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This bill would treat securities issued by the International Development Association, which is part of the World Bank group, the same way U.S. law already treats securities from other multilateral development banks. In simple terms, it would give these securities an exemption from certain U.S. securities rules, while still allowing the Securities and Exchange Commission to require reports and step in if needed. The change would take effect 30 days after the bill becomes law, unless the Treasury Department reports that the International Development Association is helping a country that the State Department has said repeatedly supports terrorism.
- The bill adds a new rule saying that securities issued or guaranteed by the International Development Association are exempt from parts of the Securities Act of 1933 and the Securities Exchange Act of 1934.
- The organization would still have to file reports with the Securities and Exchange Commission if the SEC decides those reports are needed to protect investors or serve the public interest.
- The SEC, working with the National Advisory Council on International Monetary and Financial Problems, could suspend this exemption for any or all of the organization’s securities if it chooses.
- The bill would not take effect if the Treasury Secretary reports before the effective date that the International Development Association is providing financial help to a government the United States has formally identified as a repeated supporter of international terrorism.
Official Summaries
Aligning SEC Regulations for the World Bank's International Development Association Act
This bill exempts from securities regulations any securities issued by the International Development Association (IDA) of the World Bank. The association provides loans and grants to developing countries. The Securities and Exchange Commission may suspend this exemption at any time.
The bill does not apply if, before the bill's date of enactment, the Department of the Treasury reports that IDA is providing financial support to a country whose government has repeatedly provided support for acts of international terrorism, as determined by the Department of State.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1764 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
1st Session
H. R. 1764
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 22, 2025
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To accord securities issued by the International Development
Association the same exemption from the securities laws that applies to
the securities of other multilateral development banks in which the
United States is a member.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Aligning SEC Regulations for the
World Bank's International Development Association Act''.
SEC. 2. EXEMPTION OF SECURITIES OF THE INTERNATIONAL DEVELOPMENT
ASSOCIATION FROM THE SECURITIES LAWS.
(a) In General.--The International Development Association Act (22
U.S.C. 284 et seq.) is amended by adding at the end the following:
``SEC. 33. EXEMPTION OF SECURITIES OF THE INTERNATIONAL DEVELOPMENT
ASSOCIATION FROM THE SECURITIES LAWS.
``(a) Exemption From Securities Laws; Reports to Securities and
Exchange Commission.--Any securities issued by the Association
(including any guaranty by the Association, whether or not limited in
scope) and any securities guaranteed by the Association as to both
principal and interest shall be deemed to be exempted securities within
the meaning of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C.
77c(a)(2)) and section 3(a)(12) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(12)). The Association shall file with the Securities
and Exchange Commission such annual and other reports with regard to
such securities as the Commission shall determine to be appropriate in
view of the special character of the Association and its operations and
necessary in the public interest or for the protection of investors.
``(b) Authority of Securities and Exchange Commission to Suspend
Exemption; Reports to Congress.--The Securities and Exchange
Commission, acting in consultation with the National Advisory Council
on International Monetary and Financial Problems, is authorized to
suspend the provisions of subsection (a) of this section at any time as
to any or all securities issued or guaranteed by the Association during
the period of such suspension. The Commission shall include in its
annual reports to the Congress such information as it shall deem
advisable with regard to the operations and effect of this section.''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect 30 days after the date of enactment of this Act.
(2) Exception.--Notwithstanding paragraph (1), the
amendment made by subsection (a) shall not take effect if,
before the effective date described under paragraph (1), the
Secretary of the Treasury reports to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate that the
International Development Association is providing financial
assistance to any country the government of which the Secretary
of State has determined, for purposes of section 6(j) of the
Export Administration Act of 1979, section 620A of the Foreign
Assistance Act of 1961, or section 40 of the Arms Export
Control Act, to be a government that has repeatedly provided
support for acts of international terrorism.
Passed the House of Representatives July 21, 2025.
Attest:
KEVIN F. MCCUMBER,
Clerk.