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119-hr-6655119th CongressWALLET

CFTC Charitable Organization Exemption Act of 2025

Sponsored By: Representative McClain Delaney, April [D-MD-6]

In Committee

Summary

Creates a targeted exemption letting certain charitable organizations act as commodity trading advisors or commodity pool operators without registering under the Commodity Exchange Act. It ties the exemption to Investment Company Act definitions and specific excluded pools while keeping anti-fraud tools and disclosure rules in place.

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  • Charitable organizations and their personnel would be exempt from CTA/CPO registration when their advisory or pool activities relate to the specified excluded entities under the Investment Company Act. They must provide disclosure consistent with section 7(e) of that Act.
  • Small CTAs that advised fewer than 15 persons in the prior 12 months and do not hold themselves out to the public would be exempt. CTAs that are registered with the Securities and Exchange Commission as investment advisers could also qualify if their business is not primarily acting as CTAs and they do not advise pools mainly trading commodity interests.
  • The bill preserves enforcement under section 14 and keeps securities law remedies for commodity pool securities. It defines "commodity interests" to include futures, options on futures, security futures, swaps, foreign exchange, spot and forward contracts, and monies held in a trading account.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Securities law protections preserved

If enacted, nothing in this bill would remove duties or remedies under the federal securities laws. The Securities Act and Exchange Act would still apply to issuance, offer, purchase, sale, and reporting of commodity pool securities. The SEC and private parties would keep their existing rights for enforcement and lawsuits about those securities.

New rules for commodity advisers

If enacted, the bill would change who must register as commodity advisers. Small advisers would be exempt if they advised 15 or fewer people in the prior 12 months. They must not hold themselves out to the public as advisers. SEC-registered investment advisers would be exempt if advising on commodities is not their main business. They must not act as advisers to pools that mainly trade commodity interests. Dealers and some nonprofit farm groups would be exempt when advice is only incidental to their main business. The bill would also make it unlawful for an unregistered adviser or pool operator to use the mail or interstate commerce for that business. The bill lists many contract types as "commodity interests," such as futures, swaps, and foreign exchange.

Charities exempt from adviser rules

If enacted, charitable organizations would be exempt from registering as commodity trading advisers or pool operators when they advise only charities or related excluded investment vehicles. Trustees, directors, officers, employees, or volunteers acting in their duties would also be exempt in the same way. Exempt persons would still have to provide disclosure under section 7(e) of the Investment Company Act. Exempt persons would remain subject to enforcement proceedings under section 14.

Sponsors & CoSponsors

Sponsor

McClain Delaney, April [D-MD-6]

MD • D

Cosponsors

  • Rep. Messmer, Mark B. [R-IN-8]

    IN • R

    Sponsored 12/11/2025

Roll Call Votes

No roll call votes available for this bill.

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