US Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero commented on a proposal to modify the government agency's risk management program for digital assets.
In a June 1 notification, the CFTC said it would revise risk management requirements applicable to swap dealers and futures commission merchants, proposing rule changes. In a public statement, Romero said the proposal would allow the committee to address the risks associated with certain crypto investments , citing Silvergate Bank's collapse.
"These technological advances, and the risks that come with them, make it necessary for the Commission to revisit our regulatory oversight, including our risk management requirements," Romero said. "Existing Commission rules require banks' and brokers' risk management programs to ' consider' risks associated with lines of business. For example, this may include digital asset markets." According to the commissioner, brokers' potential interest in the cryptocurrency derivatives market could “introduce additional risks.” She pointed to the coll apse of cryptocurrency exchanges FTX as well as Terra and Celsius, as well as an area of "rampant fraud and illicit finance."
"Evolving technologies such as digital assets, artificial intelligence and cloud services have also emerged as areas where significant risks may arise." The CFTC will open for public comment within 60 days of publication of the proposal in the Federal Register. After that , the committee can introduce formal rule changes to be voted on within its leadership. Since being sworn in in March 2022, Commissioner Romero has often served as a crypto-friendly voice within the CFTC, calling for oversight to ensure investor protection and public trust. She recommended that the CFTC reduce the anonymity of certain tokens in order to better manage the risks associated with digital assets.
