Christy Goldsmith Romero, Commissioner of the U.S. Commodity Futures Trading Commission’s (CFTC), said that the new rules should require firms to prepare for the volatility of crypto and the risk associated with holding digital assets for customers.

Romero stated in a press release that technologies like digital assets and artificial intelligence as well as cloud services have also emerged to be areas with significant risks.

Goldsmith Romero stated that “these technological advancements and their associated risks require the commission to revisit our regulatory oversight including our risk management requirement.” The risks associated with the integration of digital assets and banks and brokers could continue to develop.

She also highlighted the ongoing issues surrounding the industry’s custodial practices by saying that “brokers could explore holding customer properties in the form stablecoins or digital assets which could result in unknown risks.”

The CFTC is taking public comments on its “advanced notice of proposed rulemaking”, which is the first stage in a rule-making process. This will be followed by a formal proposed rule, and finally a vote for a final version.

Read more: Crypto lawyers share blame for FTX and other disasters, CFTC commissioner says

James Rubin is the editor.