House Ag Committee Holds FTX Hearing

On May 12th, the House Agriculture Committee held a hearing on “Changing Market Roles: The FTX Proposal and Trends in New Clearinghouse Models.” Committee Chairman David Scott (D-GA) said that he had serious concerns about the risks the FTX proposal would pose to derivatives markets’ primary functions of price discovery and risk hedging. Several members on both sides of the aisle voiced concerns that FTX’s proposal would lead to either FTX or other exchanges offering a similar model for traditional ag commodities such as cotton which would be problematic for commercial hedges. CME Group CEO Terry Duffy said that, if the Commodity Futures Trading Committee (CFTC) approves this proposal for FTX, he will have no choice but to begin offering similar lower-cost products with less risk controls for traditional markets to remain competitive. Duffy said that the CFTC should approach this issue through a CFTC rulemaking process, not through the approval of a single proposal.

More here.

More Advocacy Issues

Ag Trade Groups Urge Action on Port Labor Dispute

December 20^th, 2024

Agricultural trade groups, including the American Cotton Shippers Association, have urged President Biden and President-elect Trump to address labor disputes at East and Gulf Coast ports. In letters sent yesterday, the group highlighted the urgency of a new agreement between the International Longshoremen’s Association and the United States Maritime Alliance before the contract expires on […]

ACSA Update: The Week Ahead

December 16^th, 2024

Please use the link below for a glance at the upcoming events for the week of December 16. Document here.

Port Strike Updates

December 13^th, 2024

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement to extend the Master Contract until January 15, 2025. Late yesterday, President-elect Trump posted a statement, voicing his support for the ILA’s position on automation. Post here. The ILA posted the statement on its Facebook page. Statement here. The […]

Joint Coalition Letter to ILA & USMX

December 6^th, 2024

The American Cotton Shippers Association, along with over 260 local, state, and federal trade associations, signed onto a letter urging the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to resume contract negotiations. Letter here.

CBP Update Isotopic Testing Guidance

November 13^th, 2024

Last week, the Customs Border Protection (CBP) released updated guidance on isotopic testing, as the agency seeks to find more efficient mechanisms for determining the origin of cotton within U.S. textile imports. The document states “… CBP is enhancing its isotopic testing capabilities at three of its laboratories. As a result of these efforts, CBP […]

Briefing on Hurricane Helene

October 29^th, 2024

On October 28, the United States Department of Agriculture (USDA) held a briefing on the coordinated inter-agency response to the agricultural impact of Hurricane Helene. See below for takeaways, discussion points, and other details. More here.