U.S. Sens. John Fetterman (D-PA) and Chuck Grassley (R-IA) introduced legislation this week that would provide stability to the Commodity Futures Trading Commission (CFTC) whistleblower program.
The legislation, the CFTC Whistleblower Protection and Program Improvement Act, would strengthen protections for whistleblowers and speed up the award process, while ensuring the commodity markets remain fair, transparent and free from fraud and manipulation, the law makers said. The bill is co-sponsored by U.S. Sens. Susan Collins (R-ME) and Raphael Warnock (D-GA).
“Whistleblowers put their jobs and often their lives on the line to call out the most serious offenses in the workplace. Zero doubt that they should be protected,” Fetterman said. “As a member of the Agriculture Committee, I’m proud to introduce this bipartisan bill with Senator Grassley to protect whistleblowers and improve the CFTC whistleblower program.”
Currently, the Customer Protection Fund (CPF) is capped at $100 million, with any fines collected after the cap is reached being sent to the U.S. Treasury Department’s general fund. Lawmakers said that as a result, as fines from whistleblower disclosures have increased in volume and value, reward disbursements have also risen, leaving the CPF depleted faster than it can be replenished due to the cap. The CFTC Whistleblower legislation would enhance protections for CFTC whistleblowers, create a separate account that funds the CFTC Whistleblower office, raise the CPF cap to $300 million and eliminate a court-created loophole prohibiting whistleblowers from receiving an award because a company declared bankruptcy.
“Since I helped get the CFTC whistleblower program up and running, I’m pleased to see it’s been a big success. This program roots out waste, fraud and abuse in the commodities trading industry and operates at no charge to the taxpayer. Now, it’s time for Congress to act so its success can continue. Our bipartisan legislation strengthens protections for patriotic whistleblowers, prevents unnecessary delays in the disbursement of whistleblower awards and ensures the CFTC whistleblower program can operate smoothly,” Grassley said.