CFTC Commissioner Proposes Reassessing Risk Management for Cryptocurrency


Christy Goldsmith Romero, a Commissioner with the United States Commodity Futures Trading Commission (CFTC), has recently commented on the proposed amendments to the agency’s Risk Management Program with respect to digital assets. According to the June 1 notice, a rule change is being proposed to address the risks associated with certain crypto investments, with Romero noting the failure of Silvergate Bank as an example.

In an official statement, Romero explained that the Commission must “revisit our regulatory oversight, including our risk management requirements” in response to evolving technologies, such as digital assets, artificial intelligence, and cloud services. She noted the potential interest of brokers in the crypto derivatives market and its associated risks, including the collapse of FTX, Terra, and Celsius, as well as “rampant fraud and illicit finance.” The proposed rule change is open for public comment for 60 days and could lead to a formal vote among CFTC leadership after that time.

Since being sworn into office in March 2022, Commissioner Romero has been a strong advocate for crypto-friendly regulation, calling for oversight to ensure investor protection and public trust. In April, she proposed the CFTC reduce the anonymity of certain tokens in order to better manage the associated risks.

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