SILVER Act

New rules for precious metal depositories

If enacted, this bill would require derivatives clearing organizations to use clear, published rules to pick depositories that store precious metals for futures contracts. Precious metals are defined as gold, silver, platinum, and palladium. The bill would require a formal application process, objective selection factors (including geographic diversity, competition, risk management, storage costs, and systemic risk), and a public‑interest approval test. It would also require at least two qualifying depositories in each U.S. time zone and periodic assessments of ease of access for physical settlement. Depositories and clearing members would face new approval and compliance steps that could raise their costs, which might be passed to market participants.