US HB3197

Establishes a permanent Advisory Committee under the Financial Stability Oversight Council to study market implications and vulnerabilities related to potential Chinese military aggression towards Taiwan

Advisory Committee membership includes 12 members: a SEC designee, a CFTC designee, and 10 Council-appointed members from capital markets participants (market makers, asset managers, exchanges, institutional investors) and China geopolitical risk experts

Requires the Advisory Committee to meet in person at least twice annually and conduct annual studies on Taiwan-related market risks, with public meetings to present recommendations (national security portions in closed session)

Mandates the Council issue an annual public report covering banking system safety, potential market losses, trading halt capacity, Chinese/Taiwanese U.S. listings impact, China's potential U.S. Treasury divestment, and total estimated economic costs

Report must include recommendations for improving market resilience, including government coordination strategies, trade halt testing, potential Chinese retaliatory actions, and regulator engagement with market participants