Key insights
- The CFTC will continue rulemaking despite having only one commissioner. This could lead to increased regulatory uncertainty in derivatives markets, potentially increasing compliance costs for financial institutions and dampening risk appetite. The impact is slightly negative as it introduces a degree of instability.
Investing.com -- The U.S. Commodity Futures Trading Commission will proceed with issuing regulations despite having only one sitting commissioner, Chair Michael Selig told lawmakers on Thursday.
Selig, currently the sole member of the five-member agency, testified before the House Agriculture Committee that the CFTC cannot halt its regulatory work.
"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," Selig said.
The CFTC chair’s comments came as the derivatives regulator faces a vacancy of four commissioner positions on its board.
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