H.R. 4895 would authorize the appropriation of whatever amounts are necessary each year through 2025 for the operations of the Commodity Futures Trading Commission (CFTC). Under H.R. 4895, the CFTC would:
Adopt new rules regarding digital commodities;
Require commodities exchanges, derivatives clearing organizations, and swap execution facilities to safeguard their data and periodically test their automated systems;
Expand enforcement to cover violations that occur outside the United States;
Expand whistleblower protections; and
Codify increased net worth, income, and portfolio standards for investors who wish to trade in certain sophisticated financial instruments including hedge funds.
Using information from the CFTC, CBO expects that the agency’s cost of operations would not change substantially under H.R. 4895. Accordingly, CBO estimates that the authorization in the bill would equal the same amount each year as the CFTC received in 2019 ($268 million), with an increase each year through 2025 to account for expected inflation. Assuming appropriation of the estimated amounts and based on historical spending patterns, CBO estimates that implementing the bill would cost $1.1 billion over the 2020-2024 period (see Table 1) and $340 million after 2024. The costs of the legislation fall within budget function 370 (commerce and housing credit).