As the crypto industry continues to grow and mature, regulators are continuously taking steps to ensure that the industry is subject to appropriate oversight and regulation. The Commodity Futures Trading Commission (CFTC) has published an advanced notice of proposed rulemaking (ANPRM) seeking public comment on potential amendments to the Risk Management Program (RMP) requirements in CFTC Regulations.
These regulations are applicable to swap dealers and futures commission merchants and aim to ensure sound risk management in the derivatives markets.
The ANPRM seeks feedback on several areas of the RMP regulations, including governance and structure, the enumerated risks RMPs must monitor and manage, and the specific risk considerations RMPs must take into account. It also seeks comments on how the risk exposure report required under the RMP regulations could be improved or modified.
