House Dem: CFTC bill would be ‘sowing the seeds of future disaster’

Rep. Louise Slaughter (D-N.Y.) argued Thursday that the Commodity Futures Trading Commission (CFTC) measure on the floor this week would lead to another economic crisis.

The bill, H.R. 4413, would reauthorize the agency through 2018 and includes other provisions to reform its regulatory process.

{mosads}”Unfortunately, the legislation passed out of the Rules Committee last night is a backdoor attempt to undo some of the reforms and a precursor to another financial crisis,” Slaughter, the top Democrat on the House Rules Committee, said during preliminary floor debate.

“If this bill moves forward as written, we are sowing the seeds of future disaster in this country,” Slaughter added.

Rep. Alcee Hastings (D-Fla.), another member of the House Rules Committee, said the bill’s provision to require the CFTC to conduct economic analyses of its proposed regulations would bog down their implementation. 

“The redundant cost-benefit requirements contained in H.R. 4413 will not only hamper the appropriate consideration and promulgation of new rules, but expose the CFTC to greater industry litigation,” Hastings said.

But House Rules Committee Chairman Pete Sessions (R-Texas) said Democrats’ arguments were overblown. He noted that the House Agriculture Committee approved the bill unanimously.

“This is not about deregulating or doing away with something or defunding somebody,” Sessions said. “This is not about causing some market crash or failure.”

The legislation is expected to hit the House floor Friday.