House Agriculture Committee Meeting on CFTC Reauthorization
House Agriculture Committee
“Business Meeting – Reauthorization of the Commodity Futures Trading Commission”
Wednesday, October 30, 2019
Bills Considered
Opening Statements
Chairman Colin Peterson (D-Minn.)
In his opening statement, Peterson praised Ranking Member Conaway for his willingness to engage in a cooperative, bipartisan manner to craft the reauthorization bill. While summarizing his support for the bill, he said that it strengthens the resiliency of our financial market infrastructure while also combating fraud and promoting cooperation among regulators. He urged that every member of the committee support this measure.
Ranking Member Michael Conaway (R-Texas)
In his opening statement, Conaway noted his support for the fact that this is a bipartisan bill. He highlighted and praised the presence of H.R. 6121, the CFTC Research and Development Modernization Act, in Sec. 118 of this reauthorization bill and the inclusion of H.R. 4257 which requires the Commodity Futures Trading Commission (CFTC) to establish an Office of Minority and Women Inclusion and an internship program. Conaway stated that although this bill does not address the important issues regarding the emerging world of digital assets and commodities, it does represent a strong framework that will promote healthy markets and protect customers.
Rep. David Scott (D-Ga.)
In his opening statement, Scott outlined his support for the bill, specifically noting the significance of including H.R. 4257. He said that this bill represents the productive work that can be done in a bipartisan fashion and urged his fellow committee members to support this measure.
Rep. Austin Scott (R-Ga.)
In his opening statement, Scott noted his support for the measure and the importance of including the CFTC Research and Development Modernization Act. He said that this will give the CFTC the critical tools necessary to research new technologies related to the CFTC’s mission.
H.R. 4895, the “CFTC Reauthorization Act of 2019”
Peterson introduced his bill and his manager’s amendment which would reauthorize the CFTC through 2025. Conaway noted that while he supports the extension of authority to the CFTC to pursue fraud, manipulation and disruptive trading that occurs overseas outlined in Sec. 112 of the bill, he would like to continue to work with the committee to ensure that this delegation of authority does not have any unintended consequences and does not interfere with legitimate business activities. Peterson noted that he does not believe it will interfere with legitimate business activity and that this extension of authority was requested by CFTC Chairman Tarbert. Peterson stated that the manager’s amendment includes two substantive changes to the bill. The first is a response to problems surrounding the consideration of EMIR 2.2 and the potential that European Securities and Markets Authority (ESMA) is given supervisory authority over U.S. clearinghouses. He explained that the language change asks the commission to review the appropriateness of the exemptions granted to foreign entities, including clearinghouses, under the jurisdiction of the foreign authority. He noted his hope that the European regulators reconsider their position on this issue. The second change adjusts the conditions that must be met by affiliates to non-financial entities who hope to use end-user clearing exceptions on behalf of their non-financial affiliates. Peterson and Conaway both said that the substantive changes included in the manager’s amendment maintain bipartisan support. Conaway highlighted that Sec. 105 will allow the CFTC to exchange staff with foreign regulators, a change he hopes will improve global regulatory coordination. Reps. Peterson, Conaway, Alma Adams (D-N.C.), Stacey Plaskett (D-V.I), Jefferson Van Drew (D-N.J.), Josh Harder (D-Calif.), Jahana Hayes (D-Conn.), Tom O’Halleran (D-Ariz.), Cindy Axne (D-Iowa), and Jim Costa (D-Calif.) all spoke in support of the bill.
The amended measure was favorably reported to the House by a voice vote.
For more information on this meeting, please click here.