Technical corrections only. The changes between v3 and v4 reflect the bill's procedural progression from the House to the Senate, including updated legislative status and attestation. No substantive policy changes were made.
PROTECT Taiwan Act
- Sponsor
- Rep. Lucas, Frank D. [R-OK-3]
- Committees
- Foreign Relations Committee (primary)
- Last action
- Feb 11, 2026
Bottom line
The bill mandates conditional U.S. efforts to exclude PRC representatives from major international financial organizations if Taiwan faces threats from China.
What it actually does
This bill directs key U.S. financial regulators to seek the exclusion of representatives from the People's Republic of China (PRC) from several international banking organizations. This action is triggered if the President informs Congress of a threat to Taiwan's security or economic system resulting from PRC actions. The policy includes a presidential waiver authority and a sunset clause.
Proponents argue
Supporters argue that this bill provides a powerful new tool to deter potential PRC aggression against Taiwan by threatening significant financial and diplomatic isolation. They contend that leveraging the U.S.'s influence in global financial bodies will impose substantial costs on Beijing, thereby strengthening Taiwan's security and upholding U.S. interests in the Indo-Pacific.
Opponents contend
Critics might contend that this policy risks destabilizing global financial cooperation and could provoke an escalatory response from the PRC rather than deterring it. They may argue that isolating a major global economy from key financial forums could lead to fragmentation of the international financial system and create new challenges for managing systemic risks, potentially harming U.S. and global economic interests.
The bill is very short and clearly written, making it highly accessible for a reader to understand its core provisions quickly.
Section 1
Short Title
This section establishes the official short title for the Act as the 'Pressure Regulatory Organizations To End Chinese Threats to Taiwan Act' or the 'PROTECT Taiwan Act.' This provides a concise and memorable name for the legislation, clearly communicating its primary purpose and making it easier for the public and policymakers to reference.
Supporters argue
Proponents argue that a clear and impactful short title like 'PROTECT Taiwan Act' effectively communicates the bill's intent and galvanizes support for its objectives.
Critics contend
No specific opposition is typically raised against the short title itself, as it is a standard legislative practice.
Tradeoffs
None.
Section 2(a)
Conditional Exclusion of PRC from Banking Organizations
This provision mandates that if the President determines the People's Republic of China (PRC) poses a threat to Taiwan's security or economic system, the U.S. policy will be to seek to exclude PRC representatives from six specified international financial organizations. These organizations include the Group of Twenty (G20), the Bank for International Settlements, the Financial Stability Board, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, and the International Organization of Securities Commissions.
Section 2(b)
Directive to Financial Regulators for Policy Advancement
This section directs the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and the Securities and Exchange Commission to take all necessary steps to advance the policy of excluding PRC representatives from the specified banking organizations. This ensures that the U.S. government has clear mandates to implement the policy once the presidential determination regarding threats to Taiwan is made, leveraging the influence of its financial agencies.
Section 2(c)
Presidential Waiver Authority
This section grants the President the authority to waive the application of the exclusion policy with respect to any of the specified international financial organizations. Such a waiver can be issued if the President determines it is in the national interest of the United States, provided a report explaining the reasons for the waiver is submitted to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs.
Section 2(d)
Sunset Clause
This section stipulates that the entire Act and its requirements will cease to have force or effect on the earlier of two dates: either five years after the date of its enactment, or 30 days after the President notifies Congress that the termination of the Act is in the national interest of the United States. This ensures a defined lifespan for the policy, allowing for future reassessment.