The Commodity Futures Trading Commission will press ahead with its regulatory responsibilities even as the agency operates with only a single sitting commissioner, Chair Michael Selig told lawmakers on Thursday.
Selig, who is the lone member of the CFTC's five-person commission at present, appeared before the House Agriculture Committee and said the commission cannot stop its rulemaking work while vacancies remain open. "We cannot, for the sake of the American people, slow down in our rulemaking. It’s very important that we get investor protections, consumer protections and safeguards for our markets, and so I cannot, unfortunately, commit to not do my job that I was appointed to do by the president," he said.
The chair's testimony highlighted that the derivatives regulator currently has four unfilled commissioner positions. Selig framed continued rulemaking as a duty tied to protecting investors, consumers and the functioning of markets.
Committee members questioned how the CFTC will manage its workload and maintain regulatory momentum with a reduced quorum. In his remarks, Selig reiterated that pausing or slowing the agency's rule development would not be appropriate given its mandate to safeguard markets and market participants.
Although his testimony focused on the need to continue producing regulations, Selig did not offer additional details on timelines for action or how the commission will prioritize specific rulemakings while operating with a single commissioner. The emphasis was on the principle that the agency's work must continue in service of investor and consumer protections and market safeguards.
As the CFTC navigates this period with multiple vacancies on its board, Selig's position underscores an intention to maintain regulatory output despite the compressed composition of the commission. The chair's statement to the House Agriculture Committee sets clear expectations that the agency will move forward with rulemaking activities rather than pause them pending appointment of additional commissioners.
Key points
- The CFTC is operating with one of five commissioners currently seated.
- Chair Michael Selig told the House Agriculture Committee the agency will continue its rulemaking work to protect investors, consumers and market integrity.
- The commission faces four vacant commissioner positions while proceeding with regulatory actions.
Risks and uncertainties
- Potential governance and quorum challenges while the commission lacks a full slate of commissioners - this impacts the regulatory process for derivatives and financial markets.
- Uncertainty about prioritization and timelines for new rules given constrained staffing at the commissioner level - this could affect market participants awaiting regulatory clarity.
- Operational strain from continuing rulemaking with limited leadership on the commission - this may affect oversight of investor and consumer protections.