According to Cointelegraph, CFTC Commissioner Christy Goldsmith Romero has called for regulators to modernize investor protection measures using technological advances. Speaking at the North American Securities Administrators Associationâs annual meeting in San Diego, California, Romero warned that failure to do so would negatively impact American investors, particularly the most vulnerable ones.
To spearhead this effort, Romero appointed technology experts in FinTech, responsible artificial intelligence, cryptocurrency, blockchain, and cybersecurity into the CFTCâs Technology Advisory Committee (TAC). The TAC experts are tasked with identifying ways to instill Know Your Customer (KYC) and Anti-money Laundering (AML) processes into decentralized finance and crypto investment avenues. They are also responsible for promoting responsible artificial intelligence (AI) development.
Romero recommended the use of tools such as tracing funds, tracing crypto, using the blockchain, using link analysis, using social media, and data analytic tools in federal crypto investigations. She also proposed the formation of the National Financial Fraud Registry, a centralized record of all crimes and fines related to financial fraud. The registry would help investors background check for any ongoing investigations or fines for fraud imposed on companies. Romero believes that such a one-stop-shop platform could help investors deter financial frauds and improve their safety.
