In First Major Speech as Acting CFTC Chairman, Pham Describes Policy Priorities

By: Cheryl L. Isaac, Sarah V. Riddell, and Mallory M. Cooney

In a fireside chat at the ABA Futures & Derivatives Law Committee Winter Meeting on January 30th, Acting Chairman Caroline Pham shared her industry-friendly agenda for the Commodity Futures Trading Commission (CFTC). She described specific goals for the agency in the coming months (discussed below) and encouraged listeners to read her past dissenting statements for even more context about her priorities.

Back to Basics

To achieve her first priority—back to basics—Pham will hold weekly senior staff meetings and focus on “the 3 Ms” when considering an initiative:

• Mission: Does it serve the CFTC’s mission?
• Markets: Does it serve the markets?
• Mindset: Is the CFTC looking at the initiative with a growth mindset?

Reorganizing the CFTC

Years ago, one division was responsible for overseeing clearing houses and intermediaries. After Dodd-Frank, this division was split into two, and Pham is now proposing to reunite them (with FCMs and DCOs having shared oversight). She also contemplated the creation of a Division of Examinations, which would engage with registrants on issues of non-compliance and remediation, rather than the Division of Enforcement.

Industry Roundtables

Industry engagement was a clear priority for Pham, and she announced that the CFTC will host roundtables on three key areas of interest: (1) Digital Assets; (2) Affiliation and Conflicts of Interest; and (3) Prediction Markets. Pham clarified that she does not intend to act on digital assets until receiving direction from President Trump.

Enforcement Priorities

Acting Chair Pham stated unequivocally that her top enforcement priority will be fraud and misconduct that leads to actual consumer harm, where there is a reasonable probability of making consumers whole again. In a more recent statement, she announced the creation of two new task forces: one on Complex Fraud, and one on Retail Fraud and General Enforcement, reflecting the agency’s new priorities and replacing the prior task forces.