WASHINGTON, D.C.— Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the release of Better Markets’ new Fact Sheet, “Origins of the CFTC: Protecting the Integrity of the Derivatives Markets.”

“As the Commodity Futures Trading Commission (CFTC) commemorates its 50th anniversary, it’s a moment to acknowledge the agency’s critical role in overseeing the U.S. derivatives markets. The CFTC has been tasked with ensuring transparency and stability in markets that directly affect the prices of everyday essentials such as groceries, gasoline, airline tickets, and housing. This milestone isn’t just a celebration of past achievements. It’s a reminder that understanding our regulatory history is essential to navigating the financial innovations of the future.

“Building on this reflection, we must confront emerging challenges that echo the past. The introduction of digital assets and event-based contracts, particularly those tied to sports outcomes, blurs the line between regulated financial instruments and speculative gambling. This scenario is reminiscent of the era of ‘bucket shops,’ where speculative betting masqueraded as legitimate trading, leading to public distrust.

“As financial innovation accelerates, the CFTC must draw lessons from its history to navigate the fine line between fostering innovation and preventing market exploitation. Without diligent and expert oversight, markets can be manipulated to the detriment of producers, consumers, investors, and the broader economy.”

The Fact Sheet is available here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.