Jimmy Carter photo

Futures Trading Act of 1978 Statement on Signing S. 2391 Into Law.

October 02, 1978

I have signed into law S. 2391, the Futures Trading Act of 1978. This legislation extends appropriation authority for the Commodity Exchange Act to strengthen regulation of the Nation's highly volatile futures trading industry and to improve the administration of the Commission.

The Commodity Exchange Act provides a Federal regulatory framework to ensure fair practices and honest dealing on commodity exchanges and to provide a measure of control over manipulative activity which may cause financial injury to producers and consumers. While these amendments do not reflect all of the recommendations of the administration, I believe that they provide a suitable basis for moving forward with the work of the Commission. Further, I expect that various administrative deficiencies on the part of the Commission which have come to light in recent months will be corrected.

In signing this bill, however, I must note my serious objections to a provision which requires the approval of congressional committees before a user fee system may be implemented by the Commission. This "committee approval" requirement is one of several types of legislative veto devices which I and the Attorney General view as unconstitutional, a position which I communicated to the Congress on June 21, 1978.

Accordingly, I believe that the Commission should treat this provision as a requirement that it submit the proposed fee plan to the appropriate committees, but that regulations establishing the system be promulgated as final unless the Congress, within a reasonable period of time, acts by legislation, subject to Presidential approval or disapproval, to overturn such regulations.

Note: As enacted, S. 2391 is Public Law 95405, approved September 30.

Jimmy Carter, Futures Trading Act of 1978 Statement on Signing S. 2391 Into Law. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/243663

Simple Search of Our Archives