The CFTC submitted a proposal to revamp risk management regulations. The put forth proposal puts emphasis on incorporating potential risks posed by emerging cryptocurrencies, as highlighted by a commissioner.
Commissioner Christy Goldsmith Romero has stated that the U.S. Commodity Futures Trading Commission (CFTC) is suggesting a comprehensive revision of its risk management regulations. These proposed changes aim to ensure that firms are adequately equipped to handle the volatility associated with cryptocurrencies and the potential risks arising from the custody of customers’ digital assets.
On Thursday, the CFTC released a proposal seeking feedback on potential revisions to its risk management program. Commissioner Romero emphasized the importance of addressing the significant risks associated with emerging technologies such as digital assets, artificial intelligence, and cloud services.
Commissioner Goldsmith Romero highlighted the need for the commission to reassess its regulatory oversight and risk management requirements in light of technological advancements and their associated risks. She emphasized the evolving nature of the risks posed by the integration of digital assets with banks and brokers.
In addition, she raised concerns about the custody practices within the industry, noting that brokers might consider holding customer assets in stablecoins or other digital assets, which could introduce unfamiliar and distinct risks. The CFTC has opened a 60-day period for public comments on its “advance notice of proposed rulemaking,” the initial phase of a rulemaking process that involves proposing a formal rule and conducting a final vote.
