Christy Goldsmith Romero, commissioner of the United States Commodity Futures Trading Commission (CFTC), has commented on a proposed amendment to the government body’s Risk Management Program with respect to digital assets.
In a June 1 announcement, the CFTC said which would open a proposed rule change to modify its risk management requirements applicable to swap dealers and futures commission dealers. Rosemary said in a public statement that the proposal could allow the commission to address the risks associated with certain crypto investments, citing the failure of Silvergate Bank.
“These technological advances, with the risks they entail, make it necessary for the Commission to review our regulatory oversight, including our risk management requirements”Romero said. “Current Commission rules require bank and broker risk management programs to ‘take into account’ risks related to business lines. That could include, for example, digital asset markets.”
The CFTC is seeking public comment on the Risk Management Program (RMP) requirements for swap dealers and future commission merchants. Learn more:
—CFTC (@CFTC) June 1, 2023
The CFTC seeks public comment on the Risk Management Program (RMP) requirements for swap traders and futures commission traders. Have more information:
According to the commissioner, the possible interest of intermediaries in the crypto derivatives market could “carry additional risks”. He pointed to the collapse of cryptocurrency exchange FTX, as well as Terra and Celsius, along with areas of “rampant fraud and illicit funding.”
“Evolving technologies such as digital assets, artificial intelligence, and cloud services have also emerged as areas that can carry significant risk.”
The CFTC will leave the proposal open for public comment within 60 days of its publication in the Federal Register. After that time, the commission could introduce a formal change in the rules that would lead to a vote among its leaders.
Since taking office in March 2022, Commissioner Romero has often served as a pro-crypto voice at the CFTC, calling for oversight to ensure investor protection and public trust. In April, she proposed that the CFTC reduce the anonymity of certain tokens to better manage the risks associated with digital assets.
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