By Douglas Gillison
WASHINGTON, June 8 (Reuters) – The top U.S. derivatives regulator has scrapped a plan to move its staff into the U.S. Securities and Exchange Commission’s offices and will remain in its current headquarters of 30 years, according to a contract procurement notice the agency made public on Friday and sources familiar with the matter.
The Commodity Futures Trading Commission, whose current lease expires next year, had been exploring moving into the SEC’s central Washington offices, as the agencies try to harmonize their oversight of the digital currency industry, including trading and firms, according to the sources.
However, the agencies ultimately decided in April not to pursue that move, according to two people familiar with the matter. Reuters could not immediately ascertain the reason for the change of heart.
The efforts to consolidate office space marked a shift away from plans adopted following the coronavirus pandemic to move to a new, smaller and less expensive headquarters elsewhere in Washington. Plans for sharing office space with the SEC were first reported by Bloomberg in March.
The notice published Friday said the CFTC intended to award its current landlord a new five-year lease after determining that the new, dedicated headquarters space was insufficient.
A CFTC spokesperson on Monday referred queries to the notice published Friday, according to which the agency determined that remaining in its current location would provide the space needed for a growing workforce and avoid disruption as the agency takes on oversight of new industries.
The spokesperson did not address questions about the plans to consolidate office space with the SEC.
Representatives for the SEC did not immediately respond to a request for comment on Monday.
The CFTC, which has a historically low workforce headcount, is under pressure to respond to mounting concerns about insider trading connected to politics as well as an expanding mandate to police the growing prediction market and digital asset industries.
Congressional spending legislation adopted in 2022 had provided $62 million for relocation costs, such as design, construction and equipment.
It was unclear whether any of the relocation funding had already been spent or whether the CFTC would incur a penalty for not moving into the new location.
(Reporting by Douglas Gillison in Washington; Editing by Sanjeev Miglani)
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