WASHINGTON – Reps. Frank Lucas, Collin Peterson, K. Michael Conaway, and David Scott today introduced H.R. 4413, the Customer Protection and End-User Relief Act. This legislation is a bipartisan effort to reauthorize and improve the operations of the Commodity Futures Trading Commission (CFTC), as well as address concerns relating to protecting customers from another market failure such as MF Global and Peregrine Financial. It is the product of a multi-year process that included hearing perspectives from market participants, end-users, futures customers, and the CFTC.
"I'm pleased to introduce this bipartisan legislation with my friends and colleagues. It is a responsible and balanced bill that improves the efficiency and accountability of the CFTC, ensures regulations are implemented in a sensible manner, maintains the integrity of the marketplace, and guarantees our global competitiveness. We will advance our bill in the committee this week and then prepare for full House consideration," said Rep. Frank D. Lucas, Chairman of the House Agriculture Committee.
"This bill builds upon the previous bipartisan actions of the Agriculture Committee to further clarify that those not responsible for the financial collapse, end-users who actually use the markets to hedge against risk, do not bear the brunt of new financial regulations. Yet again, the Agriculture Committee has put aside Washington’s extreme partisan rhetoric in favor of bipartisan legislation. While I don’t think this bill is perfect, no bill ever is. This is reasonable legislation that I hope my colleagues will support," said Rep. Collin Peterson, Ranking Member of the House Agriculture Committee.
"I am very excited about the full committee taking up this bipartisan bill, which would protect consumers and end users, like farmers, ranchers, and small businesses. It's the culmination of a lot of work by Chairman Lucas and the Subcommittee on General Farm Commodities and Risk Management. Subcommittee Ranking Member Scott and I held four hearings and the full committee also held a hearing on the legislation. My bill requiring the CFTC to quantify the costs and benefits of future regulations and orders was included in the overall legislation. Quantifying the implications of new regulations will strengthen our overall economy and encourage the creation of jobs," said Rep. K. Michael Conaway, Chairman of the Subcommittee on General Farm Commodities and Risk Management.
"I am proud to sign onto the CFTC reauthorization bill as an original cosponsor. After reviewing this bill, I am confident that the text in its current form will continue to help further the vital mission of the CFTC. After meeting with the current nominee to lead the agency, Mr. Timothy Massad, it is clear that this bill will bring reforms and codify many institutional regulations that the industry has already begun to take. I look forward to working with my colleagues in the House and Senate to help give the CFTC the resources necessary to continue its mission of protecting market participants and the public from fraud and manipulation," said Rep. David Scott, Ranking Member of the Subcommittee on General Farm Commodities and Risk Management.
The text of the bill can be found here. A summary of the legislation can be found here. The House Agriculture Committee will consider the legislation during a business meeting scheduled for Wednesday, April 9 at 10 am ET.