Rostin Behnam

Rostin Behnam
Chair of the Commodity Futures Trading Commission
Incumbent
Assumed office
January 21, 2021
PresidentJoe Biden
Preceded byHeath Tarbert
Commissioner of the Commodity Futures Trading Commission
Incumbent
Assumed office
September 6, 2017
PresidentDonald Trump
Joe Biden
Preceded byMark Wetjen
Personal details
Political partyDemocratic
EducationGeorgetown University (BA)
Syracuse University (JD)

Rostin Behnam (born February 16, 1978) is an American lawyer and government official who currently serves as the 15th chairman of the Commodity Futures Trading Commission (CFTC). Prior to leading the CFTC, he served as one of five-member CFTC commissioners, having been nominated on July 13, 2017 by President Donald Trump to fulfill a term expiring June 19, 2021. Behnam was unanimously confirmed by the Senate on August 3, 2017, and sworn in as commissioner on September 6, 2017.[1] On January 21, 2021, the commission members unanimously elected Behnam to be acting chairman following President Joe Biden' s inauguration and the resignation of Heath Tarbert, who served as chairman since July 15, 2019.[2] Behnam was re-nominated by President Biden as a commissioner, and simultaneously nominated to chair the agency for a new 5-year term through June 19, 2026.[3] Behnam was unanimously confirmed by the Senate on December 15, 2021,[4] and sworn in as CFTC's chairman and chief administrative officer on January 4, 2022.

Prior to his CFTC service, Behnam served as senior counsel on the Senate Committee on Agriculture, Nutrition, and Forestry for U.S. Senator Debbie Stabenow of Michigan. He has also worked on a proprietary equities trading desk, practiced law in New York City and with the Bureau of Securities in the state of New Jersey’s Office of Attorney General, and co-founded a short-lived regional commuter airline.

Behnam’s terms as CFTC Commissioner and chairman coincided with a historical period of growth and innovation in the derivatives industry sparked by the rapid development and adoption of decentralized finance (DeFi). His time at the CFTC also straddled the COVID-19 pandemic, which along with the Russian invasion of Ukraine, severe and catastrophic weather events, surging inflation, and related and responsive monetary policy, corresponded with record level volatility in the global commodity markets throughout the early 2020s.

An advocate for the financial reform efforts born out of the Global Financial Crisis, Behnam supported completion and ongoing revision of rules implementing the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. Since joining the commission, Behnam has led initiatives to address ongoing and emerging risks related to LIBOR reform, climate-related market risk, retail participation in the digital asset commodity markets, risk concentration within financial market infrastructure, and diversity, equity, and inclusion (DEI) in the CFTC and larger derivatives and financial markets. He is a leading advocate for federal regulation of the digital asset markets, calling on the White House for leadership[5] and testifying before Congress on the subject.[6]

Early life and education

Behnam was born in Stratford, New Jersey, and raised in Franklin Lakes, New Jersey, along with his elder brother and sister. Behnam’s parents, both of Persian descent, worked in medicine. His mother was a midwife.[7]

Government service

Behnam’s major responsibilities included advising Senator Stabenow on the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related matters affecting the Treasury Department, the U.S. prudential regulators[8] (safety and soundness), and the Securities and Exchange Commission. Behnam also focused on legislative issues regarding agricultural biotechnology and crop protection issues.

Behnam worked alongside Chairwoman Stabenow during her successful effort in leading passage of the bipartisan 2014 U.S. Farm Bill.[9] During that time, Behnam focused on the new and evolving risks for the agricultural economy and strengthening legacy risk management programs. Stabenow’s unique focus on risks related to climate change, highlighted by the numerous climate related disasters agricultural producers and rural communities faced leading up to 2014,[10] helped garner support for the inclusion of a wide range of programs in the final law. The 2014 Farm Bill enhanced the federal crop insurance program,[11] revised commodity programs, and retroactively authorized multiple disaster programs beginning in FY2012.[12] Many of these same programs were strengthened and included in the 2018 U.S. Farm Bill.[13]

Behnam played a key role in drafting the 2016 GMO labeling bill.[14]

Behnam is recognized as an early advocate for exploring climate-related financial risk[15] in the derivatives markets and larger economy and the appropriate role for market regulators.[16] Recognizing that weather and climate present risks to economic productivity, financial stability, and household wealth, Behnam led the creation of the Climate-Related Market Risk Subcommittee[17] within the CFTC’s Market Risk Advisory Committee to examine climate-related impacts on the financial system. The Subcommittee’s efforts resulted in the September 2020 release of the report Managing Climate Risk in the U.S. Financial System,[18] the first of-its-kind effort from a U.S. government entity.[19] Behnam followed its release with testimony before the House Select Committee on the Climate Crisis[20] and presentations in other venues focused on climate-related market risk and incorporating sustainability resilience into U.S. and global financial systems.[21]

Behnam established the Climate Risk Unit or “CRU” within the CFTC to focus on the role of the derivatives markets, and the CFTC as a market regulator, in understanding, pricing, and addressing climate-related risk.[22] Climate change has been identified as an emerging threat to U.S. financial stability,[23] and Behnam asserts that the CFTC’s unique mission focused on risk mitigation and price discovery puts the agency on the front lines of mitigating climate change.

In December 2023, Behnam participated in COP28 where he delivered keynote remarks on voluntary carbon markets and announced the CFTC’s proposal of the first federal guidelines for voluntary carbon credit derivative contracts.[24] Behnam’s announcement was praised by Treasury Secretary Janet Yellen and John Kerry, U.S. Special Envoy on Climate.

Personal life

Behnam lives in Baltimore with his wife and three children.[25]

References

Public Domain This article incorporates public domain material from Chairman Rostin Behnam. Commodity Futures Trading Commission. Retrieved February 9, 2024.

  1. ^ Rechtschaffen, Alan N. (May 21, 2019), "The History of the CFTC", Capital Markets, Derivatives, and the Law, Oxford University Press, pp. 366–396, doi:10.1093/oso/9780190879631.003.0017, ISBN 978-0-19-087963-1
  2. ^ Basar, Shanny (January 22, 2021). "CFTC Names Rostin Behnam Acting Chairman". Markets Media. Retrieved October 27, 2023.
  3. ^ House, The White (September 13, 2021). "President Biden Announces 10 Key Nominations". The White House. Retrieved October 27, 2023.
  4. ^ Markham, Jerry (January 1987), "Commodity Futures Trading Commission", Faculty Books
  5. ^ Rostin Behnam, Push Us Past Inertia—How the White House Can Help Mainstream FinTech, Bloomberg Law (May 21, 2019), INSIGHT: Push Us Past Inertia—How the White House Can Help Mainstream FinTech (bloomberglaw.com); Statement of Chairman Rostin Behnam on the President’s Executive Order on Digital Assets | CFTC
  6. ^ See, e.g., Rostin Behnam, Chairman, CFTC, Testimony of Chairman Rostin Behnam Regarding “Examining Digital Assets: Risks, Regulation, and Innovation” before the U.S. Senate Committee on Agriculture, Nutrition, and Forestry (Feb. 9, 2022), Testimony of Chairman Rostin Behnam Regarding “Examining Digital Assets: Risks, Regulation, and Innovation” | CFTC; Rostin Behnam, Chairman, CFTC, Testimony of Chairman Rostin Behnam Regarding the Legislative Hearing to Review S.4760, the Digital Commodities Consumer Protection Act at the U.S. Senate Committee on Agriculture, Nutrition, and Forestry (Sept. 15, 2022), Testimony of Chairman Rostin Behnam Regarding the Legislative Hearing to Review S.4760, the Digital Commodities Consumer Protection Act at the U.S. Senate Committee on Agriculture, Nutrition, and Forestry | CFTC; Rostin Behnam, Chairman, CFTC, Testimony of Chairman Rostin Behnam Regarding  “Why Congress Needs to Act: Lessons Learned from the FTX Collapse” at the U.S. Senate Committee on Agriculture, Nutrition, and Forestry (Dec. 1, 2022), Testimony of Chairman Rostin Behnam Before the U.S. Senate Committee on Agriculture, Nutrition, and Forestry | CFTC;Testimony of Chairman Rostin Behnam Before The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets, U.S. House Committee on Agriculture | CFTC; Testimony of Chairman Rostin Behnam Before The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets, U.S. House Committee on Agriculture | CFTC
  7. ^ "Remarks of Commissioner Rostin Behnam before Energy Risk USA, Houston, Texas | CFTC". www.cftc.gov. Retrieved October 30, 2023.
  8. ^ See 7 U.S.C. 1a(39) Definition: prudential regulator from 7 USC § 1a(39) | LII / Legal Information Institute (cornell.edu)
  9. ^ Agricultural Act of 2014, Pub. L. No. 113-79, 128 Stat. 649 (2014)
  10. ^ See 2012–2013 North American drought - Wikipedia, Hurricane Sandy - Wikipedia
  11. ^ Crop Insurance Provisions in the 2014 Farm Bill (P.L. 113-79) - EveryCRSReport.com
  12. ^ Overview of Farm Safety Net Programs (congress.gov)
  13. ^ Agricultural Improvement Act of 2018, Pub. L. No. 115-334, 132 Stat. 4491 (2018).
  14. ^ National Bioengineered Food Disclosure Standard, Pub. L. No. 114-216, 130 Stat. 834 (2016).
  15. ^ Warmbrodt, Zachary (May 8, 2023). "Coming soon for carbon". POLITICO. Retrieved February 9, 2024.
  16. ^ Davenport, Coral (June 11, 2019). "Climate Change Poses Major Risks to Financial Markets, Regulator Warns". The New York Times. ISSN 0362-4331. Retrieved February 9, 2024.
  17. ^ "CFTC Commissioner Behnam Announces the Establishment of the Market Risk Advisory Committee's Climate-Related Market Risk Subcommittee and Seeks Nominations for Membership | CFTC". www.cftc.gov. Retrieved February 9, 2024.
  18. ^ https://www.cftc.gov/sites/default/files/2020-09/9-9-20%20Report%20of%20the%20Subcommittee%20on%20Climate-Related%20Market%20Risk%20-%20Managing%20Climate%20Risk%20in%20the%20U.S.%20Financial%20System%20for%20posting.pdf
  19. ^ "CFTC's Climate-Related Market Risk Subcommittee Releases Report | CFTC". www.cftc.gov. Retrieved February 9, 2024.
  20. ^ "Testimony of Commissioner Rostin Behnam before the House Select Committee on the Climate Crisis | CFTC". www.cftc.gov. Retrieved February 9, 2024.
  21. ^ "A Sustainable Future: Rostin Behnam, US CFTC Acting Chairman | Man Institute". www.man.com. Retrieved February 9, 2024.
  22. ^ "CFTC Acting Chairman Behnam Establishes New Climate Risk Unit | CFTC". www.cftc.gov. Retrieved February 9, 2024.
  23. ^ "Financial Stability Oversight Council Releases Factsheet on Climate-Related Financial Risk Efforts". U.S. Department of the Treasury. January 25, 2024. Retrieved February 9, 2024.
  24. ^ "US regulator floats guidelines for unruly emissions offset market". www.ft.com. Retrieved February 9, 2024.
  25. ^ "Chairman Rostin Behnam". www.cftc.gov. Retrieved December 2, 2022.