ATA, Coalition Press for Oil Speculation Oversight Funding

A coalition of oil users that includes American Trucking Associations is urging Congressional leaders to “fully fund and defend” provisions of the financial reform law that would curb excessive speculation in oil futures.

A year after enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, “these vital regulatory initiatives are in serious jeopardy,” said a July 21 letter signed by ATA and other members of the Commodity Markets Oversight Coalition.

The House voted to fund the Commodities Futures Trading Commission — which is to enforce the oil trading reforms — at a level 44% below the $308 million the CFTC needs in order to oversee oil trades, the coalition said.

“Rules without enforcements are probably not entirely effective,” said Rich Moskowitz, ATA vice president and regulatory affairs counsel.

“So, there is a need for staff to ensure that the new regulations are indeed enforceable,” Moskowitz said. “All of those things require the agency to have an adequate budget.”

The coalition’s letter went to House Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.).