Customer Property Protection Act

This bill, known as the Customer Property Protection Act, amends the Commodity Exchange Act to strengthen protections for customers in the event of a commodity broker's bankruptcy. It modifies Section 20(a) to expand the definition of customer property that can be used to satisfy customer claims. Specifically, the bill mandates that certain assets from the commodity broker's estate, including their cash, securities, trading accounts, and inventory, be included as customer property. This inclusion is contingent upon the existing customer property being insufficient to cover the net equity claims of public customers. However, this expanded definition is subject to any otherwise unavoidable security interests or contractual offset and netting rights held by creditors. The aim is to provide an additional layer of protection for public customers, ensuring their claims are met by a broader pool of assets when primary customer funds are depleted.