Opening Statements

Today, House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) delivered the following opening statement at today's full committee hearing “The CFTC at 50: Examining the Past and Future of Commodity Markets.”

Remarks as prepared:

Good morning and welcome to the House Committee on Agriculture.

Fifty years ago, the Commodity Futures Trading Commission opened its doors and began operation as the world’s first independent regulatory agency specifically focused on derivatives.

From its early days of safeguarding agricultural futures markets to today’s global swaps markets, the Commission plays a critical role in adapting to an increasingly interconnected and dynamic world economy.

Over the decades, well-regulated derivatives markets have been an anchor of stability during periods of tremendous change, from financial crises and global supply chain disruptions to technological advancements and market globalization.

Today’s hearing is to examine the full arc of the Commission’s fifty-year history and to assess its long-term success in meeting the purposes of the Commodity Exchange Act which it is chartered to implement. 

In a little over a hundred words, Section Three of the Act lays out an ambitious agenda to protect market participants and ensure resilient, fair, and dynamic American markets.

The first sentence reads “It is the purpose of this Act to serve the public interest…through a system of effective self-regulation…under the oversight of the Commission.” In this sentence, Congress established the principle that industry participants are partners in regulation. As partners, they have both rights and duties under the Act.

This is an extraordinary feature of our regulatory system. By holding regulated parties accountable to outcomes and not just compliance checklists, Congress sought to expand the responsibility for promoting market integrity.

The purpose continues, laying out the principles of market integrity and customer protection that are the bedrock of the Commission’s work and essential to a healthy functioning marketplace.

Section 3 closes with the final purpose of the Commodity Exchange Act: “to promote responsible innovation and fair competition…” This too, is a remarkable charge. Unique among federal financial laws, Congress has unambiguously set out the expectation that new ideas, new products, and new services should be welcomed across derivatives markets. It articulates the principle that the Commodity Exchange Act is not intended to be static or to govern static markets.

As we examine the Commission’s success over the past 50 years, we should start our inquiry here, with the purpose of the Commodity Exchange Act, and consider whether the Commission is fulfilling that statutory mandate.

Joining us are six expert witnesses whose careers span the history of the Commission. They were there for the most pivotal moments in the Commission’s history and their work shaped the markets that exist today. We are honored to have them with us today to share their insights into the work of the Commission and its impact on global derivatives markets.