During my testimony before the Senate Agriculture Committee last November, I promised to work diligently as Chairman of the Commodity Futures Trading Commission (CFTC) to uphold our status as a top-tier financial market regulator. My focus is on protecting farmers and ranchers, eliminating outdated regulations, and supporting President Trump’s vision of positioning America as the leading hub for cryptocurrency.
I’m happy to share that in my first 100 days, we’ve made notable strides towards these goals. The CFTC is rapidly advancing toward a new era for America’s financial markets.
While many Americans might not be familiar with the CFTC, it plays a crucial role as a major financial regulator. The agency oversees futures, options, and swaps, managing over $500 trillion in U.S. financial activity annually. These financial instruments help farmers mitigate risks from unpredictable weather and rising costs, while airlines rely on them for stable jet fuel prices. Essentially, the CFTC helps stabilize prices for everyday essentials like groceries and gasoline. Recently, there’s been a surge of interest in prediction markets and products linked to cryptocurrencies and AI data center computing.
Since my confirmation to lead this agency, my strategy has been straightforward. As we explore new financial frontiers, the objective is to ensure solid market conditions for all Americans. I initiated changes by reversing some of the Biden administration’s policies, notably dismantling a climate risk division and canceling various climate-related initiatives that didn’t align with the agency’s mission or benefit market participants. The CFTC is a real financial regulator, not a political tool.
We’ve also moved away from the previous administration’s strict enforcement approach. Rather than collaborating with innovators and job creators, there was a tendency to take legal action against them, which drove many leading tech firms overseas, resulting in lost American jobs and businesses. Fortunately, federal courts have dismissed numerous claims, but we’re still in the process of rectifying the fallout.
Alongside correcting the previous administration’s errors, the CFTC is swiftly advancing the president’s priorities. I’ve established an Innovation Advisory Board with diverse members from academia and the financial sector, and revitalized the Agriculture Advisory Board to ensure that farmers and market participants have a voice. Our market has deep roots in agricultural product trading.
The CFTC was founded to ensure that these markets are deep, liquid, and fair because our farmers need access to effective risk management tools. Importantly, we’re also enhancing the Commitment of Traders (COT) report to provide more frequent updates, addressing long-standing requests from agricultural players. Under my guidance, we aim to restore confidence among growers and producers.
Another key focus is to reduce compliance burdens and energy costs for small businesses. We’ve been working towards a final decision on a minimal Standard exemption, which will offer regulatory relief to energy, agriculture, and critical mineral producers who lack full access to commodity swap markets. This initiative aims to broaden market participation and help stabilize commodity prices over time.
With new asset classes emerging and potential legislation for a crypto market structure on the horizon, the CFTC is ready to take on its responsibilities for the rapidly expanding $3 trillion crypto market.
In January, we collaborated with the Securities and Exchange Commission (SEC) on Project Crypto—a joint initiative to streamline federal oversight of crypto asset markets.
In March, we implemented various steps to enhance the regulatory landscape. These included granting relief to digital wallet software developers, launching a crypto asset classification system to distinguish between digital securities and products, clarifying tokenized collateral, and forming an innovation task force to foster clear regulations for U.S. innovators working on new derivatives market products.
We’ve extended the same regulatory clarity to prediction markets, which are vital for information discovery and are overseen by the CFTC under the Commodity Exchange Act. Recently, the agency has sought early public feedback while considering new regulations for these markets.
I’m proud to support the Trump Administration’s initiatives to move beyond restrictive regulatory practices, aiming to create a derivatives market that benefits everyone.
Our derivatives markets rank among the most sophisticated and liquid globally. As financial markets move toward complete digitization, regulators must be disciplined enough to impose only the most necessary regulations. Otherwise, we risk losing innovation and creating repercussions for our country.
Reflecting on the past, the next 100 days and beyond will rest on a foundation of transformation, as the CFTC strives to maintain its reputation for effective financial market oversight.
