Commodity Futures Trading Commission Research and Development Modernization Act of 2025

Bill Number: H.R. 6598
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Finance and Financial Sector
Status: Introduced
Latest Action: 2026-01-13: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Last Updated: 2026-05-16T08:07:28Z

AI-Generated Summary

Purpose of the Legislation

This bill, titled the "Commodity Futures Trading Commission Research and Development Modernization Act of 2025," aims to update the Commodity Futures Trading Commission's (CFTC) powers to run research, development, demonstration, and information programs. The goal is to help the CFTC better understand and adapt to new technologies and innovations in commodity and financial markets, including their risks like cybersecurity threats, while improving education for market participants.

Key Provisions

Research and Development Programs: The CFTC must create and maintain programs to:
Study emerging technologies (e.g., AI or blockchain) and their impact on CFTC-regulated markets, including risks to data security and overall market stability.
Test these technologies in controlled settings with developers and users to assess effects on the CFTC and markets.
Recommend updates to CFTC rules to incorporate beneficial innovations.
Produce educational materials for farmers/producers, market users, and the public on regulated markets, new technologies, and compliance rules.
Research and Development Plan: The CFTC can create a formal plan outlining focus areas, planned activities, and how it will use special authorities for these programs.
Other Transaction Authority: The CFTC can enter non-traditional agreements (not standard contracts) to support these programs, bypassing some federal procurement laws (like the Office of Federal Procurement Policy Act and Competition in Contracting Act). This is allowed only if tied to a plan, uses competition where possible, and contracts aren't suitable. The CFTC must publish policies on how it uses this power.
Acceptance of Non-Monetary Contributions: The CFTC can accept free or donated non-cash items (e.g., access to facilities, data sharing, or non-commercial services) if they support a research plan and meet strict conditions to avoid conflicts of interest or the need for paid contracts. Contributions must be disclosed to Congress within 14 days, and the CFTC must return them once their purpose is fulfilled. This authority expires on October 1, 2031.
Annual Reporting: The CFTC must submit a yearly report to congressional agriculture committees detailing all such transactions and contributions, including their purpose, sources, benefits, and costs.

Significant Changes to Existing Law

The bill fully replaces Section 18 of the Commodity Exchange Act (7 U.S.C. 22), which previously outlined basic research authorities. Key updates include:

Expanding focus from general research to specific emphasis on emerging technologies and market innovations.
Introducing flexible "other transaction" authority to speed up partnerships, which wasn't previously available.
Adding rules for accepting non-monetary donations with safeguards, including a temporary sunset provision.
Requiring detailed annual reports for transparency, which builds on but strengthens prior oversight.

Potential Impacts

On Government Agencies: Enhances the CFTC's ability to innovate quickly in regulating futures and derivatives markets, potentially improving efficiency and responsiveness to tech-driven risks like cyber threats. It could reduce reliance on slow traditional contracting but increases administrative needs for plans, policies, and reporting.
On Citizens and Market Participants: Provides better education and tools for understanding modern markets, benefiting farmers, traders, and investors by promoting safer, more innovative trading environments. Indirectly supports economic stability in commodities like agriculture and energy.
On International Relations: Minimal direct impact, but stronger CFTC tech oversight could influence global standards for financial market innovations, as U.S. derivatives markets are interconnected worldwide.

Main Stakeholders Affected

CFTC and Its Staff: Gains expanded tools for research but faces new compliance and reporting duties.
Market Participants: Includes producers (e.g., farmers), traders, exchanges, and financial firms in commodity futures markets, who benefit from educational resources and adaptive regulations.
Technology Developers and Innovators: Can partner more easily with the CFTC through flexible agreements and donations, fostering collaboration on market tech.
Congressional Committees: The House and Senate Agriculture Committees receive disclosures and reports, enabling oversight.
General Public: Gains access to informational materials on market regulations and innovations.

Notable Legal, Constitutional, or Political Implications

Legal: Grants exceptions to standard federal procurement laws, allowing faster but potentially less competitive deals; includes safeguards like competition efforts and conflict-of-interest checks to ensure fairness. The non-monetary acceptance rules emphasize transparency to prevent undue influence.
Constitutional: Aligns with Congress's commerce clause authority over interstate markets; no direct challenges to separation of powers, as it empowers an existing agency with congressional oversight.
Political: Promotes bipartisan modernization of financial regulation amid rapid tech changes (introduced by Rep. Austin Scott and Rep. McDonald Rivet). The 2031 sunset on donations allows future review, balancing innovation with accountability to avoid perceptions of favoritism toward private tech firms.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Scott, Austin [R-GA-8]

Cosponsors (1)

Rep. McDonald Rivet, Kristen [D-MI-8]

Recent Actions

2026-01-13: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
2026-01-13: Referred to the Subcommittee on Conservation, Research, and Biotechnology.
2025-12-10: Referred to the House Committee on Agriculture.
2025-12-10: Introduced in House
2025-12-10: Introduced in House

Bill Versions

Commodity Futures Trading Commission Research and Development Modernization Act of 2025 — issued 2025-12-10 — PDF (9 pages)