On July 25, 2024, Center for American Progress Senior Director of Financial Regulation Alexandra Thornton testified before the House Agriculture Committee’s Subcommittee on Commodity Markets, Digital Assets, and Rural Development at a hearing titled, “Reauthorization of the CFTC: Stakeholder Perspectives.”
Thornton testified that the Commodity Futures Trading Commission (CFTC) should be reauthorized, as it plays a central role in oversight of the physical commodities markets—which are essential to the U.S. economy—and complex financial products known as swaps, which played a role in the 2007-2008 financial crisis. The CFTC oversees 41 registered entities, 10 registered derivatives clearing organizations, several futures industry self-regulatory organizations, and the registration and compliance of thousands of derivatives market participants. However, due to inadequate budget and staffing and a significant increase in the size and complexity of the markets it oversees, the agency is not fulfilling its existing duties adequately. Because of this, Thornton strongly discouraged the committee from expanding the agency’s authority beyond its current expertise and jurisdiction. In particular, Thornton cautioned against new authorities relating to crypto assets and voluntary carbon credits.
Click here to read the author’s testimony.