CFTC and States Sign Information Sharing Agreement for Enforcement
The Commodity Futures Trading Commission (CFTC) and the North American Securities Administrators Association (NASAA), the organization of state securities regulators, have signed an information sharing agreement intended to facilitate state regulators to investigate and enforce the Commodity Exchange Act. The Agreement also allows the CFTC to share information about state securities laws violations. The NASAA President described the unique role of state securities regulators because “they can bring enforcement actions for both securities law and commodities law violations” which is “particularly relevant given the recent epidemic of schemes involving cryptocurrencies and other modern types of commodities.
OUR TAKE: The MOU deputizes the state regulators to enforce the commodities laws, which helps the budget-strapped CFTC. It also continues the trend of more active state securities authorities.