Do you: Manage a web site? Write software?
Use e-mail? Post hyperlinks?
The Commodity Futures Trading Commission (CFTC) has proposed a broad
set of rules that would require virtually anyone who uses the Internet to
discuss commodities or futures to register as a Commodity Trading Advisor.
Registration requires fingerprinting, paying fees, and subjecting yourself
to on-demand audits.
If the CFTC is allowed to enforce these regulations, it poses a much
larger threat to free speech than even the Communications Decency Act. Imagine
the broad reach of numerous federal agencies imposing their regulatory authority
online:
The Food and Drug Administration could determine who is allowed to publish
or speak on new medical treatments;
The Federal Trade Commission could demand licensing and registration
of anyone offering products or services online;
Imagine an online world regulated by government. Here are but a few examples
of what the CFTC wishes to regulate:
Republication: One of the most sweeping--and most disturbing--aspects
of the CFTC's proposed rules is its admonition that it can regulate even
those who reprint publications written by others. According to the CFTC,
information already in the public domain about commodities is commodity
trading advice subject to regulation. The Internet, of course, provides
a method of storing, transmitting, and obtaining access to vast amounts
of information with a few clicks of a mouse. Entire libraries are at one's
fingertips. According to the CFTC, however, even one who compiles information
published elsewhere on the Net or in book form--in other words, someone
who establishes a library on-line--must register as a CTA. Equally troubling
is the prospect of the CFTC scouring through the Net in an attempt to find
an unauthorized person who offers books and information about the commodities
market.
Websites: The only commodities websites exempt from registration
are those that offer "yellow pages"-type listings. But if a provider
adds any commentary, including advertising, this triggers the CFTC registration
requirement. If you provide opinions, then you must register. If you receive
compensation from any advertisers on your website, then you must register.
Even if you provide a disclaimer on the website stating that you are not
making decisions for others, it does not matter; you must still register.
Hyperlinks: Hyperlinks are one of the most prominent and important
features of the Net, and the CFTC is determined to regulate them. A hyperlink
is simply a technical connective mechanism between websites. But the CFTC
claims that any site linked to a site providing information about commodities
trading is itself providing that information and consequently must register.
The CFTC exempts registration only if a person provides a list of hyperlinks
that is the equivalent of a telephone book. Anything else, and the CFTC
cracks down--any editorial comments, even highlighting of certain names
or links could bring on regulation. In one of its most preposterous statements
concerning Internet regulation, the CFTC states that a list of hyperlinks
of persons or services that is "preselected" or "defined"
can trigger CFTC oversight. Of course, what other type of list can there
be outside of listing each and every trader in a particular area or every
source of information, making the website virtually useless?
Compensation . . . or not: The CFTC proposal is internally inconsistent.
For instance, the CFTC claims the payment of compensation triggers the
registration requirement. However, the CFTC regulates the following factual
scenario: if an individual who studies the commodities and futures markets
and shares information and opinions with three of his friends through e-mail
or other electronic communications and no others, then he need not register.
However, if that person operates a website and posts the performance data
of his friends' accounts, then he would have to register. Though the person
never received compensation from anyone but merely went "public"
with the information, he is subject to regulation. The CFTC's example demonstrates
the sweeping nature of its proposal--and its determination to bring as
many people as possible under its jurisdiction, even if it means not following
its own guidelines.
The CFTC's proposal is as disturbing as it is sweeping. It strikes at
the very core of freedom of speech and the press--and it flagrantly violates
the First Amendment. Unless the CFTC is stopped, those who disseminate pornographic
pictures over the Net could now receive greater protection than information
about pork bellies and Japanese yen.
What's being done?
How can I stop the CFTC?
Comments? Are you concerned about your activities online? |
