CFTC Mulls Rules Change to Accommodate Crypto and AI Risk

The Commodity Futures Trading Commission (CFTC) recently unveiled a new proposal to revise its risk management rules to take into account the dangers of 'evolving technologies' such as cryptocurrencies and artificial intelligence.

Data storage and processing in the cloud are now widely adopted and the potential of artificial intelligence to revolutionise businesses is increasingly recognised. Alongside these advances, however, are inherent risks that must be carefully addressed and managed. The latter can also arise from the regulated trading of crypto-derivatives.

The CFTC has therefore initiated a preliminary notice of proposed rulemaking and will accept public comments for a period of 60 days. Following this initial phase, a formal proposal for regulation will be drafted.