US Commodities Agency may revise risk rules for crypto.

The U.S. Commodity Futures Trading Commission (CFTC) has proposed an overhaul of its rules for risk management, and Commissioner Christy Goldsmith Romero said the changes should insist firms prepare themselves for crypto volatility and the risks from holding customers’ digital assets.

The CFTC issued a proposal Thursday to invite comments on possible changes to the agency’s risk management program, and Romero said in a statement that “technologies like digital assets, artificial intelligence, and cloud services, also have emerged as areas that can carry significant risk.”

“These technological advancements, with their accompanying risks, necessitate the commission revisiting our regulatory oversight, including our risk management requirements,” Goldsmith Romero said. “Integration of digital assets with banks and brokers, and the risks that could be posed, could continue to evolve.”

She also flagged the ongoing issues regarding the industry’s custody practices, saying “brokers may explore holding customer property in the form of stablecoins or other digital assets that could result in unknown and unique risks.”

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The CFTC will take public comments for 60 days on its “advance notice of proposed rulemaking” – the preliminary stage of a rule process that would have to be followed by a formal, proposed rule and then a vote on a final version.

Read More: Crypto Lawyers Share Blame for FTX, Other Disasters, CFTC Commissioner Says

Edited by James Rubin.

The US Commodity Futures Trading Commission (CFTC) has proposed changes to its risk management rules. The Commissioner, Christy Goldsmith Romero, said that firms should prepare for volatility in the crypto market and the risks associated with holding their customers’ digital assets. The CFTC issued a proposal on Thursday, inviting comments on possible changes to its risk management program. Romero stated that “technologies like digital assets, artificial intelligence, and cloud services, also have emerged as areas that can carry significant risk.” These technological advancements and the associated risks require the commission to revisit its regulatory oversight, including risk management requirements. Goldsmith Romero said that the integration of digital assets with banks and brokers, and the potential risks they pose, could continue to evolve. She also highlighted issues with the custody practices in the industry, noting that “brokers may explore holding customer property in the form of stablecoins or other digital assets that could result in unknown and unique risks.” The CFTC will take public comments for 60 days on its “advance notice of proposed rulemaking,” which is the preliminary stage of a rule process, followed by a formal proposed rule and a vote on a final version.

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