H.R. 6598: Commodity Futures Trading Commission Research and Development Modernization Act of 2025

The **Commodity Futures Trading Commission Research and Development Modernization Act of 2025** aims to enhance the authority of the Commodity Futures Trading Commission (CFTC) to undertake various research, development, demonstration, and information programs. Here is an overview of its key components:

Purpose of the Act

The primary objective is to modernize the CFTC’s capabilities to respond to emerging technologies and innovations in the commodities and financial markets. This includes improving their understanding and oversight of these areas to better enhance market efficiency and security.

Research and Development Programs

The Act allows the CFTC to:

• Establish ongoing research and development programs to understand new technologies and their implications for the markets.
• Create environments for exploring these technologies in collaboration with developers and users.
• Identify necessary adaptations in administration to accommodate innovations.
• Develop educational materials for stakeholders to understand regulations and emerging technologies in the market.

Research and Development Plan

The CFTC is empowered to adopt specific research and development plans that identify:

• Areas of interest for investigation.
• Activities to pursue regarding these interests.
• How the authority under the plan will be utilized.

Other Transaction Authority

The Act provides the CFTC with the authority to enter into transactions beyond traditional contracts to facilitate research activities. This is permitted when:

• Such a transaction supports the research and development plans.
• A competitive process is used where appropriate.
• A traditional contracting method is not feasible or appropriate.

Written policies will dictate how this authority is applied.

Acceptance of Non-Monetary Contributions

The CFTC may accept non-monetary contributions, such as services and access to facilities, to support its research programs. Conditions include:

• Contributions must align with research and development plans.
• Acceptance cannot compromise the Commission's integrity or fairness.
• Disclosure of accepted contributions must be made to relevant congressional committees.
• This authority will expire on October 1, 2031.

Annual Reporting Requirements

Each year, the CFTC is required to report to congressional agriculture committees on:

• Transactions undertaken under the new authority and accepted contributions.
• The utility of these transactions for the CFTC and its markets.
• A breakdown of contributions in terms of their source and nature.

Relevant Companies

None found