(NAFB)--The House Agriculture Subcommittee on General Farm Commodities and Risk Management continued the process of gathering information and perspectives on the future of the Commodity Futures Trading Commission Tuesday. Congress is preparing to write legislation to reauthorize the agency as the statutory authorization expires at the end of the fiscal year. CFTC Commissioners Scott O’Malia and Mark Wetjen testified before members of the committee. Subcommittee Chairman K. Michael Conaway said Dodd-Frank fundamentally changed the regulatory agency as much as it sought to remake the financial markets. He said it’s important not to lose sight of the fact that regulatory actions have consequences. It’s critical for a healthy economy - he said - to weigh the costs and benefits of those actions.
Ranking Member David Scott said the passage of Dodd-Frank made the CFTC one of the most important regulators in the U.S. - if not the entire world. He noted the portion of the financial sector they oversee is enormous and growing daily. Scott said the hearing was important for reviewing the tasks CFTC has on its plate and to ensure they have the tools statutorily and monetarily to accomplish the job Congress has given them.
Tuesday’s hearing was the second on the future of the CFTC. The full committee met in May to gain perspectives from the market. A third hearing is taking place today (Wednesday) to learn more about the impact of the Commission’s actions on end-users.
The Commodity Futures Trading Commission is holding its own meeting on Thursday to discuss the Dodd-Frank Act. The CFTC will convene a meeting of its Agricultural Advisory Committee to talk about customer protection - but also to hear a presentation on trading of ethanol/Renewable Identification Numbers.