Commodity Futures Trading Commission (CFTC) Chairman Gensler said that most of the agency's 51 proposed rules to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act will be changed before they are submitted to a final CFTC vote.

During a hearing before the Senate Agriculture, Nutrition & Forestry Committee to discuss the status of Dodd-Frank, Gensler told Sen. Roberts, R-Kan., that “those final rules will be logical outgrowths of what we proposed.”

Committee Chairman Stabenow, D-Mich., related several concerns about the implementation of Dodd-Frank. She said she is concerned about the “timing and clarity” of the process as well as efforts to harmonize domestic and international regulations. She also said there are serious concerns that the European Union (EU) is working at a slower pace than US regulators on derivatives reform — opening the potential that the EU could adopt looser rules and attract US firms.

The CFTC proposed a rule to delay finalization of many Dodd-Frank rules from Congress' original July 16 deadline to Dec. 31.

Gensler said the delay was needed to ensure legal certainty for market participants because the Commission could not meet the July deadline. He assured the Committee that the CFTC has sufficient legal authority to “phase in” final rules because Dodd-Frank does not establish deadlines for implementing rules. He said it was “very important” that entities such as swap data repositories, clearinghouses, and swap execution facilities be “registration ready—open for business,” with their rule books in place before the trading and clearing of swaps becomes compulsory. “Mandatory clearing, trading, [and] transaction compliance would be phased in after that,” Gensler said.

Stabenow also said she was “particularly concerned” with differences in regulatory approaches taken by the CFTC and US bank regulators.

Sen. Roberts said he was concerned that the CFTC and other regulators, including the Fed and the Securities and Exchange Commission, are not coordinating the overall regulatory impact of this act.

“I'm particularly concerned … that our regulatory process is headed for trouble internationally,” he stated. He said he was concerned that the law would “raise transaction costs, stifle legitimate economic activity, increase unemployment, and create new risks and uncertainty where it didn't exist before.”