The credits are traded, though the transactions are largely unregulated. The market has seen volatility and dramatic price spikes in recent months, prompting worries that outside forces are at work.
“We are writing to ask for the CFTC’S assistance in ensuring the integrity of the RIN market and that RIN prices adequately reflect supply and demand within the fuel supply chain and remain free of external influence,” the lawmakers wrote to CFTC Chairman Gary Gensler.
The lawmakers expressed support for the RIN system as a method to track compliance with the renewable fuel standard but said they were uncomfortable with the way they were bei
“These credits were meant to be traded among the fuel supply chain, and not as commodities through financial markets,” the lawmakers wrote.
Last month Senate Agriculture Committee Chairwoman Debbie Stabenow called upon Gensler to launch a probe into potential market manipulation, questioning whether additional regulation is needed.
Earlier this month, Scott Mixon, the CFTC’s acting chief economist, told The New York Times that the issue was agency’s radar, and regulators were considering expanding scrutiny of the market for ethanol credits.