Summary of HJRES 90

Bill Overview

Bill Number: HJRES 90

Title: Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Commodity Futures Trading Commission relating to "Commission Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts".

Introduced On: April 3, 2025

Status: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development

Classification: Resolution

Purpose and Intent

HJRES 90 aims to formally disapprove a specific guidance issued by the Commodity Futures Trading Commission (CFTC) concerning the listing of voluntary carbon credit derivative contracts. The resolution seeks to negate the rule that was published in the Federal Register on October 15, 2024, which is identified as 89 Fed. Reg. 83378.

Key Provisions

• Disapproval of Guidance: The resolution states that Congress disapproves the CFTC's final guidance regarding voluntary carbon credit derivative contracts.
• No Force or Effect: If passed, the resolution will ensure that the CFTC's guidance will have no legal force or effect.

Impact

• Affected Entities: The primary entities affected by this resolution include:

  • The Commodity Futures Trading Commission (CFTC), which will be unable to enforce the guidance on voluntary carbon credit derivatives.
  • Market participants involved in trading voluntary carbon credits, including businesses and investors who may have relied on the guidance for compliance and trading practices.

• Market Implications: The disapproval could lead to uncertainty in the voluntary carbon market, as the guidance may have provided a framework for how these derivative contracts could be listed and traded.

Legislative Timeline

• April 3, 2025: HJRES 90 was introduced in the House and referred to the House Committee on Agriculture.
• April 18, 2025: The resolution was referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development for further consideration.

Related Legislation

• SJRES 9: This is a companion resolution that addresses similar issues regarding the CFTC's guidance on voluntary carbon credit derivative contracts.

Conclusion

HJRES 90 represents a significant legislative effort to challenge and potentially overturn the CFTC's guidance on voluntary carbon credit derivatives. The outcome of this resolution could have substantial implications for the regulatory landscape surrounding carbon markets and the trading of related financial instruments.