Customer Property Protection Act

Sponsor: Shri Thanedar (Democratic-MI)July 15, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Agriculture.

Helps customers recover more of their money if their commodity broker goes bankrupt.

This bill would change how customer funds are handled when a commodity broker goes out of business. It would allow the broker's own business assets to be used to pay back customers if the dedicated customer funds aren't enough. This aims to give customers a better chance of getting their investments back during a bankruptcy.

What Would Change

Today, when a commodity broker goes bankrupt, customers rely on a specific pool of "customer property" to get their money back. If that pool is insufficient, customers may lose some of their investments. After this bill, the broker's own business assets could be added to that customer property pool if needed to fully repay customers. These assets include their cash, securities, and trading accounts.

Key Provisions

Lets assets from a bankrupt commodity broker's own business be used to pay back customers.
Clarifies that a broker's own cash, securities, and trading accounts could be included in customer property during bankruptcy.
Allows a broker's inventory of commodities to be used to cover customer losses if needed.
Ensures these additional assets are only used if the original customer property isn't enough to pay back public customers.
Maintains existing rights for other creditors, like those with security interests or certain contractual agreements.

View on Congress.gov

HR 9717 · 119th Congress · July 15, 2026 · AI Summary by gemini-2.5-flash · 10/10

Customer Property Protection Act

What Would Change

Key Provisions

Lobbying Activity