Chairman Thompson opened the hearing by calling the CFTC's lapsed authorization "unacceptable" and urged Congress to act to reauthorize the agency and clarify statutory authorities. Witnesses from industry, trade groups and advocacy organizations told the committee reauthorization is both a technical budget fix and an opportunity to update the Commodity Exchange Act for new products and risks.

The committee heard a near-consensus that the CFTC needs more resources. "It is long past time for Congress to fulfill its responsibility and reauthorize the commission," Chairman Thompson said. Ed Prosser of the Commodity Markets Council and Ben Shifrin of BetterMarkets both recommended increased funding and staffing to match the agency's emerging responsibilities.

Why it matters: The CFTC oversees derivatives that affect commodity prices used by farmers, ranchers and manufacturers. Witnesses argued underfunding and commissioner vacancies have eroded the agency's ability to police markets and to provide regulatory certainty to market participants.

Industry and consumer witnesses disagreed on priorities but agreed on the need for a full, bipartisan commission. "If the CFTC is going to be tasked with not just fulfilling its traditional responsibilities, but also take on the responsibilities for things like crypto and prediction markets, it has the resources it needs to properly oversee those markets," Ben Shifrin said.

The hearing also highlighted procedural points members said Congress should consider when drafting reauthorization language: clarifying the CFTC's research mandate, preserving principles-based regulation where appropriate, and ensuring that grants and whistleblower programs remain adequately funded.

The committee left the record open for 10 days and indicated it will consider witness submissions and follow-up questions as it prepares legislative language. The hearing concluded without votes or formal actions; members said reauthorization will be a near-term priority.