CFTC Charitable Organization Exemption Act of 2025

This bill proposes to amend the Commodity Exchange Act to create a new exemption for certain charitable organizations from federal registration requirements as commodity trading advisors (CTAs) or commodity pool operators (CPOs). The legislation defines a charitable organization by referencing existing definitions in the Investment Company Act of 1940. This exemption is intended to reduce regulatory burdens on non-profit entities engaged in specific commodity-related activities. Under the proposed changes, a charitable organization, or its associated trustees, directors, officers, employees, or volunteers, would not be required to register if their advisory or pool activities are conducted exclusively on behalf of the charitable organization itself or certain related investment trusts or syndicates. However, the bill clarifies that these exempted entities would still be subject to certain enforcement proceedings under the Commodity Exchange Act. Furthermore, the legislation explicitly states that this exemption does not diminish any obligations or remedies under the Securities Act of 1933 or the Securities Exchange Act of 1934. Additionally, the bill mandates that exempted charitable organizations engaging in advisory or pool activities for specific investment trusts must provide disclosures in accordance with section 7(e) of the Investment Company Act of 1940. This ensures a level of transparency while providing regulatory relief. The overall intent is to streamline operations for charitable organizations without compromising essential oversight.