Johnson Quoted in Washington Post on CFTC OTC Derivative Reforms

Christian Johnson, Professor of Law at the University of Utah S.J. Quinney College of Law, was quoted recently in the Washington Post on the effect of Congressional reluctance to fund the Commodity Futures Trading Commission.  Although the CFTC’s regulatory duties to regulate the over-the-counter derivatives market were dramatically increased by passage of the Dodd-Frank Act, Congress is refusing to expand its budget.  In the article, Johnson was quoted saying, “Without the necessary and required budget to meet the demands required by Dodd-Frank, Congress is effectively tying one hand of the CFTC behind its back.”  The article further quotes Johnson noting that, “If the CFTC is not able to meet its responsibilities due to budget cuts, the industry risks chaos caused by legal uncertainty and insufficient staffing.”  Johnson comments echo his prior scholarship and presentations that discuss the practical difficulties of enacting the Dodd-Frank reforms. Johnson is currently studying and working on the regulatory artibtrage concerns in the U.S. efforts to stringently regulate OTC derivatives.