- Romero also pointed out the unique dangers of the digital asset market.
- There will be a vote on the final regulation before it is implemented.
The Commodity Futures Trading Commission (CFTC) has proposed new regulations for risk management to account for the potential impact of “evolving technologies” like cryptocurrency and AI.
Commissioner Goldsmith Romero stated on Thursday that as a result of the emergence of distributed ledger networks, various sectors have started adopting or exploring their uses. It’s becoming more and more apparent that AI has the ability to completely transform enterprises, and therefore services that store and process data in the cloud have become quite popular.
There are “inherent risks that need to be addressed and managed effectively,” as the Commissioner put it. Romero pointed out the unique dangers of the digital asset market. Noting the recent failures of Silvergate and Signature banks. Two crypto-friendly financial institutions that had provided services to a number of well-known crypto enterprises. Before they went out of business earlier this year.
Implementation Post Voting
While the commissioner acknowledges the potential dangers of regulated crypto derivatives trading. She also warns that “unregulated spot markets carry additional risks.” The CFTC also included custody of digital assets. The CFTC has released an advance notice of proposed rulemaking and will take feedback from the public over the next 60 days.
After this phase is complete, a formal proposal for the ruleset will be created. There will be a vote on the final regulation before it is implemented. Lately, the regulatory body has been busy keeping an eye on the cryptocurrency sector. And going after some of its major players.
The Commodity Futures Trading Commission (CFTC) issued a warning this week to all registered businesses and applicants that it would be closely monitoring any new goods and services connected to cryptocurrency.