Intending to better regulate the crypto sector, the US regulator, Commodity Futures Trading Commission, has decided to actively include it in its plans.
In yet another reassurance from a US regulator on crypto regulation, the United States Commodity Futures Trading Commission (CFTC) published a notice on June 1 where it specified its plans to make changes to its risk management program. Crypto assets have featured as a major part of the program, with which the US regulator wants to take some active roles in regulating it.
The US CFTC has invited public opinion for the proposed changes and will accept the same for another 60 days. Until now, the risk management program was applicable to futures commission merchants and swap dealers, but it will be amended now, allowing the US regulator to assume major importance in addressing risks associated with crypto assets.
A commissioner with the US CFTC, Christy Goldsmith Romero, said, “The Commission should ensure that our risk management frameworks for banks and brokers reflect and keep pace with the significant evolution of financial stability risk. It is equally important for the Commission to be forward-looking to ensure that our risk management frameworks capture future risk as it could evolve or emerge.”
Romero indicated emerging technologies like artificial intelligence or crypto assets that have constantly changed the way how the financial services industry is regulated. Major risks emerging for crypto assets in 2022 could have also prompted the US regulator to take up this initiative, which will likely only benefit the crypto industry.