CFTC commissioner says proposal to reassess risk management could consider crypto
Christy Goldsmith Romero, a commissioner with the United States Commodity Futures Trading Commission (CFTC), has commented on a proposal amending the government body’s Risk Management Program with respect to digital assets.
In a June 1 notice, the CFTC said it would be opening a proposed rule change for amendments to its risk management requirements applicable to swap dealers and futures commission merchants. Romero said in a public statement that the proposal could allow the commission to address risks associated with certain crypto investments, citing the failure of Silvergate Bank.
“These technological advancements, with their accompanying risks, necessitate the Commission revisiting our regulatory oversight, including our risk management requirements,” said Romero. “Existing Commission rules require that banks’ and brokers’ risk management programs ‘take into account’ risks related to lines of business. 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 futures commission merchants. Learn more: https://t.co/Vs1rb9qfey
According to the commissioner, the potential interest of brokers in the crypto derivatives market could “carry additional risks.” She pointed to the collapse of crypto exchange FTX as well as Terra and Celsius, along with areas with “rampant fraud and illicit finance.”
The CFTC will leave the proposal open for public comment for 60 days following publication in the Federal Register. After that time, the commission could introduce a formal rule change leading to a vote among its leadership.
Related: ETH can be both a security and a commodity, former CFTC commissioner says
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