HR6598-119

What This Bill Does

The Commodity Futures Trading Commission Research and Development Modernization Act rewrites section 18 of the Commodity Exchange Act. It requires the CFTC to maintain research, development, demonstration, and information programs that help the agency understand emerging technologies, technological advances, cybersecurity, data security, systemic risk, and their effects on commodity and financial markets under CFTC jurisdiction. The Commission may adopt research and development plans identifying areas of interest and activities, use other transaction authority when ordinary contracts are not feasible or appropriate, accept covered non-monetary contributions, publish policies for using that authority, create educational materials for producers, market users, and the public, and submit annual reports on activities, transactions, contributors, and safeguards.

Who Benefits and How

The CFTC benefits from clearer authority to test and study innovations before they reshape derivatives and commodity markets. Technology developers, market participants, exchanges, clearing organizations, fintech firms, and data-security specialists may benefit from structured collaboration with the agency and from educational materials that clarify regulatory expectations. Producers and market users benefit indirectly if CFTC research improves oversight of cybersecurity, data security, systemic risk, and emerging market tools.

Who Bears the Burden and How

CFTC staff bear the operational burden of creating research programs, adopting plans by rule or order, publishing transaction policies, screening non-monetary contributions, guarding against conflicts of interest, and reporting annually to Congress. Developers and market participants that collaborate with the CFTC may need to meet competitive-process, disclosure, cybersecurity, and data-handling conditions. The Commission also must ensure research activities support statutory purposes rather than becoming informal procurement or preferential access.

Key Provisions

• Requires CFTC research, development, demonstration, and information programs for emerging technologies affecting commodity and financial markets.
• Authorizes research and development plans that identify CFTC interest areas, activities, and uses of other transaction authority.
• Allows CFTC to use other transaction authority when ordinary contracts are not feasible or appropriate and to accept covered non-monetary contributions.
• Requires written policies, educational materials for market users and the public, and annual reports on research activities and safeguards.