U.S. Commodities Agency May Change Risk Rules to Consider Crypto
The U.S. Commodity Futures Trading Commission (CFTC) has proposed an overhaul of its rules for risk management, and Commissioner Christy Goldsmith Romero said the changes should insist firms prepare themselves for crypto volatility and the risks from holding customersâ digital assets.
The CFTC issued a proposal Thursday to invite comments on possible changes to the agencyâs risk management program, and Romero said in a statement that âtechnologies like digital assets, artificial intelligence, and cloud services, also have emerged as areas that can carry significant risk.â
âThese technological advancements, with their accompanying risks, necessitate the commission revisiting our regulatory oversight, including our risk management requirements,â Goldsmith Romero said. âIntegration of digital assets with banks and brokers, and the risks that could be posed, could continue to evolve.â
She also flagged the ongoing issues regarding the industryâs custody practices, saying âbrokers may explore holding customer property in the form of stablecoins or other digital assets that could result in unknown and unique risks.â
The CFTC will take public comments for 60 days on its âadvance notice of proposed rulemakingâ â the preliminary stage of a rule process that would have to be followed by a formal, proposed rule and then a vote on a final version.
Read More: Crypto Lawyers Share Blame for FTX, Other Disasters, CFTC Commissioner Says
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