U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-AR) addressed the nomination of Michael Selig as Chairman and Commissioner of the Commodity Futures Trading Commission (CFTC) during a hearing on Wednesday. In his prepared statement, Boozman emphasized the importance of empowering the CFTC to oversee digital commodity markets.
Boozman highlighted the unique role of the CFTC as "the only federal financial regulator that oversees the agriculture and energy risk management markets," noting that these markets are essential for managing risks such as interest rate uncertainty, commodity price volatility, and natural disasters. He stated that "well-regulated, liquid and resilient derivatives markets help our producers manage risks ranging from interest rate uncertainty, commodity pricing volatility and natural disasters."
He praised the CFTC's history of taking a pragmatic approach to regulation: "The CFTC has historically taken a pragmatic, principles-based approach to regulation, and has engaged in constructive dialogue with regulated entities and market participants." Boozman also credited this regulatory style with fostering trust in U.S. derivatives markets.
Boozman acknowledged changes in the marketplace, particularly with emerging sectors like crypto derivatives and event contracts. He noted Congress is working on legislation to grant the CFTC authority over spot digital commodity markets. According to Boozman, it is crucial for leadership at the CFTC to balance attention between new market developments and traditional agricultural risk management.
He reiterated his stance that "the CFTC is the right agency to regulate spot digital commodity trading," arguing that only the CFTC possesses "the right regulatory approach, expertise, and skill set" for this responsibility. However, he pointed out that Congress must act to provide this authority: "While the CFTC has the right regulatory approach... it is up to Congress to grant the agency this new authority."
Boozman warned that without congressional action, U.S. consumers would remain vulnerable: "Failure by Congress to do so will leave U.S. consumers vulnerable to bad actors and will keep the U.S. behind the rest of the world." He stressed that absent a comprehensive framework, legitimate businesses may avoid U.S. markets while consumer participation—and associated risks—continue to grow.
He called on his colleagues to advance bipartisan legislation: "This committee has an opportunity to advance its portion of a regulatory framework that protects U.S. customers, allows U.S. businesses to grow, and recognizes... innovative blockchain technology." Boozman thanked Senator Booker for his partnership on a bipartisan draft proposal.
Boozman concluded by expressing his intent to work closely with Selig if confirmed: "As this committee moves forward with its bipartisan proposal... I am eager to work with Mr. Selig and the CFTC on ensuring we get this right."
The hearing continued with remarks from Ranking Member Klobuchar.
