Comment Text:
May 14, 2024
Mr. Christopher Kirkpatrick
Secretary of the Commission
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street NW
Washington DC 20581
Dear Mr. Kirkpatrick,
It was abundantly clear in watching the CFTC’s public meeting on Friday, May 10, 2024, that CFTC staff, and their complaints about the work required to regulate event contracts, are the motivation behind this proposed rule. There are several problems with the CFTC bureaucracy dictating regulation to both the Commissioners and the public:
1) Chairman Rostin Benham has acknowledged that CFTC staff are working at the office less than one day per week on average. (You can watch the video here: https://www.youtube.com/live/ipnOHtIqhgg?si=4vodHZRtPcarqUKC&t=4344). The Commission should first investigate having staff come to work more than once a week before considering banning certain event contracts to lessen staff workload.
2) The draft discussed at the public meeting would have the Commission delegate authority to CFTC staff to reject contracts. This transfer of authority was removed by an amendment, with Chairman Benham as the only vote against it.
3) Even more embarrassing for Chairman Benham, none of the 162 lawyers in the Division of Enforcement bothered to attend this public meeting. (Here is video from the meeting: https://www.youtube.com/live/_rZf-y5bsro?si=g2PjS_s6n3ukT2H7&t=4550)
4) While Chairman Benham claims election contracts are too burdensome for the CFTC, he’s also calling for the CFTC to regulate crypto. It’s difficult to follow how the CFTC has difficulty regulating the former but could handle regulating the latter.
It is apparent that the Chairman lacks control over his agency or the respect of CFTC staff. Even the other Commissioners seem to be aware of the problem. Commissioner Caroline Pham has proposed a Government Accountability Office (GAO) study to correct “the breakdown of the Commission’s internal procedures and processes.” One can hope that a good steward of taxpayer resources like Senator Tommy Tuberville or Representative Dusty Johnson will hold failed leadership accountable.
Thank you for the opportunity to comment on this important matter.
Sincerely,
Maurice Bransfield
