The Commodity Futures Trading Commission [CFTC] has proposed a re-modelled rule-set for risk management. The U.S. was in the of a banking crisis during the initial few months of this year. Before the bank failures, the federal bank regulatory agencies issued a joint statement outlining the “key risks” associated with bank involvement in the crypto asset sector.
In a statement, Commissioner Christy Goldsmith Romero chalked out that the existing Commission rules require that banks’ and brokers’ risk management programs “take into account” risks related to lines of business, like digital asset markets. Romero mentioned that she’s is currently interested in public comment on Risk Management Program [RMP] regulations. It covers areas like governance and structure, the risks RMPs must monitor and manage, and the specific risk considerations RMPs must take into account. The Commission intends to use the information and comments received to “inform potential future agency action, such as a rulemaking, with respect to the RMP Regulations.”
Romero specifically underlined that technologies like crypto, AI, and cloud services have emerged as areas that can carry “significant…
