© Reuters.
Investing.com – The Commodity Futures Trading Commission (CFTC) has proposed an overhaul to its risk management rules, and commissioner Christy Goldsmith Romero says the changes should insist companies prepare for cryptocurrency volatility and the risks associated with holding customers’ digital assets.
The CFTC released a proposal Thursday seeking comments on possible changes to the agency’s risk management program, and Romero said in a statement that “technologies such as digital assets, artificial intelligence and services in the cloud, have also emerged as areas that may carry significant risk.”
“These technological advances, with their attendant risks, require the commission to re-examine our regulatory oversight, including our risk management requirements,” Goldsmith Romero said. “The integration of digital assets with banks and brokers, and the risks that may come with it, may continue to evolve.
She also pointed to ongoing issues with the industry’s custody practices, saying “brokers may consider holding client assets in the form of stablecoins or other digital assets, which may introduce unknown and unique risks. .”
The CFTC will collect public comment for 60 days on its “Advance Notice of Proposed Rulemaking,” which is the preliminary stage of a regulatory process that should be followed by a formal regulatory proposal and then a vote. on the final version.