On June 17th, the Senate Agriculture Committee held a hearing in Committee Ranking Member John Boozman’s home state of Arkansas entitled, “2023 Farm Bill: Perspectives from the Natural State.” ACSA would like to thank American Cotton Producers (ACP) Chairman Nathan Reed for sharing his perspectives on important topics going into the next Farm Bill, including supply chains.
On June 15th, the House Agriculture Committee held a hearing entitled “The Role of Climate Research in Supporting Ag Resiliency.” Please see link below for key takeaways provided by Delta Strategy Group.
On June 3rd, the Environmental Protection Agency finalized the blending requirements under the nation’s biofuel mandate. More information on the Renewable Volume Obligations under the Renewable Fuels Standard for 2020, 2021, and 2022 can be found in the link below.
On June 2nd, the Commodity Futures Trading Commission (CFTC) held a roundtable titled “Voluntary Carbon Markets Convening.”
On May 27th, Delta Strategy Group created a summary of the substantive comments regarding FTX’s proposal to amend its DCO registration to permit it to offer margin on cryptocurrency futures products in its non-intermediated model.
On May 25th, the Commodity Futures Trading Commission staff held a roundtable to consider the implication of a non-intermediated direct clearing model for digital asset derivatives. See the summary below for more information.
On May 24th, PoliticoPro’s newsletter titled “Cypto concerns come to ag” highlighted some of the concerns raised by the American Cotton Shippers Association and other agricultural groups regarding the recently filed proposal filed by LedgerX LLC d.b.a. FTX US Derivatives (FTX).
On May 10, ACSA submitted its comments in response to the U.S. Commodity Futures Trading Commission’s request for public comments on LedgerX, LLC d.b.a. FTX U.S. Derivatives’ (“FTX”) request for amended Derivatives Clearing Organization (“DCO”) Registration Order.
On May 12, the House Transportation Committee Subcommittee on Railroads, Pipelines, and Hazardous Materials held a hearing entitled “Board Member Views on the Surface Transportation Board (STB) Reauthorization.”
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.