HR-9128-119
Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Sponsored by Mark Messmer (R-IN)
What it does
This bill would rewrite the disclosure provisions of the Commodity Exchange Act governing when the Commodity Futures Trading Commission (CFTC) can share trader information with Congress, federal and state agencies, and foreign regulators. It would also add new protections stating that sharing information with or from these authorities does not waive legal privileges like attorney-client privilege, while confirming the CFTC cannot withhold information from Congress or defy a federal court order.
Who benefits
Commodity traders and financial firms whose confidential information would gain clearer privilege protections when shared between regulators; the CFTC and cooperating domestic, state, and foreign regulators, who would gain clearer legal authority to exchange data for enforcement purposes; law enforcement and financial regulators pursuing cross-border fraud or manipulation cases.
Who is hurt
Traders or firms under investigation could face reduced ability to contest information-sharing between agencies, since privilege waiver defenses would be narrowed; foreign entities whose governments receive shared data face new representations requirements but also broader access to information; no major industry group appears to face direct financial cost, though compliance and legal staff at trading firms may need to adjust to new information-sharing rules.
Supporters argue
Supporters argue this bill modernizes outdated 1936-era disclosure rules to reflect how global commodity markets and cross-border enforcement actually work, allowing the CFTC to cooperate more effectively with domestic and foreign regulators on fraud and manipulation cases. They contend the added privilege protections encourage firms and agencies to share information freely with regulators without fear that doing so waives legal protections in unrelated proceedings, ultimately strengthening market oversight.
Opponents argue
Opponents argue that expanding the categories of federal, state, and foreign entities that can receive sensitive trader data increases the risk of leaks or misuse, particularly when foreign governments with weaker safeguards are involved. They contend that broadening nonwaiver-of-privilege rules could make it harder for private parties to challenge how their confidential business information is used once it passes between multiple government bodies.