Over the past few years, the Commodity Futures Trading Commission (CFTC) Whistleblower Program has faced a funding crisis which threatens to undermine the success of the program. While a 2021 law provided a short-term fix which saved the program from collapse, the need for a long-term fix remains.
Introduced in July, the bipartisan CFTC Whistleblower Fund Improvement Act of 2023 provides the long-term fix by raising a cap placed on the Fund used to finance the program. Without using any taxpayer dollars, the bill ensures that the CFTC can continue to pay out whistleblower awards and finance the operations of the Whistleblower Office.
The crisis facing the CFTC Whistleblower Program is due to its success. When Congress established the program in 2010, it did not predict that it would grow in the ways that it has. It did not foresee that it would bring in such massive sanctions, and correspondingly pay out such large whistleblower awards. The funding cap instituted by Congress is thus incongruous with the current state of the program.
“The CFTC whistleblower program should not be a victim of its own success. Without congressional action, the whistleblower reward fund could drain faster than it replenishes,” said Senator Chuck Grassley (R-IA), one of the bill’s principal cosponsors.
Like the SEC Whistleblower Program, the CFTC Whistleblower Program offers monetary awards to qualified whistleblowers, individuals who voluntarily report original information about commodities law...
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