Agricultural News
CFTC Reauthorization Pushed Through the House 246 to 171
Wed, 10 Jun 2015 04:47:45 CDT
In a largely partisan vote, the House passed H.R. 2289, the Commodity End-Users Relief Act, by a vote of 246-171. Introduced by House Agriculture Committee Chairman Mike Conaway and a pair of Georgia members of the Committee- Austin Scott and David Scott, this bill reauthorizes the Commodity Futures Trading Commission (CFTC), which has operated without Congressional authorization for nearly two years.
"I am proud to put forth this strong, bipartisan bill that has a positive impact on virtually every portion of our nation's economy," Chairman Conaway said. "H.R. 2289 builds on the work of the previous two Congresses to reauthorize the CFTC and contains important customer protections, enhances the Commission's cost-benefit analysis requirements, and provides relief for end-users from burdensome requirements. I appreciate the support of my colleagues in ensuring these markets run efficiently and effectively."
In advance of writing H.R. 2289, the Agriculture Committee held a series of hearings where committee members heard from the full range of market participants, including end-users, financial intermediaries, and agency commissioners.
Among other things, the measure would require CFTC to analyze the costs and benefits of all new rules and exempt grain elevators and other agricultural interests that are managing their own money from having to maintain records of all forms of communications that lead to a trade.
"It is now more difficult and more expensive for farmers, ranchers, processors, manufacturers and merchandisers to manage their risks than it was five years ago," said House Agriculture Chairman Mike Conaway, R-Texas, calling the bill's regulatory changes "narrowly targeted."
The top Democrat of the House Ag Committee, Colin Peterson, issued a statement after the vote called it a costly measure that provides little benefit. "This bill will roll back important financial reforms, curtail negotiations with foreign regulators and make it more difficult for the CFTC to do its job. As this process moves forward, I hope that we can come together and see a simple reauthorization, that will provide protections for customers and certainty for the CFTC, signed into law."
The bill now faces an uncertain future in the Senate and a veto threat by the Obama Administration. In 2014, a similar measure was passed by the House- but the then Democrat controlled Senate allowed it to die. Even with the GOP majority in the Senate this year- there is no indication from Senate Ag Committee Chairman Pat Roberts whether he will have the Committee take up the bill or not.
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