• CFTC Proposes Regulations To Counter Negative Impact of Crypto and AI
• Commissioner Goldsmith Romero Warns About the Risks of Digital Asset Market
• CFTC Will Take Feedback from Public Over the Next 60 Days
CFTC Proposes Regulation to Counter Negative Impact of Crypto and AI
The Commodity Futures Trading Commission (CFTC) has proposed new regulations for risk management to account for the potential impact of “evolving technologies” like cryptocurrency and AI. Commissioner Goldsmith Romero stated on Thursday that as a result of the emergence of distributed ledger networks, various sectors have started adopting or exploring their uses. There will be a vote on the final regulation before it is implemented.
Risks in Digital Asset Market Need to be Addressed
Romero also pointed out the unique dangers of the digital asset market. Noting the recent failures of Silvergate and Signature banks. Two crypto-friendly financial institutions that had provided services to a number of well-known crypto enterprises before they went out of business earlier this year. The CFTC has released an advance notice of proposed rulemaking and will take feedback from the public over the next 60 days. After this phase is complete, a formal proposal for the ruleset will be created.
Custody Of Digital Assets Must Be Looked At
The CFTC also included custody of digital assets as one area needing attention when it comes to these evolving technologies. It’s becoming more and more apparent that AI has the ability to completely transform enterprises, and therefore services that store and process data in the cloud have become quite popular. There are “inherent risks that need to be addressed and managed effectively,” as Commissioner Romero put it.
CFTC Warns Registered Businesses About Cryptocurrency Services
Lately, the regulatory body has been busy keeping an eye on the cryptocurrency sector and going after some major players in this space. The Commodity Futures Trading Commission (CFTC) issued a warning this week to all registered businesses and applicants that it would be closely monitoring any new goods and services connected to cryptocurrency.
Voting Will Take Place After Feedback From Public
A vote on the final regulation will take place after feedback from public is obtained over next 60 days period through an advance notice by CFTC related with proposed rulemaking . This could help in addressing risks associated with usage or exploration regarding distributed ledger networks by various sectors along with implementation & management of inherent risks which need attention particularly when talking about spot markets & digital assets trading sector .