CFTC commissioners have indicated that they can put crypto on their agenda for security reasons.
CFTC commissioner Christy Goldsmith Romero noted that a proposal to review the risk management program could consider cryptocurrencies. Citing the collapses of FTX, Terra and Celsius, he said the CFTC should reassess its approach to risk management.
CFTC Says It May Begin Security Investigation By Citing The Crypto Industry Crashes Over The Last Year
The United States Commodity Futures Trading Commission (CFTC) announced in a June 1 notice that it plans to amend the risk management requirements that apply to clearing dealers and futures commission traders. CFTC commissioner Christy Goldsmith Romero stated in a public statement that the proposed changes could allow the CFTC to address the risks associated with certain crypto assets, citing the failure of Silvergate Bank as an example.
Romero made the following statements in his statements:
“The risks that come with these technological advances require us to reconsider our regulatory oversight, including our risk management requirements. Current CFTC rules require banks and brokers to ‘take into account’ the risks associated with transactions. This could include digital asset markets, for example.”
The CFTC is seeking public comment on the Risk Management Program (RMP) requirements for swap dealers and futures commission merchants. Learn more: https://t.co/Vs1rb9qfey
— CFTC (@CFTC) June 1, 2023
According to the commissioner, brokers’ interest in the crypto derivatives market may carry “additional risks.” The collapse of crypto exchanges such as FTX, Terra, and Celsius, as well as points to areas of “pervasive fraud and illegal finance.”
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