Securities Regulation Daily Wrap Up, CFTC NEWS AND SPEECHES—Commission’s OIG report documents leadership transitions, workforce reductions, (May 28, 2026)

By Suzanne Cosgrove

The report to Congress recognizes the potential implementation of the CLARITY Act and related crypto legislation as a “FY 2026 management challenge.”

The CFTC’s Office of Inspector General (OIG) has issued its Semiannual Report to Congress for October 1, 2025, to March 31, 2026, a period during which the Office of Audits completed and published the Fiscal Year 2025 CFTC Financial Statement and FY 2025 Customer Protection Fund Financial Statement audits.

The audit team also worked with the Council of Inspectors General on Financial Oversight in a review of the internal operations of the Financial Stability Oversight Council designation of nonbank financial companies.

During the reporting period, the CFTC OIG Office of Evaluations announced one evaluation of the CFTC’s Division of Clearing and Risk Program and completed an internal management review of the office’s audit division.

Outstanding recommendations. In an introduction to the report, Inspector General Christopher Skinner noted the previous reporting period identified 28 outstanding recommendations from three separate audits and one evaluation. During this reporting period, the OIG issued no additional recommendations.

The agency implemented corrective actions to address three outstanding recommendations. As a result, 25 outstanding recommendations were pending at the close of the latest reporting period.

“We continue to work closely with the agency to close out recommendations as corrective actions are implemented,” Skinner said in the report.

Vacancies noted. The Office of Evaluations announced a review of CFTC’s Division of Clearing and Risk (DCR)’s Policies and Procedures on March 31, 2026. The review seeks to evaluate whether DCR’s policies and procedures support mission objectives and can adapt to the evolving nature of the regulatory risk environment. Related fieldwork began in April 2026, and the evaluation is projected to finish in July 2026.

CFTC OIG maintains an Office of Audits, an Office of Evaluations, and an Office of Investigations, but it had five vacancies as of the conclusion of the report, the document shows, including a position for a business operations manager, assistant IG for investigations, senior auditor, program analyst and investigator.

“Recent transitions in leadership across the agency as well as the expanding and evolving regulatory environment have left many divisions traversing uncertain territories due to the risk of policies and procedures not adapting in step,” the report found.

“Additionally, some divisions may have lost valuable skill sets due to the Deferred Resignation Program option, federal government-wide Reductions-in-Force and other significant human capital factors,” the report continued. “Well-documented policies and procedures ensure consistent reviews and analysis, reduce risk of non-compliance with laws and regulations, and ensure integrity and reliability of a division’s efforts in meeting the agency’s mission.”

Other challenges. In keeping with the Reports Consolidation Act of 2000, the OIG is required to identify significant management and performance challenges facing the Commission and provide a brief assessment of the Commission’s progress in addressing those challenges.

The CFTC’s most significant management and performance challenges for FY 2026, the report stated, were: 1) pending legislation: regulation of digital assets; 2) the expiration of customer protection fund expense account (the Whistleblower Program); 3) CFTC headquarters relocation; 4) human capital management; and 5) maturing enterprise risk management and maintaining a proactive cybersecurity posture.

Addressing the issue of pending legislation, the report noted that during the prior reporting period, the House of Representatives passed H.R. 3633, the Digital Asset Market Clarity Act of 2025 (CLARITY Act), which was sent to the Senate in September 2025.

During the current reporting period, the Senate continued its consideration of the CLARITY Act and issued a bipartisan discussion draft. In addition, CFTC OIG monitored relevant presidential and Commission issuances, including the President’s National AI Legislative Framework.

“We recognized potential implementation of the CLARITY Act and related legislation as an FY 2026 management challenge,” the report stated, but added. “We look forward to the Commission’s further involvement with these emerging issues, as well as our oversight role.”

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