Rep. Dusty Johnson (SD-AL), Chairman of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development, delivered the following opening remarks at today’s subcommittee hearing entitled, “Reauthorizing the CFTC: Stakeholder Perspectives.”
Remarks as prepared for delivery:
Good morning. I want to welcome you all to for the Commodity Markets, Digital Assets, and Rural Development subcommittee hearing titled, “Reauthorizing the CFTC: Stakeholder Perspectives.”
Derivatives markets are the backbone of our global financial system, providing essential tools for risk management, price discovery, and efficient capital allocation.
These markets allow businesses and investors to hedge against price volatility, promoting stability and predictability across various sectors, from agriculture to energy to finance.
In agriculture, farmers use derivatives to lock in prices for their crops, protecting themselves against unpredictable weather and market fluctuations.
In the energy sector, companies use derivatives to stabilize prices for oil, gas, and electricity, ensuring steady operations and planning.
In finance, derivatives help manage interest rate risks, currency fluctuations, and credit exposure, contributing to the overall stability of the economy.
The U.S. futures and swaps markets are the largest, most liquid markets in the world, due in no small part to the work of the Commodity Futures Trading Commission.
Each day, the Commission works to ensure the integrity, vibrancy, and resiliency of the derivatives markets. In doing so, it protects farmers, ranchers, manufacturers, and other end-users who rely on these markets for robust risk-management tools and accurate pricing.
Today, we will hear from stakeholders who will provide diverse perspectives on the importance of reauthorizing the Commission, and the issues and priorities we should consider during this process.
This past March, CFTC Chairman Behnam testified before the Committee. Our Ranking Member asked him about the importance of reauthorizing the Commission. Chairman Behnam put it well when he said:
“…we have to reauthorize the agency to ensure the public and our international partners understand that Congress and this Committee takes derivatives markets and America’s supremacy in derivatives markets very seriously…we have the biggest markets in the world, and I think we all want to keep it that way. And reauthorization is one step to ensure that condition remains the same.”
I could not agree more. It is our role as authorizers to continue to examine the work of the Commission and the needs of derivatives market users. Reauthorization is how we fulfill this role.
Just as this Committee successfully passed digital asset market structure legislation in a bipartisan manner, both in the Committee and on the House floor, it is my goal to achieve the same bipartisan success with the reauthorization of the CFTC.
I would like to thank our witnesses for joining us today. We look forward to hearing your testimony and the opportunity to discuss this important topic.
