Summary of SJRES 9
Bill Overview
Bill Number: SJRES 9
Title: A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Commodity Futures Trading Commission relating to "Commission Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts".
Status: Introduced in Senate
Introduced Date: January 30, 2025
Classification: Resolution
Purpose and Intent
The primary intent of SJRES 9 is to formally disapprove a specific guidance issued by the Commodity Futures Trading Commission (CFTC) concerning the listing of voluntary carbon credit derivative contracts. This resolution aims to negate the rule that was published in the Federal Register on October 15, 2024, which is identified as 89 Fed. Reg. 83378.
Key Provisions
- Disapproval of CFTC Guidance: The resolution states that Congress disapproves the final guidance from the CFTC regarding voluntary carbon credit derivative contracts.
- No Force or Effect: If passed, the resolution would ensure that the aforementioned guidance has no legal force or effect.
Impact
- Affected Parties: The resolution primarily impacts the operations of the CFTC and entities involved in the trading of voluntary carbon credit derivatives. This includes financial institutions, traders, and companies engaged in carbon credit markets.
- Market Implications: By disapproving the guidance, the resolution may alter the regulatory landscape for carbon credit derivatives, potentially affecting market practices and compliance requirements.
Legislative Process
- Introduced in Senate: The resolution was introduced on January 30, 2025, and has been read twice.
- Committee Referral: It has been referred to the Committee on Agriculture, Nutrition, and Forestry for further consideration.
Related Legislation
- Companion Bill: HJRES 90 serves as a companion resolution in the House of Representatives, indicating a parallel effort to disapprove the same CFTC guidance.
Conclusion
SJRES 9 represents a significant legislative effort to challenge the CFTC's guidance on voluntary carbon credit derivatives. If enacted, it would remove the regulatory framework established by the CFTC, potentially reshaping the voluntary carbon market and its associated practices.
