S2500-118

What This Bill Does

This bill strengthens the Commodity Futures Trading Commission's (CFTC) whistleblower program by improving how the agency manages funds for customer education and administrative expenses. It increases the cap on the CFTC Customer Protection Fund from $100 million to $300 million and creates a dedicated $10 million account for customer education initiatives that can be used without annual budget limitations.

Who Benefits and How

• Whistleblowers in financial markets benefit because the larger fund (tripling from $100M to $300M cap) ensures more money is available to pay awards to individuals who report violations of commodities and derivatives trading laws.
• The CFTC gains administrative flexibility by having a separate account (up to $10M) for customer education and staff salaries that can be spent without going through annual appropriations, allowing the agency to respond more quickly to program needs.
• Consumers and investors benefit from expanded customer education initiatives aimed at helping them avoid fraud in commodities and futures markets.

Who Bears the Burden and How

No new burdens are imposed on private parties. The funds come from monetary sanctions collected from wrongdoers in CFTC enforcement cases, not from taxpayers or regulated entities.

Key Provisions

• Triples the Customer Protection Fund cap from $100 million to $300 million, ensuring adequate resources for whistleblower awards
• Creates a separate $10 million sub-account for customer education programs and administrative costs
• Removes fiscal year limitations on the education sub-account, allowing funds to remain available until expended
• Makes technical corrections to cross-references in the Commodity Exchange Act