CFTC Reauthorization (CRS Report for Congress)
| Release Date |
Revised June 9, 2008 |
| Report Number |
RS22028 |
| Report Type |
Report |
| Authors |
Mark Jickling, Government and Finance Division |
| Source Agency |
Congressional Research Service |
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Summary:
Authorization for the Commodity Futures Trading Commission (CFTC), a "sunset" agency established in 1974, expired on September 30, 2005. In the past, Congress has used the reauthorization process to consider amendments to the Commodity Exchange Act (CEA), which provides the basis for federal regulation of commodity futures trading. The last reauthorization resulted in the enactment of the Commodity Futures Modernization Act of 2000 (CFMA), the most significant amendments to the CEA since the CFTC was created in 1974. Both chambers considered reauthorization bills in the 109th Congress, but none was enacted.
In the 110th Congress, CFTC reauthorization provisions were added to the Farm Bill (H.R. 2419) and enacted over the President's veto on May 22, 2008, as P.L. 110-234. This report provides brief summaries of the issues addressed in that law, including (1) regulation of energy derivatives markets, where some blame excessive price volatility on a lack of effective regulation, (2) the legality of futures-like contracts based on foreign currency prices offered to retail investors, and (3) the market in security futures, or futures contracts based on single stocks, which were authorized by the CFMA, but trade in much lower volumes than their proponents expected.
This report will be updated as developments warrant.
