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Bill

S 4621

SILVER Act

119th Congress Introduced by Mike Crapo and 3 co-sponsors

The bill requires SIDCOs to diversify precious metals depositories geographically (at least two per major US time zones) to boost liquidity, resilience, and competition.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4621

Overview

  • Bill: S.4621 (Silver Act)
  • Session: 119th Congress, 2nd Session
  • Purpose: Amend the Commodity Exchange Act to reduce systemic risk related to precious metals depositories, increase geographic diversity and competition in precious metals storage, and enhance market resilience and access.
  • Sponsor(s): Sen. Jim Risch (primary) and Sen. Catherine Cortez Masto (co-sponsor)

Main purpose and intent

  • Address geographic concentration of precious metals storage near New York City that can create systemic risk and higher costs for market participants.
  • Promote the expansion and diversification of storage depositories for gold, silver, platinum, and palladium used in conjunction with futures contracts.
  • Establish a transparent, criteria-driven process for selecting depositories by systemically important derivatives clearing organizations (SIDCOs), with emphasis on geographic spread, competition, liquidity, and cost efficiency.
  • Improve market resilience and access by increasing the number and distribution of compliant storage facilities.

Key provisions and changes

  • Findings (Section 2):

    • Highlights risks from geographic concentration and the potential benefits of adding storage vaults in diverse locations, near hubs of activity and interstate transport networks.
    • Emphasizes the importance of liquidity, market confidence, and cost efficiency.

  • Precious metals depositories in conjunction with futures contracts (Section 3):

    • Adds “geographic concentration” and related risks to the considerations when evaluating depositories as part of futures-related storage.
    • Creates a new approval framework for depositories:
    • A designated systemically important derivatives clearing organization (SIDCO) must develop transparent criteria to evaluate and select precious metals depositories used with contracts for future delivery.
    • SIDCOs must establish a formal applications process for depositories seeking selection.
    • Selection factors for depositories:
    • Include geographic diversity, competition, risk management, storage costs, and systemic risk implications.
    • Approve new depositories in the public interest, balancing diversity, liquidity, resilience, access, competition, and cost, while maintaining security and quality standards.
    • Geographic requirements:
    • SIDCOs must select at least two depositories in each of the major U.S. time zones (Eastern, Central, Mountain, Pacific), ensuring broad geographic coverage.
    • Access and resilience obligations:
    • Periodic assessment of ease of access to physically settled precious metals across the U.S. to ensure system availability and resiliency.
    • Additional: The bill clarifies that the role of a metal service provider (e.g., a depository) may be considered in the approval process for a SIDCO.

Who/what is affected

  • Systemically important derivatives clearing organizations (SIDCOs) that clear contracts for the physical delivery of precious metals.
  • Precious metals depositories seeking inclusion in a SIDCO’s depository network.
  • Market participants who rely on physically settled precious metals stored in depositories (e.g., traders, futures contract counterparties, investors).
  • The broader precious metals storage market, potentially increasing competition and reducing storage costs through geographic diversification.

Procedural and timeline aspects

  • Status: Introduced May 21, 2026; referred to the Senate Committee on Agriculture, Nutrition, and Forestry.
  • The act sets forth structural changes to how depositories are evaluated and approved, with a focus on ongoing criteria, application processes, and geographic requirements; it does not itself create a new regulatory agency but directs SIDCOs to adopt transparent processes and periodic assessments.

Potential impact considerations

  • Pros: Increased liquidity, greater market resilience, lower storage costs due to competition, and better access for market participants nationwide.
  • Cons/risks: Implementation would require SIDCOs to establish new evaluation criteria and processes, potential transitional costs for depositories, and ongoing regulatory oversight to ensure standards are met.

Compiled from official sources — confirm details with the bill’s official record.

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