WASHINGTON – U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-AR) delivered the following remarks at a hearing to consider the nomination of Brian Quintenz to serve as Chairman and Commissioner of the Commodity Futures Trading Commission (CFTC).
The following is Chairman Boozman’s statement as prepared for delivery:
“Good afternoon. It is my privilege to call this hearing to order. I thank my colleagues for joining us. Today we will consider the nomination of Mr. Brian Quintenz to be Chairman of the Commodity Futures Trading Commission.
Mr. Quintenz, congratulations on your nomination. Thank you for your willingness to serve.
The CFTC is the only federal financial regulator that oversees agriculture and energy risk management markets, and the resiliency of the derivatives markets are critical to our commodity supply chains.
Well-regulated and efficient commodity markets help our producers manage risks. As our farmers face elevated input costs, interest rate uncertainty, price volatility, and natural disasters, futures markets help producers protect themselves.
Over the years the CFTC’s pragmatic, principles-based approach, has resulted in a workable regulatory framework for markets to function efficiently. The CFTC has historically engaged in constructive dialogue with regulated entities and market participants, and this has built trust and confidence in the CFTC.
This constructive, flexible regulatory approach, combined with diligent policing of the cash and derivative commodity markets, has resulted in the U.S. derivatives markets being the envy of the world. It is my expectation that the commissioners entrusted with leading the agency will continue these practices that have served our country well.
At the same point, the role of the CFTC may expand as Congress – including this committee – considers granting the CFTC authority to regulate the spot digital commodity markets. Additionally, new markets and products, such as prediction markets and crypto-based derivatives, have been developed, which will require the commission’s attention.
As I have said before: the CFTC is the right agency to regulate spot digital commodity trading. The CFTC – and only the CFTC – should regulate the trading of digital commodities.
It is because only the CFTC understands the unique characteristics of commodities and commodity-based contracts. That market knowledge, combined with its flexible, constructive regulatory approach, is why it is the right regulator for spot digital commodity markets.
I look forward to hearing from Mr. Quintenz on these issues. Again, congratulations on your nomination.
I now turn to Ranking Member Klobuchar for her opening statement.”