McHenry Leads Bipartisan, Bicameral Letter to Regulators Urging Timely Implementation of the Financial Data Transparency Act

McHenry Leads Bipartisan, Bicameral Letter to Regulators Urging Timely Implementation of the Financial Data Transparency Act
FDTA implementation will improve the accessibility, uniformity, and usefulness of federal financial data

Washington, May 16, 2024 -

The lawmakers emphasize how doing so will improve the accessibility, uniformity, and usefulness of federal financial data for the public and facilitate the use of advanced technologies like artificial intelligence (AI). This will lead to increased transparency and greater market efficiencies.

"Dear Secretary Yellen, Chairman Gruenberg, Acting Comptroller Hsu, Chairman Harper, Chair Powell, Director Thompson, Chairman Gensler, and Director Chopra:

"We write regarding your respective agencies' obligations under the Financial Data Transparency Act (FDTA), enacted as Title LVIII of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, and to urge you to finalize your rulemakings in the timeline set forth by the FDTA.

"Implementing the FDTA as required by Congress will alleviate regulatory reporting burdens and will improve the accessibility, uniformity, and usefulness of federal financial data for the public. Adopting open-source data standards, common identifiers, while at the same time implementing features like machine readability, search capability, and interoperability across financial regulators will be a major step towards harmonizing regulatory reporting. It will also improve the collection and dissemination of federal financial data. This will spur innovation and facilitate the responsible use of technology to fully utilize the publicly available data your agencies publish.

"Recent technological developments further necessitate your agencies' full implementation of the FDTA. Private sector market participants, academics, and individuals using advanced technologies, such as artificial intelligence, are already able to analyze government documents and generate insights without the need for manual data entry. Publishing machine-readable data in a consistent format will facilitate the use of these technologies, leading to increased transparency and greater market efficiencies.

"The inclusion of the FDTA on your respective rulemaking agendas is a positive step. We encourage you to complete the rulemaking process as required by the FDTA. Implementation of the FDTA is a bipartisan and bicameral priority. We appreciate your prompt attention to this important matter."

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