WASHINGTON, June 28: With a zeal fuelled by rocketing oil and food prices, US Congress is suddenly determined to bring rampant trading under control.

But rather than looking at excess consumption and demand, Congress is entering the murky waters of trying to control soaring prices, mulling bills that could well backfire and drive funds to less transparent but more accommodative bourses offshore.

In just one of a slew of bills, the House of Representatives overwhelmingly passed largely symbolic legislation on Thursday ordering regulators to “curb immediately” excessive speculation in commodity markets.

“It opens up a set of new tools they are not using,” said Maryland Democratic Rep. Chris Van Hollen, referring to the Commodity Futures Trading Commission's emergency powers.

Chimed in House Speaker Nancy Pelosi: “The American people should not be punished at the pump for the actions of oil speculators.” Of all the bills, market players are most concerned about the Senate's End of Speculation Act which calls for an increase in margin requirements as a blunt tool to tackle price speculation. That bill has yet to be debated.

It is not clear what laws, if any, will emerge from Congress, especially with the White House adamant that it is inadequate supplies rather speculation causing the price shocks.

But a White House veto could well be overridden if enough Republicans join the angry Democratic majority, as happened with Thursday's vote ordering the CFTC to take action. —Reuters