Congressman Taylor Introduces Bill to Simplify CFTC Advisory Committee Structure

WASHINGTON, D.C. – Congressman Dave Taylor (OH-02) and Congresswoman Shontel Brown (OH-11) today introduced the bipartisan Commodity Futures Trading Commission (CFTC) Advisory Committee Improvement Act, which will allow each of the five existing CFTC advisory committees to operate equally, eliminating unnecessary complexity and empowering the CFTC to operate more efficiently. 

“The five CFTC Advisory Committees exist to guide and inform the CFTC on critical policy matters, not create unnecessary complications through red tape and bureaucracy,” said Congressman Taylor. “My bill will create consistency within the advisory committee structure so that stakeholders can focus on recommending policy solutions in their areas of expertise. This bill will allow the CFTC to more efficiently serve Americans and stop the government from putting mud in the gears of farmers, investors, and businesses with needlessly complicated rules.”

“The CFTC Advisory Committee Improvement Act is about good governance: consumers and investors need a CFTC that operates efficiently and listens to the people it serves. This legislation ensures that the CFTC has a more consistent and transparent framework to carry out its mission. I’m proud to co-lead this bipartisan effort with Congressman Taylor to implement practical solutions to improve the CFTC,” said Congresswoman Brown.

Background:

The Commodity Futures Trading Commission (CFTC) is the federal regulatory agency that oversees U.S. commodity markets, including the buying and selling of corn, soybeans, oil, and many other products. Many farmers and businesses across the country interact with the CFTC daily as they market grain or hedge risk. The CFTC plays a critical role in ensuring market integrity and transparency to allow trading to happen without the risk of being defrauded. 

The CFTC currently has five advisory committees consisting of stakeholders who provide valuable input to the CFTC on their respective issues, including agriculture, energy and environmental markets, global markets, market risk, and technology.

While four advisory committees were created pursuant to the Federal Advisory Committee Act, the fifth was created by the Commodity Exchange Act and is subject to a different set of rules. This difference creates unnecessary complexities and administrative burden for the CFTC, as each committee has a similar purpose.

The CFTC Advisory Committee Improvement Act would streamline the CFTC’s advisory committee structure to allow all advisory committees to operate equally. 

Specifically, this bill would eliminate the single authorization of the Energy and Environmental Markets Advisory Committee and replace it with a generic authorizing provision for all advisory committees. This standardization will make the CFTC more efficient, allowing it to better focus on its mission of ensuring integrity in U.S. derivatives markets and helping American businesses, including farmers, manage financial risk. 

The full bill text is available here.