The Futures Trading Act of 1921, approved August 24, 1921. , c. 86 attempted to institute Federal regulation of grain futures contract trading by imposing a prohibitive tax on futures contracts traded on any market other than those that met the statute's requirements and were regulated by the Secretary of Agriculture. The court found it was an unconstitutional exercise of the taxing power of Congress. Congress responded to the Court's decision by passing the Grain Futures Act

Grain Futures Act

The Grain Futures Act , is a United States federal law enacted September 21, 1922 involving the regulation of trading in certain commodity futures, and causing the establishment of the Grain Futures Administration, a predecessor organization to the Commodity Futures Trading Commission.The bill that...

 in September 1922 based on the Commerce Clause

Commerce Clause

The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...

. The Grain Futures Act was held to be constitutional by the Court in Board of Trade of City of Chicago v. Olsen

Board of Trade of City of Chicago v. Olsen

Board of Trade of City of Chicago v. Olsen, 262 U.S. 1 , is a decision by the Supreme Court of the United States, in which it upheld the Grain Futures Act as constitutional under the Commerce Clause of the United States Constitution....

(1923)

See also

• Trusler v. Crooks (1926)
• List of United States Supreme Court cases, volume 259

Source

• Decision of the court courtesy of FindLaw.com