Ag Committee Approves Bipartisan Legislation to Reauthorize and Improve the Commodity Futures Trading Commission
The House Agriculture Committee approved H.R. 4413, the Customer Protection and End-User Relief Act, by voice vote.
Tamara Hinton, 202.225.0184
WASHINGTON – At the request of Reps. Frank Lucas (R-OK) and K. Michael Conaway (R-TX), the Office of the Inspector General (OIG) for the Commodity Futures Trading Commission (CFTC) investigated the cost-benefit analyses of four rules related to the Dodd-Frank Wall Street Reform and Consumer Protection Act. The CFTC is required by the Commodity Exchange Act (CEA) to evaluate the economic impact any proposed regulation will have on regulated entities and markets.
"The IG's report confirms the CFTC's focus on speed rather than deliberation and its bare minimum approach to cost-benefit analysis. We cannot unleash a wave of new regulations without an understanding of the impact they will have on the markets and the economy. The very principle behind cost-benefit analysis and straightforward good government is balance - ensuring regulations' costs to the economy don't outweigh the benefits," said Rep. Frank D. Lucas, Chairman of the House Agriculture Committee.
"This report confirms my grave concern that the Commission has ignored requests that an adequate and comprehensive analysis be conducted. It is now apparent that the Commission has severely limited their approach to cost-benefit, largely excluding the opinion and input of economists for that of lawyers. We owe it to the sanctity of the American financial system and our nation’s economic growth, competitiveness, and innovation to explore all options that would force the Commission to move towards a more robust examination of costs and benefits," said Rep. K. Michael Conaway, Chairman of the Subcommittee on General Farm Commodities and Risk Management.
A copy of the report can be found here. Highlights of the report are below.
1. Rulemaking is being rushed to meet arbitrary deadlines.
2. CFTC staff used a bare minimum approach to cost-benefit analysis.
3. Legal concerns outweigh economic concerns.