Representative Proposes To Exempt Charitable Organizations From CPO Regulation

Representative Angie Craig (D-MN) introduced a bill that would amend the CEA to exempt certain persons acting for or providing advice on CFTC-regulated products to charitable organizations from regulation as CPOs and CTAs.

If enacted into law, the bill would exempt from regulation as CPOs or CTAs the directors, officers or employees of (i) a charitable organization or (ii) an investment entity excluded from regulation under the Investment Company Act by ICA Section 3(c)(10) as a charitable organization or church plan. The amendment would bring the treatment of charitable organizations under the CEA in line with their historical treatment under the Investment Company Act.

Commentary