TechFlow news — On June 2, the U.S. Commodity Futures Trading Commission (CFTC) proposed a comprehensive reform of its risk management rules, aiming to better prepare firms for cryptocurrency volatility and the risks associated with holding customers' digital assets.
The commission released the proposal on Thursday for public comment, seeking input on regulatory rule revisions and reassessments of risk management requirements.
CFTC Commissioner Christy Goldsmith Romero stated in a release that technologies such as digital assets, artificial intelligence, and cloud services have emerged as areas of significant potential risk. These technological advancements and their accompanying risks necessitate a reevaluation of the commission's regulatory framework.
Furthermore, the integration of digital assets with banks and brokers, along with the associated risks, may continue to evolve.
The CFTC will also solicit public feedback over the next 60 days on its "Notice of Proposed Rulemaking," an initial phase in the rulemaking process. The final version of the rules will require a formal vote for approval.
