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
— CFTC (@CFTC) June 1, 2023
According to the commissioner, the potential interest of brokers in the crypto derivatives market could “carry additional risks.” She pointed to the collapse of…
