Rep. Byron Donalds files legislation to clarify ‘dealer’ meaning in federal securities rules

A measure introduced by Rep. Byron Donalds in the U.S. House is intended to establish a specific legal definition for ‘dealer’ within securities laws, as reported by the U.S. Congress.

Designated H.R.8328, the bill was submitted during the 2026 regular session of the 119th Congress on April 16, 2026. The summary here is based on the original bill document and contains clarifications to aid in understanding its content.

The proposal seeks to update the Securities Exchange Act of 1934 by refining the criteria for who qualifies as a “dealer.” Under this change, a dealer is defined as a person who assists customers in securities transactions, both by purchasing securities on their own behalf and by selling securities they previously acquired. It specifically carves out an exception for security-based swaps, unless a transaction involves parties not classified as eligible contract participants. The new provision would become effective 30 days post-enactment. Additionally, it provides mechanisms for certain legal cases and decisions to be vacated if they would have been influenced by this new definition at the time, contingent on specific scenarios.

Rep. Byron Donalds (Republican-FL-19th District) is the bill’s sole sponsor.

Throughout the current session, Rep. Donalds has introduced a total of 20 other bills.

Bills can originate in either the House or Senate in Congress—aside from tax measures, which must begin in the House. Upon introduction, measures are assigned to committees for analysis, public hearings, modification, and debate before they advance to a floor vote. If both chambers pass matching versions, the measure proceeds to the president for signature or veto. Congressional terms last two years, are numbered sequentially, and are organized into two yearly sessions. Congress maintains records of the legislative process and actions through Congress.gov.

Byron Donalds represents Florida, was born in Brooklyn, New York, on October 28, 1978, and graduated from Nazareth Regional High School in 1996. He attended Florida A&M University from 1996 through 1999, then earned a B.A. from Florida State University in 2002.

Donalds previously served in the Florida state House from 2016 through 2020 and was unsuccessful in his 2012 run for the 113th Congress. He won a seat as a Republican in the 117th Congress and was subsequently reelected for the following two terms.

All information in this report comes from the U.S. Congress. Access original source data here.