H.J.Res.90 - 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. (119th Congress)
Summary
H.J.Res.90 is a joint resolution introduced in the House of Representatives aiming to disapprove a rule submitted by the Commodity Futures Trading Commission (CFTC) regarding guidance on listing voluntary carbon credit derivative contracts. The resolution seeks to nullify the CFTC's guidance, preventing it from having any force or effect. The disapproval is pursued under chapter 8 of title 5, United States Code, which provides a mechanism for congressional review of agency rulemaking.
Expected Effects
If enacted, H.J.Res.90 would prevent the CFTC's guidance on voluntary carbon credit derivative contracts from taking effect. This would likely create uncertainty in the market for these derivatives. It could also impact efforts to standardize and regulate carbon credit trading.
Potential Benefits
- Potentially prevents premature or poorly designed regulations on carbon credit derivatives.
- Allows Congress to exert oversight on agency rulemaking, ensuring alignment with legislative intent.
- Could foster further debate and refinement of carbon credit derivative regulations.
- May protect businesses from potentially burdensome compliance costs associated with the CFTC guidance.
Potential Disadvantages
- Creates uncertainty in the voluntary carbon credit market, potentially hindering its development.
- May delay the establishment of standardized practices and regulatory oversight for carbon credit derivatives.
- Could undermine efforts to combat climate change by reducing confidence in carbon offset mechanisms.
- Potentially weakens the CFTC's authority to regulate novel financial products.
Most Disadvantaged Areas:
Constitutional Alignment
This resolution aligns with the principle of legislative oversight of executive agencies, as implied by Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. The Congressional Review Act (chapter 8 of title 5, United States Code) provides a statutory mechanism for Congress to disapprove agency rules, reinforcing this oversight function. The resolution does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).