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SEC Charges Nuclear Engineer With Insider Trading
WASHINGTON, June 25 -- The Securities and Exchange Commission issued the following litigation release (No. 1:26-cv-00744; D. Del. Filed June 24, 2026) involving a nuclear engineer charged with insider trading:
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Today, the Securities and Exchange Commission filed charges against Casey Muggleston, a nuclear engineer formerly employed by Constellation Energy Corporation, for allegedly insider trading in Constellation's securities based on confidential information he obtained during his employment.
According to the SEC's complaint, in 2024, Muggleston was an engineering manager at Constellation.
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WASHINGTON, June 25 -- The Securities and Exchange Commission issued the following litigation release (No. 1:26-cv-00744; D. Del. Filed June 24, 2026) involving a nuclear engineer charged with insider trading:
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Today, the Securities and Exchange Commission filed charges against Casey Muggleston, a nuclear engineer formerly employed by Constellation Energy Corporation, for allegedly insider trading in Constellation's securities based on confidential information he obtained during his employment.
According to the SEC's complaint, in 2024, Muggleston was an engineering manager at Constellation.In that role, Muggleston allegedly had access to material nonpublic information relating to Constellation's confidential project to potentially restart its nuclear power plant at Three Mile Island, which Constellation referred to as "Project Tetris." Also according to the complaint, Muggleston breached the duty he owed to Constellation and violated the federal securities laws when he used material nonpublic information about Project Tetris to trade in the company's securities in advance of Constellation's September 20, 2024, announcement that it had entered into a 20-year power purchase agreement with Microsoft Corporation that would pave the way for Constellation to restart the nuclear power plant. The complaint alleges that Muggleston's illegal trading generated profits of approximately $1,400,000.
The SEC's complaint, filed in the United States District Court for the District of Delaware, charges Muggleston with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks an injunction, disgorgement with prejudgment interest, and a civil penalty.
Today, in a parallel criminal action, the United States Attorney's Office for the District of Delaware announced an indictment charging Muggleston with securities fraud.
The case originated from the SEC Market Abuse Unit's Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns. The SEC's investigation was conducted by Jeffrey Oraker, Patrick McCluskey, and Danielle R. Voorhees of the Division of Enforcement's Market Abuse Unit, under the supervision of Market Abuse Unit Chief Joseph G. Sansone, with the assistance of trial counsel Sharan Lieberman and supervisory trial counsel Gregory A. Kasper of the SEC's Denver Regional Office. The SEC's litigation will be led by Ms. Lieberman. The SEC appreciates the assistance of the FBI and the United States Attorney's Office for the District of Delaware.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/litreleases/2026/comp26573.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26573
SEC Charges New Jersey Man, His Company in Connection With Alleged Insider Trading
WASHINGTON, June 24 -- The Securities and Exchange Commission issued the following litigation release (No. 2:26-cv-07525; D.N.J. filed June 23, 2026):
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Securities and Exchange Commission v. Justin Jennings and Vortex Strategies LLC, No. 2:26-cv-07525 (D.N.J. filed June 23, 2026)
On June 23, 2026, the Securities and Exchange Commission charged Justin Jennings and Vortex Strategies LLC, a Wyoming limited liability company Jennings owned and controlled, with insider trading based on material nonpublic information Jennings allegedly misappropriated from his romantic partner and used to trade
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WASHINGTON, June 24 -- The Securities and Exchange Commission issued the following litigation release (No. 2:26-cv-07525; D.N.J. filed June 23, 2026):
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Securities and Exchange Commission v. Justin Jennings and Vortex Strategies LLC, No. 2:26-cv-07525 (D.N.J. filed June 23, 2026)
On June 23, 2026, the Securities and Exchange Commission charged Justin Jennings and Vortex Strategies LLC, a Wyoming limited liability company Jennings owned and controlled, with insider trading based on material nonpublic information Jennings allegedly misappropriated from his romantic partner and used to tradein advance of several corporate announcements.
According to the SEC's complaint, between February 2022 and October 2024, Jennings misappropriated inside information from his then-romantic partner, an account executive who worked at a strategic communications and investor relations firm. As alleged, Jennings used his romantic partner's work-issued laptop computer to access material nonpublic information, including information related to mergers and acquisitions, earnings announcements, and other significant corporate events involving several of the communication and investor relations firm's public company clients, without her authorization. The complaint further alleges that, based on this confidential information, Jennings used his personal brokerage account and an account in the name of Vortex to purchase the securities of eight public companies ahead of significant corporate disclosures and made illicit profits of approximately $2.7 million.
The SEC's complaint, filed in U.S. District Court for the District of New Jersey, charges Jennings and Vortex with violating the antifraud provisions of Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against them.
In a parallel action, the U.S. Attorney's Office for the District of New Jersey announced criminal charges against Jennings.
The SEC's investigation was conducted by David Bennett of the Division of Enforcement's Market Abuse Unit and Julia Huseman and Nikolay Vydashenko of the SEC's Fort Worth Regional Office with assistance from John Rymas of the Market Abuse Unit's Analysis & Detection Center. The matter was supervised by Jaime Marinaro and Joseph G. Sansone. The litigation will be led by Jason Rose and supervised by Keefe Bernstein, both of the Fort Worth Regional Office.
The staff appreciates the assistance of the Financial Industry Regulatory Authority (FINRA), the Federal Bureau of Investigation, and the U.S. Attorney's Office for the District of New Jersey.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/complaints/2026/comp26570.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26570
SEC Appoints Kathleen Hutchinson as Director of Office of International Affairs
WASHINGTON, June 24 -- The Securities and Exchange Commission issued the following news release:
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SEC Appoints Kathleen Hutchinson as Director of Office of International Affairs
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The Securities and Exchange Commission has appointed Kathleen M. Hutchinson as Director of the agency's Office of International Affairs (OIA). OIA advises the Commission on international policy matters, coordinates with foreign authorities across the globe to facilitate cross-border enforcement and supervisory cooperation and provides technical assistance.
Ms. Hutchinson has served as OIA's Acting Director
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WASHINGTON, June 24 -- The Securities and Exchange Commission issued the following news release:
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SEC Appoints Kathleen Hutchinson as Director of Office of International Affairs
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The Securities and Exchange Commission has appointed Kathleen M. Hutchinson as Director of the agency's Office of International Affairs (OIA). OIA advises the Commission on international policy matters, coordinates with foreign authorities across the globe to facilitate cross-border enforcement and supervisory cooperation and provides technical assistance.
Ms. Hutchinson has served as OIA's Acting Directorsince January 2025. She started at the SEC in 2003 as an attorney-advisor in the Office of Compliance Inspections and Examinations, now the Division of Examinations, and joined OIA in 2008. Ms. Hutchinson has held several other positions in OIA, including Deputy Director and Assistant Director. She has twice served as Acting Director of the office.
"Kathleen has exhibited her dedication to public service and her commitment to our mission for over two decades, and I am grateful for her readiness to lead our Office of International Affairs on a permanent basis," said SEC Chairman Paul S. Atkins. "She has effectively guided many international initiatives with our counterparts abroad, and I look forward to her continued leadership and counsel on international policy and cooperation issues."
Ms. Hutchinson said, "The talented staff in our Office of International Affairs make it a privilege to come to work each day and serve investors and our markets. Advancing the SEC's international priorities through engagement with foreign counterparts on policy issues, supervisory and enforcement matters, and technical assistance is critical to the SEC's ability to carry out its mission. I'm grateful to Chairman Atkins for this opportunity and look forward to continue working with the Commission, my SEC colleagues, and foreign authorities to address evolving challenges facing global markets today."
Kathleen earned a J.D./M.A. from American University's Washington College of Law and School of International Service. She holds a B.A. from Binghamton University. She began her legal career in private practice in Washington D.C. and New York City.
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Original text here: https://www.sec.gov/newsroom/press-releases/2026-58-sec-appoints-kathleen-hutchinson-director-office-international-affairs
Polypropylene Corrugated Boxes From Vietnam Injure U.S. Industry, Says USITC
WASHINGTON, June 24 -- The U.S. International Trade Commission issued the following news release on June 23, 2026:
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Polypropylene Corrugated Boxes from Vietnam Injure U.S. Industry, Says USITC
The U.S. International Trade Commission (Commission or USITC) today determined that a U.S. industry is materially injured by reason of imports of polypropylene corrugated boxes from Vietnam that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Jason E. Kearns and Amy A. Karpel voted in the
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WASHINGTON, June 24 -- The U.S. International Trade Commission issued the following news release on June 23, 2026:
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Polypropylene Corrugated Boxes from Vietnam Injure U.S. Industry, Says USITC
The U.S. International Trade Commission (Commission or USITC) today determined that a U.S. industry is materially injured by reason of imports of polypropylene corrugated boxes from Vietnam that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Jason E. Kearns and Amy A. Karpel voted in theaffirmative.
As a result of the Commission's affirmative determination, Commerce will issue an antidumping duty order on imports of this product from Vietnam.
The Commission also made a negative critical circumstances determination with respect to the subject imports from Vietnam for which Commerce had made a final affirmative critical circumstances finding in its antidumping duty investigation.
The Commission's public report, Polypropylene Corrugated Boxes from Vietnam (Inv. No. 731-TA-1738 (Final), USITC Publication 5759, July 2026), will contain the views of the Commission and information developed during the investigation.
The report will be available on the USITC website by August 3, 2026.
Status of proceedings, links to relevant documents, and more information about the investigations can be found on the Commission's Investigations Database System (IDS).
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Original text here: https://www.usitc.gov/press_room/news_release/2026/er0623_68792.htm
EEOC Sues Golding Barge Line for Disability Discrimination
WASHINGTON, June 24 -- The Equal Employment Opportunity Commission issued the following news release:
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EEOC Sues Golding Barge Line for Disability Discrimination
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Federal lawsuit claims towboat and barge company rescinded job offer because of vision test results unrelated to the position
JACKSON, Miss. -Golding Barge Line, Inc., an inland towboat and barge company in Vicksburg, Mississippi, violated federal law when it rescinded a job offer for an individual who applied for work as a deckhand on the basis of disability, the U.S. Equal Employment Opportunity Commission (EEOC) charged
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WASHINGTON, June 24 -- The Equal Employment Opportunity Commission issued the following news release:
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EEOC Sues Golding Barge Line for Disability Discrimination
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Federal lawsuit claims towboat and barge company rescinded job offer because of vision test results unrelated to the position
JACKSON, Miss. -Golding Barge Line, Inc., an inland towboat and barge company in Vicksburg, Mississippi, violated federal law when it rescinded a job offer for an individual who applied for work as a deckhand on the basis of disability, the U.S. Equal Employment Opportunity Commission (EEOC) chargedin a lawsuit announced today.
According to the EEOC's lawsuit, the company rescinded the offer because of the results of the applicant's pre-employment color vision test. The agency alleged that the company rescinded the offer despite the fact that color vision was not an essential function of the position the applicant sought.
"Employers cannot screen out applicants for physical requirements that have no relation to the job in question," said acting EEOC Birmingham District Director Linda Sales-Long. "Such unjustified requirements amount to illegal disability discrimination."
This alleged conduct violated the Americans with Disabilities Act, which guarantees equal employment opportunity for qualified individuals regardless of disability. The EEOC filed suit (EEOC v. Golding Barge Line, Inc., Case No. 3:26-cv-00450-CWR-ASH) in U.S. District Court for the Southern District of Mississippi after first attempting to reach a pre-litigation settlement through its administrative conciliation process.
EEOC Birmingham District Regional Attorney Marsha Rucker said, "The ADA protects a job applicant's opportunity to be considered on the basis of their merit. When an employer rejects a qualified applicant on the basis of a perceived disability, the EEOC stands ready to enforce the law."
For more information on disability discrimination, please visit https://www.eeoc.gov/disability-discrimination.
The EEOC's Birmingham District Office has jurisdiction over Alabama, Mississippi (except for 17 northern counties) and the Florida Panhandle.
The EEOC is the sole federal agency authorized to investigate and litigate against businesses and other private sector employers for violations of federal laws prohibiting employment discrimination. For public sector employers, the EEOC shares jurisdiction with the Department of Justice's Civil Rights Division. The EEOC also is responsible for coordinating the federal government's employment antidiscrimination effort. More information about the EEOC is available at www.eeoc.gov.
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Original text here: https://www.eeoc.gov/newsroom/eeoc-sues-golding-barge-line-disability-discrimination
CPSC Shares Fireworks Safety Tips as America Turns 250
WASHINGTON, June 24 -- The Consumer Product Safety Commission issued the following news release:
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CPSC Shares Fireworks Safety Tips as America Turns 250
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WASHINGTON, D.C. - As America celebrates its historic 250th Independence Day, millions of families will gather to enjoy one of the nation's most enduring traditions-fireworks. The U.S. Consumer Product Safety Commission (CPSC ) is encouraging consumers to celebrate responsibly and follow a few simple safety precautions to help prevent injuries.
Every year, fireworks cause thousands of preventable injuries. Even sparklers, which can
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WASHINGTON, June 24 -- The Consumer Product Safety Commission issued the following news release:
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CPSC Shares Fireworks Safety Tips as America Turns 250
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WASHINGTON, D.C. - As America celebrates its historic 250th Independence Day, millions of families will gather to enjoy one of the nation's most enduring traditions-fireworks. The U.S. Consumer Product Safety Commission (CPSC ) is encouraging consumers to celebrate responsibly and follow a few simple safety precautions to help prevent injuries.
Every year, fireworks cause thousands of preventable injuries. Even sparklers, which canburn at temperatures above 2,000 degrees Fahrenheit, can cause serious burns if not used carefully. As we mark this historic national milestone, CPSC wants Americans to celebrate proudly, use common sense, and take a few simple steps to prevent injuries.
For 2025, CPSC received reports of at least 15 deaths and an estimated 13,000 emergency department-treated injuries linked to fireworks misuse and malfunction. There were an estimated 1,300 injuries involving sparklers alone. The 15-to-24 age group accounted for the largest share of injuries, and burns to the hands, fingers and head were most common. Many of the most severe incidents involved devices that tipped over, malfunctioned or were used too close to people.
"For 250 years, Americans have celebrated our nation's independence with family, friends, and fireworks," said Acting CPSC Chairman Peter A. Feldman. "As we mark this historic milestone, enjoy the celebration, use common sense, and treat fireworks with the respect they deserve. On behalf of everyone at CPSC, I wish all Americans a happy, safe and memorable Independence Day."
Tips to Celebrate Safely
* Buy only legal consumer fireworks from reputable retailers. Never use homemade, altered or illegal fireworks, and always follow the instructions on the label.
* Keep children away from fireworks, including sparklers. Sparklers burn at temperatures of about 2,000 degrees Fahrenheit-hot enough to melt some metals-and can cause serious burns in seconds.
* Keep water nearby. Have a bucket of water or a garden hose ready in case of fire or to safely soak used fireworks.
* Never use fireworks while impaired by alcohol or drugs.
* Light one firework at a time, then move away quickly. Never lean over a firework while lighting the fuse.
* Never aim, throw or point fireworks at people, animals or buildings. Never hold, wear or attach fireworks to your body or clothing. Use fireworks only as directed by the manufacturer.
* Don't relight a "dud." Wait at least 20 minutes, then soak it thoroughly in water before disposing of it.
* The safest way to celebrate: Leave fireworks to the professionals and enjoy public fireworks displays in your community.
Report Unsafe Products
Consumers who encounter fireworks that appear unsafe, mislabeled, toy-like, or designed to be held while firing should report them through SaferProducts.gov. Manufacturers and distributors can report potential noncompliance through CPSC's Business Product Safety Complaint portal. Reports help CPSC identify dangerous products and support enforcement actions to protect consumers.
View CPSC's latest fireworks PSA here.
For more fireworks safety tips, visit Fireworks | CPSC.gov.
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Original text here: https://www.cpsc.gov/Newsroom/News-Releases/2026/CPSC-Shares-Fireworks-Safety-Tips-as-America-Turns-250
CFTC Chairman Selig Issues Remarks at American Cotton Shippers Association Annual Convention
WASHINGTON, June 24 -- The Commodity Futures Trading Commission issued the following remarks on June 23, 2026, by Chairman Michael S. Selig at the American Cotton Shippers Association Annual Convention:
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Good morning and thank you for that kind introduction. It is an honor to be with the men and women who provide our country and the world with clothes, textiles, and medical supplies from American grown cotton.
As is customary, I must note that the views I share today are my own as Chairman and don't necessarily reflect those of the Commission.
As we prepare to celebrate America's 250th
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WASHINGTON, June 24 -- The Commodity Futures Trading Commission issued the following remarks on June 23, 2026, by Chairman Michael S. Selig at the American Cotton Shippers Association Annual Convention:
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Good morning and thank you for that kind introduction. It is an honor to be with the men and women who provide our country and the world with clothes, textiles, and medical supplies from American grown cotton.
As is customary, I must note that the views I share today are my own as Chairman and don't necessarily reflect those of the Commission.
As we prepare to celebrate America's 250thanniversary, we have a unique opportunity to reflect on what has made this country exceptional for nearly two and a half centuries. We often think about the founders who signed the Declaration of Independence or the soldiers who fought for our freedom, but we should also remember the farmers, ranchers, producers, and agricultural businesses that have sustained this nation every step of the way.
Long before there was Wall Street, there was Main Street. Long before financial markets became digital, there were producers taking risks with the weather, crops, prices, and their livelihoods every season.
For 250 years, businesses like yours have proven that domestic cotton production is critical to our national security and our family farms and ranches are the backbone of this great nation. Whether it is cotton producers across the south or merchants seeking to buy and move product using our markets, the work you do for the United States and the world is crucial to our survival.
I was reminded of that recently during a farm tour through my home state of Florida. I spent time with cattlemen, specialty crop farmers, and sugar producers who welcomed us onto their land, showed us what modern agriculture production looks like, and explained the challenges they face on a daily basis. What struck me was how producers and agricultural businesses embrace innovation to enhance their yields, protect the environment, and improve the efficiency of their operations.
During my agriculture visits in Florida last month, I had the opportunity to experience sugarcane harvest and processing for the first time. For sugar production, the farmers explained the need for precision agriculture, regenerative soil practices, proper pest and disease control, and suitable weather conditions. They need daily burn permits from the government to burn the cane, preparing it for harvest. Sugarcane production is not an easy feat by any means, and a lot of the ideal planting and harvesting conditions are out of their control. Then there's considerations for refining, storage, and transportation of the final product.
Technology is everywhere. Farmers are incorporating precision agriculture technologies to improve crop production and yields through data analysis, specific fertilizer, nutrient, and pesticide applications, as well as to monitor the weather and control irrigation. Broadband technology enhances equipment productivity, incorporating GPS systems into combines and harvesters, which allow producers to be as efficient as possible.
As technology and data advances, our farmers have better control over their inputs - using just the prescribed amount of feed, fuel, or fertilizer - to then maximize their bottom line.
But technology cannot, and will not, replace everything. Agriculture production still requires long hours working in the heat of the summer and the chill of winter and on weekends and holidays, waking before the sun rises and often working through the dead of night. Farmers are still operating equipment to plant and harvest crops, and making decisions not based on technology - but on generations of knowledge and experience.
I saw firsthand the uphill battle they face on a daily basis. Their struggles with various input costs and weather dependent yields, emphasize the need for strong and effective risk management tools, like the futures and options we regulate at the CFTC, and advanced technology to analyze peak conditions and operate their equipment in the most efficient manner.
During my trip, we also went to a family-owned cow-calf operation, where I learned more about the cyclical nature of cattle production and how the market naturally contracts and expands over roughly a ten-year period based on the size of the herd. This process directly ties into the live and feeder cattle contracts on the exchanges and impacts prices for both the producer and consumer.
The time and planning required to have a successful herd or high yielding crop never ceases to amaze me. Seeing production agriculture firsthand from those who run these operations demonstrated the important role that innovative technology plays in keeping your farms, gins, and businesses running.
Innovation is not coming to agriculture soon. It's already here. But even with all that technology, at the center of every operation what we saw was still a family business and producers working to feed our great nation.
Technology may change the tools you all use, but it does not replace the people. At the CFTC, that matters.
Our job is not to force change for the sake of change. Our job is to make sure innovation works for the people who use these markets every day.
We can utilize the best of both worlds. We want innovation, better tools, stronger markets, and broader access. But we are not going to turn everything over to robots and blockchain systems without considering the real-world impact on farmers and producers.
Markets work best when they serve people, not the other way around. That's why at the CFTC, we're focused on balancing innovation with the day-to-day realities of American agriculture.
Many of you have probably heard me say before that the CFTC will not take a "one-size-fits-all" approach to innovation in our markets. And I will continue to stand by this.
What works for newer, innovative markets, like crypto assets and prediction markets, may not be suitable for traditional asset classes, like agriculture.
As you may know, last month, the Commission took steps to approve narrowly curated perpetual contracts on bitcoin, and similar crypto assets, so that they can be listed on a CFTC-registered exchange as a futures contract.
Perpetual contracts are a type of derivative contract that does not have an expiration date, trades continuously on a 24-7 basis, and is intended to achieve price parity through a pricing mechanism, called a funding rate.
The Commission's recent action on perpetuals is limited to crypto perpetual contracts with deep, active, and continuous spot market trading. As I hope the many forms of actions made clear, I do not believe that the perpetual instrument is suitable for all asset classes, especially in products like agriculture.
To further express this sentiment, the Commission released several additional documents in tandem with the bitcoin perpetual contract order, to make it crystal clear that if registrants want to make any moves concerning perpetual futures outside of the crypto context, they will need to speak to the Commission first.
We fully recognize and understand that 24-7 trading and the perpetual model is not a natural fit for traditional commodity markets, like agriculture, that observe limited trading hours and rely on physical delivery.
I hope this provides everyone in the agriculture community reassurance that your feedback matters to us; and that we are listening. The Commission takes the concerns of traditional market participants on perpetuals very seriously.
Another area we have taken action in is prediction markets. The products traded on these markets are frequently referred to as event contracts, and they've existed in CFTC-regulated markets for decades. Event contracts are typically structured as swaps, putting them comfortably within the CFTC's regulatory authority.
These contracts are often based on yes or no scenarios. The most widely utilized contracts are for sports, elections, and political events. But as you all probably know, there are now event contracts on traditional commodities, like agriculture, energy, and metals.
Prediction markets can serve as a critical risk management tool, mitigating risk, and providing competition in the marketplace, which can drive down costs for consumers.
However, as I stated before, it is not a "one-size-fits-all" proposition.
This is why I have strongly advocated for exchanges to limit trading hours for agricultural commodity contracts to match traditional trading hours.
I also continue to emphasize the importance of working with agriculture stakeholders and industry to provide the best product for all users that does not negatively impact the agricultural community. Your concerns are being heard.
When the contracts are drafted and executed with limited trading hours, producers have an additional tool in the toolbox to hedge their risks.
These markets affect family businesses, crop plans, and entire rural communities, and they are crucial to the survival of America's farmers. All of you in this room deserve a regulator who understands that.
At the same time, we cannot ignore the fact that the broader financial system is evolving rapidly. We saw this with blockchain technology. We saw it with crypto assets. We see it now with discussions around 24-7 trading.
The answer is not to reject innovation outright like we have seen from previous administrations. The answer is to ensure innovation remains a part of traditional finance in a way that strengthens our markets. America has the best commodity derivatives markets in the world. They are liquid, transparent, resilient, and importantly, they were built around the needs of those who use them the most.
Rest assured: although the Commission has taken recent actions in the crypto assets space, our roots are in regulating agricultural markets, and we are just as focused on ensuring that regulation works for our traditional markets as on modernizing our rules for markets on the new frontier.
Under my leadership, the CFTC will preserve those strengths while modernizing responsibly. To do so, we will make sure farmers continue to have a seat at the table. Our doors are open. If there are issues affecting your business, we want to hear about them. If clearing costs are too burdensome, let us know.
If regulations are limiting access to our markets or reducing competition, we want to better understand those impacts.
That is why I have worked to revive the CFTC's Agricultural Advisory Committee to ensure traditional market participants have input and feedback on the regulatory issues and policies affecting them everyday. Our first meeting is next month, and we are excited to sit down in a roundtable format and hear from our members, several of which are with us here today. The Ag Advisory Committee will generate a report of findings for the Commission to consider regarding topics we discuss - such as opportunities to enhance risk management tools, capital requirements such as the Basel III endgame proposal, the Commitments of Traders report, 24-7 trading, and much more.
The Ag Advisory Committee's work will be influential in guiding future decision-making at the CFTC. The people using these markets every day should help shape the future of these markets.
That brings me to another opportunity for engagement with the agricultural community. Under my leadership, we are bringing back AgCon, the Agricultural Commodity Futures Conference hosted by the CFTC and Kansas State University, which will be in Kansas City this October. AgCon is a great event for the agency to hear directly from agricultural leaders across the country on how we can best serve the agricultural industry. Mark your calendars and we hope you will join us in October.
To ensure we are prioritizing and hearing from the agricultural community, I have hired the first ever Senior Agricultural Advisor to the Chairman, and she keeps me updated on your needs and those of the agriculture industry as a whole.
From a policy making standpoint, we have been busy at the CFTC evaluating the results of the Request for Comment on the Commitments of Traders, or COT, report.
ACSA has played a key role in providing strong feedback and recommendations for improvement of the report, including publishing it twice a week. We are evaluating our internal processes and data to provide a pathway forward to enhance the report for all market participants. Thank you all for your engagement on COT.
One of my main goals here at the CFTC is to avoid the implementation of unnecessary and ineffective regulatory burdens, like those put on futures commission merchants (FCMs) and swap dealers after Dodd-Frank. We've seen the number of FCMs significantly decline, particularly those that serve agricultural producers. Farmers should not have to pay larger fees to hedge their risks just to comply with government regulations.
A great example of this is the Basel III proposal from the Biden administration. Capital rules should not unintentionally reduce liquidity, push producers and hedgers out of the marketplace, or increase the cost of clearing.
That is why I have worked together with the prudential regulators to develop a new, less burdensome Basel III proposal that aims to streamline regulations and reduce capital requirements. We are focused on ensuring continued access to American derivatives markets, because efficient access to risk management tools is critical for everyone in the room and the agricultural economy as whole. Farmers should be able to hedge risk without excessive or unnecessary expenses - that is common sense.
As we seek opportunities to enhance risk management tools for row croppers, livestock producers, and agribusinesses, we are strengthening our roots by ensuring the CFTC's relationship with the U.S. Department of Agriculture (USDA) remains strong.
Before the CFTC was formed in 1974, its functions were housed in the USDA as the Grain Futures Administration, and then the Commodity Exchange Administration, dating back to the early 1920s and 1930s. This is the time when clearing members began to report their large trades and open market positions. And the Administration began to publish annual reports of data, similar to the CFTC's current Commitments of Traders reports.
Building upon our roots, the CFTC is currently working on a draft memorandum of understanding (MOU) with the USDA. The purpose is to strengthen collaboration efforts and information sharing between the two agencies to better serve all of our constituents, which are America's farmers, ranchers, and agribusinesses.
We are also continuing to focus on ensuring there are markets available for a wide range of crops and products that producers need. Agriculture in America is diverse. The needs of cotton producers are different from livestock producers. A one-size-fits-all policymaking approach does not work, and my staff and I understand that.
That's why engagement with the industry matters, and that's why visits like the one we recently had in Florida are vital. I look forward to hopefully joining some of you on your farms, at your cotton gins, and at your businesses soon as well.
Between ongoing droughts, Brazil dumping products into our markets, cheap imports of synthetic fibers from Asia, and high input costs, I know it has been a tough year for many of you. Rest assured, the Trump administration and the CFTC realize the situation. If there are ways we can make your lives easier while still preserving market integrity and protecting participants, we will seriously consider them.
As I prepare to close, I want to reflect again on something I saw repeatedly during my recent farm tour. The balance between innovation and tradition is exactly what America, and farmers, do best. We do not move backward, but we also do not abandon the foundations that make us strong.
On the eve of our nation's 250th birthday, we're reminded that the future of agriculture will include technology, data analytics, modernized markets, and much more. But it will also continue to rely on hardworking Americans willing to wake up early, work the land, take risks, merchandise, and ship crops for not only our country, but the world.
I'm proud the CFTC will continue working to ensure our markets support both innovation and the people at the heart of American agriculture.
Thank you.
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Original text here: https://www.cftc.gov/PressRoom/SpeechesTestimony/opaselig7
