Today, the House Agriculture Committee completed its series of four hearings in advance of writing legislation to reauthorize the Commodity Futures Trading Commission. Led by Congressman Austin Scott (GA-08), the Subcommittee on Commodity Exchanges, Energy, and Credit held a public hearing with Commissioner Sharon Bowen, Commissioner Christopher Giancarlo, and Commissioner Mark Wetjen.

“I appreciate Commissioners Bowen, Giancarlo, and Wetjen taking the time to share their priorities, issues, and challenges in overseeing the commodity markets,” Chairman Austin Scott said. “Their input is vital for us to have a better understanding of how to improve the CFTC. Since February, we have heard from the full range of stakeholders, starting with Chairman Massad, then onto end-users and financial intermediaries, and finally from the commissioners. Guided by our principles that regulatory requirements be both minimized and justified and that regulations provide clarity and certainty, we hope to illuminate areas in which we can help make the Commission function better through this reauthorization process. The success of these markets benefits consumers, the economy, and businesses around the globe, including many in my home state of Georgia, as companies protect themselves from uncertainty.”

“Hearing the commissioners’ views on current rulemakings, issues that warrant the committee’s attention, and priorities for us to consider during reauthorization is an important step before the committee drafts its legislation,” Agriculture Committee Chairman K. Michael Conaway said. “As we move towards reauthorizing the CFTC, Chairman Austin Scott and members of the Agriculture Committee will incorporate what we have learned from this hearing series into our legislation.  Our overarching goal is to ensure that derivatives markets can meet the needs of hedgers and do not become overly or needlessly regulated to the detriment of all market participants. Our economy, both here and around the world, depends on these robust financial markets to allow participants to effectively manage risk.”

Opening Statement of Chairman Austin Scott

House Committee on Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit

RE:  Reauthorizing the CFTC:  Commissioners’ Perspectives

(Remarks as Prepared)

“Good Morning. Thank you for joining us today for this hearing of the Commodity Exchanges, Energy, and Credit Subcommittee as we continue the Agriculture Committee’s work toward CFTC reauthorization.

“Thus far, we’ve appreciated the opportunity to hear perspectives on reauthorization from end-users and market participants. Their testimony has been vital to helping us gain a better and more complete understanding of ways in which our regulatory structure could better serve the markets that it is designed to regulate. Today we will continue our examination of the reauthorization of the CFTC with the important step of hearing from the Commission itself.

“I’m glad to welcome Commissioner Mark Wetjen, Commissioner Sharon Bowen, and Commissioner Chris Giancarlo to the Committee. This marks the first appearance before members of this Committee for Commissioner Bowen, so we extend a warm welcome to her. We thank each of you for taking the time to appear before us today and share your perspectives on the Commission, what works and, perhaps, what doesn’t.

“Guided by our principles that regulatory requirements be both minimized and justified, and that regulations provide clarity and certainty, we hope this reauthorization process will illuminate areas in which we can help the Commission function more efficiently.

“Collectively, the Commissioners represent a wide breadth and depth of experience and insight, and we appreciate their willingness to use their talents in service to the public. Accordingly, one of our goals in this Committee is to ensure that each Commissioner at the CFTC is adequately empowered within his or her role.

“It has been noted many times before this committee, but always bears repeating, that derivatives markets are essential not only to the farmers, ranchers, and end-users who utilize them, but also to our broader economy. We will continue to look for a healthy balance between market access and market integrity, so that the markets meet the needs of those who use them to hedge risk.  

“Thank you again to our witnesses for joining us here today, and thank you for the important work you do at the Commission. You serve our nation well, and we appreciate your choice to do so.

“With that, I’ll turn to our Ranking Member, Mr. Scott.”

Written testimony provided by the witnesses from today’s hearing is linked below. Click here for more information, including the archived webcast.