CFTC Seeks Comment on Draft of Strategic Priorities through 2026

In a draft 2022-2026 Strategic Plan ("the Plan"), CFTC Chair Rostin Behnam highlighted "emerging trends transforming global derivatives markets" including "digital asset commodities, decentralized finance (DeFi), and Environmental, Social, and Governance (ESG) Investing." He said the Plan addresses "the novel risks and opportunities these trends present," and that the Commission "must strike a balance between protecting market participants and supporting innovation."

According to the Plan, the CFTC’s strategic goals include:

1. "strengthen[ing] the resilience and integrity of derivatives markets while fostering vibrancy" by (i) using clearinghouse data, (ii) reducing global fragmentation, (iii) optimizing requirements for margin and capital and (iv) advanc[ing] policies that deepen liquidity and increase transparency;
2. effectively regulating the futures, swaps and options markets by (i) ensuring that "derivatives markets remain an effective risk management tool for end users," (ii) considering "the unique role played by agricultural community stakeholders, smaller financial institutions and FCMs," (iii) increasing protections for customer assets and (iv) "confront[ing] climate change";
3. enhancing the regulatory experience for market participants at home and globally by, among others, (i) calibrating risks and (ii) harmonizing regulations for market participants where concurrent jurisdiction between the CFTC and the SEC is found;
4. strengthening the CFTC's enforcement program; and
5. cultivation of an inclusive culture by integrating diversity, equity, inclusion and accessibility principles into all Commission operations.

Comments on the Strategic Plan are due on or before May 2, 2022.