CFTC Commissioner Christy Goldsmith Romero recommended regulators modernize its protection measures using technological advances as she warned that failure to do so would have a negative impact on American investors.
Romero, speaking at the North American Securities Administrators Association’s annual meeting in San Diego, California, said that the government’s inability to keep pace with technology would affect the most vulnerable investors. She added:
Spearheading this effort to amp up investor protections and guardrails, Romero appointed technology experts in FinTech, responsible artificial intelligence, cryptocurrency, blockchain, and cybersecurity into the CFTC’s Technology Advisory Committee (TAC).
Thank you @NASAA for a warm welcome. Read here to see my re-proposal for a National Financial Fraud Registry. I proposed this in 2019 as @SIGTARP after conducting hundreds of fraud investigations. https://t.co/mjErLobTmY
The CFTC Commissioner revealed that the TAC experts are tasked with identifying ways to instill Know Your Customer (KYC) and Anti-money Laundering (AML) processes into decentralized finance and crypto investment avenues.
The TAC is also tasked with promoting responsible artificial intelligence (AI) development. According to Romero:
Federal crypto investigations have shifted away from primarily backtracking trade activities to monitoring social media platforms such as X (formerly Twitter), Reddit and Facebook. However, Romero recommended the use of tools to aid such investigations:
The statements (tweets/posts) one shares on social media platforms “can be strong evidence of intent,” Romero added. The same platforms can be used by regulators to issue warnings about scams and protect investors.
To minimize the
Read more on cointelegraph.com