MFA Blog

SEC and CFTC Chairs Testify at Senate Banking Committee Hearing on Mitigating Systemic Risk

Posted on July 31, 2013

Securities and Exchange Commission (SEC) Chairman Mary Jo White and Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler testified yesterday before the U.S. Senate Committee on Banking, Housing, and Urban Affairs at a hearing on mitigating systemic risk. Both Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) stressed the importance of SEC and CFTC harmonization in their opening statements. Ranking Member Crapo further commented, “If the current lack of coordination persists, it would not be surprising, to me, to hear additional calls for merging the [SEC and CFTC] into a single regulator for the securities, futures, and swaps markets.”

Regarding cooperation between the SEC and CFTC, Chairman White pointed out that the two agencies have previously worked together on a number of issues, particularly those involving OTC derivatives and global markets; however, she would like to see an “increase in the depth of engagement.” Chairman Gensler stated that the CFTC has “benefited greatly” from the SEC’s input and collaboration on swaps market reform, but later mentioned that the CFTC has a more specific domain of regulation than the SEC.

When asked how long Wall Street reform rules would take to be completed, Chairman White stressed that one of her highest priorities is to complete Dodd-Frank Act and JOBS Act rulemaking, which she hopes will come out by the end of the year.

For more information on this hearing, please visit the Committee’s website.