a report to 16 the Congress containing all findings and determinations 17 made in carrying out the study required under subsection 18 (a). 19 (c) SOCIAL MEDIA PLATFORM DEFINED.—The term 20 ‘‘social media platform’’ shall have the meaning given to 21 such term in section 102(a) of the Financial Stability Act 22 of 2010 (12 U.S.C. 5311). 23 Æ VerDate Sep 11 2014 23:53 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2396.IH H2396 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.