This bill updates the rules governing the Commodity Futures Trading Commission's (CFTC) advisory committees, subjecting them to the Federal Advisory Committee Act.
David Taylor
Representative
OH-2
This bill, the CFTC Advisory Committee Improvement Act of 2025, updates the rules governing the Commodity Futures Trading Commission's (CFTC) advisory committees. It mandates the establishment of new committees to advise the CFTC on its regulatory activities and subjects them to the Federal Advisory Committee Act. Existing advisory committees may continue operating under their current structure until September 30, 2026, or until their charter is renewed.
CFTC Mandates Advisory Committee Overhaul, Applying Federal Transparency Rules by Late 2026
The “CFTC Advisory Committee Improvement Act of 2025” isn’t about trading pork bellies or bitcoin futures; it’s about making sure the people advising the Commodity Futures Trading Commission (CFTC) are following the rules. This bill updates Section 2(a)(15) of the Commodity Exchange Act to formalize how the CFTC gets advice.
The Rules of the Advisory Club
Essentially, the bill mandates that the CFTC must establish advisory committees to discuss and communicate about its regulatory activities. Think of these committees as the industry experts who sit down with the regulators to explain what’s actually happening on the ground—whether it’s in agriculture, energy, or finance. The big change here is procedural: these new committees must now operate under the Federal Advisory Committee Act (FACA). FACA is the rulebook that ensures federal advisory bodies are transparent, requiring things like public notice for meetings, open sessions, and public access to meeting records. For the average person, this means more sunlight on the discussions that shape the rules of the financial markets.
Transitioning to Transparency
If you run a business or participate in markets regulated by the CFTC, the immediate impact is minimal, but the long-term shift is toward greater formality. The bill includes a transition clause that’s all about continuity. Any existing advisory committee—one that was set up before this new law—gets a grace period. They can keep operating under their old rules until their charter comes up for renewal or until September 30, 2026, whichever happens first. This staggered start prevents the CFTC from having to shut down all its current advisory work overnight, ensuring that the flow of expert advice doesn't get interrupted while they update the paperwork. It’s a practical move to manage change, ensuring that market participants who rely on these committees can continue their work while the transition to FACA compliance takes place.