Congressmen question CFTC’s rule-making process

Scott Garrett

In a Wednesday letter to CFTC Chairman Gary Gensler, a group of Congressmen questioned the CFTC’s rule-making process.

Congressmen Scott Garrett, chairman of the Capital Markets and GSE Subcommittee; Randy Neugbauer, chairman of the Oversight and Investigations Subcommittee; Jeb Hensariling, vice-chairman of the Financial Services Committee; and Spencer Bachus, chairman of the Financial Services Committee, pointed to a Sept. 28 ruling by the U.S. District Court for the District of Columbia striking down the CFTC’s “Positions Limits Rule.”

The district court’s ruling found that the CFTC failed to follow Congressional intent and the letter of the law while implementing Title VII of the Dodd-Frank Act.

“The CFTC’s error in this case was that it fundamentally misunderstood and failed to recognize the ambiguities in the statute,” U.S. District Court Judge Robert Wilkins said. “The agency failed to bring its expertise and experience to bear when interpreting the statute and offered no explanation for how its interpretation comported with the policy objectives of the [Dodd-Frank] Act.”

The Congressman, as a result of the court’s findings, expressed concern about CFTC funding and prioritization.

“We are very concerned…that CFTC staff are using limited resources to pursue ideological and political goals rather than using the resources allocated by Congress to carry out the direct requirements of the agency,” the letter said.

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