CFTC Reauthorization

Today, the House Ag Committee held a business meeting to markup H.R. 4895, to reauthorize the Commodity Futures Trading Commission (CFTC or Commission).  The Committee reported the bill favorably to the House by a voice vote after adopting a manager’s amendment that makes few changes to the underlying bill.  At this point, it appears that the bill may be considered on the House floor in the near future.  The Senate is in the process of drafting its own version of the legislation. 

Some noteworthy sections in the bill include:

• Grants the Commission the authority to adopt rules, after notice and comment, to safeguard proprietary information it obtains or receives and subsequently may share. (Section 114)
• For contracts listed on DCMs or SEFs that reference a digital commodity available on a cash market, the bill directs the Commission to adopt rules detailing the content and availability of trade and trader data and other information a DCM/SEF must be able to access from referenced cash markets and data sources. (Section 109)
• Makes amendments to the administration of SEFs. (Section 111)
• Directs the Commission to establish and maintain research, development, demonstration, and information programs that: (a) facilitate the Commission’s understanding of emerging technologies, (b) provide an environment where emerging technologies may be explored; and (c) identify areas where the Commission should adapt technological advancements. (Section 118)
• Establishes an Office of the Chief Economist to serve as an economic advisor to the Commission and perform functions such as economic analysis, regulatory cost-benefit analysis, and research. (Section 106)
• Exempts qualified charitable organizations from regulation as commodity pool operators. (Section 108)
• Expands the Commission’s fraud and manipulation authority to activities outside the U.S. that have or would have a reasonably foreseeable substantial effect within the U.S. (Section 112)