# 119-hr-10553: Margin Eligibility Modernization Act

119-hr-10553, Margin Eligibility Modernization Act, is a 119th Congress bill sponsored by Rep. Garbarino, Andrew R. [R-NY-2] (R-NY); status introduced; PRIA reads it as touching household money (as of 2026-10-11).

- Canonical: https://policyrisk.com/legislation/119-hr-10553
- As of: 2026-10-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-10553
- Congress: 119
- Title: Margin Eligibility Modernization Act
- Status: introduced
- Introduced: 2026-09-24
- Sponsor: Rep. Garbarino, Andrew R. [R-NY-2] (R-NY)
- Cosponsors: 1
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-10-11

## Summary

**This bill would expand margin eligibility to more over-the-counter (OTC) equity securities that have a "ready market."** It would direct the Federal Reserve to amend Regulation T within 90 days and create an automatic inclusion rule if the Fed misses that deadline. - Investors and traders: More OTC stocks that meet the ready-market test would count as marginable, widening the set of equities people can borrow against and potentially boosting liquidity for those instruments. - Broker-dealers and clearing firms: Firms would need to update margin policies and systems to treat newly eligible OTC equities as margin securities. The bill also forces a temporary automatic inclusion if the Fed does not act within 90 days. - Federal Reserve and congressional oversight: After the rule is issued a five-year period begins during which the Fed must report to the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee on the credit extended because of the rule and any risks to the financial system.

## Cosponsors (1)

- Rep. Lawler, Michael [R-NY-17] (R-NY), 2026-10-09T00:00:00.000Z

## Provisions PRIA read

- More margin for OTC stock investors: benefit, medium. This bill would make many over-the-counter (OTC) equity stocks count as margin-eligible if they have a "ready market" as defined in federal rules (17 CFR 240.15c3-1(c)(11)). The Federal Reserve would have to issue a rule changing Regulation T (12 CFR 220.2) within 90 days of enactment. If the Fed d…
- Five-year Fed report on margin rule: benefit, low. This bill would require the Federal Reserve to send a report to two congressional committees five years after the new margin rule is issued. The report would assess the credit extended because of that rule and any risks to the financial system. The report must go to the House Committee on Financial…

## Related bills

- 119-hr-6644: 21st Century ROAD to Housing Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-6955: Main Street Capital Access Act
- 119-hr-1229: United States-Israel Defense Partnership Act of 2025

## Sources
- [119-hr-10553 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/10553)

## Related
- [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-6955: Main Street Capital Access Act](https://policyrisk.com/legislation/119-hr-6955)
- [119-hr-1229: United States-Israel Defense Partnership Act of 2025](https://policyrisk.com/legislation/119-hr-1229)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-10553 (as of 2026-10-11).