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Witnesses told the committee the CFTC's customer-protection fund, which pays whistleblower awards and funds the whistleblower office, faces sustainability issues absent statutory or administrative fixes.
Rob Schwartz explained that the fund is used to pay awards and to run the whistleblower office; a very large award could deplete the account and force furloughs. He described a temporary congressional patch that creates a second account of up to $10 million to cover office operations but said repeated patches are an imperfect solution and recommended a permanent fix to ensure office continuity.
Dawn Stumpf and other witnesses urged Congress, in any reauthorization, to consider structural or budgetary remedies that preserve whistleblower incentives and consumer-education functions while ensuring the fund can meet large awards without interrupting operations.
Why it matters: The whistleblower program is a key tool for enforcement and public protection; instability in the fund could reduce the agency's ability to detect and prosecute fraud and to educate consumers about market risks.
The committee asked for additional details and may consider statutory changes as part of the reauthorization process.
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