CFTC Commissioner Urges Modernization of Investor Protection Measures

CFTC Commissioner Christy Goldsmith Romero emphasizes the need for modernizing investor protection measures to combat financial fraud and protect American investors.

Posted 10 months ago in Security

Speaking at the North American Securities Administrators Association’s annual meeting in San Diego, California, Romero emphasized that the government’s inability to keep pace with technology would affect the most vulnerable investors. To combat this, she proposed the formation of the National Financial Fraud Registry — a centralized record of all crimes and fines related to financial fraud.Romero appointed technology experts in FinTech, responsible artificial intelligence, cryptocurrency, blockchain, and cybersecurity into the CFTC’s Technology Advisory Committee (TAC). The experts in the TAC will identify ways to instill Know Your Customer (KYC) and Anti-money Laundering (AML) processes into decentralized finance and crypto investment avenues. The committee is also tasked with promoting responsible artificial intelligence (AI) development.According to Romero, federal crypto investigations have shifted from primarily backtracking trade activities to monitoring social media platforms such as X (formerly Twitter), Reddit, and Facebook. The statements shared on these platforms can provide strong evidence of intent and can be used by regulators to issue warnings about scams and protect investors.The proposed National Financial Fraud Registry would serve as a one-stop-shop platform for investors to background check ongoing investigations or fines for fraud imposed on companies. By having access to a centralized record, investors can take preventive measures and deter financial frauds.Romero urged both federal and state officials to collaborate in improving investors' safety. In April, she also encouraged crypto companies, exchanges, and decentralized finance (DeFi) platforms to verify the digital identity of users to manage risks effectively.Preserve this moment in history by collecting this article as an NFT and show your support for independent journalism in the crypto space.

Last updated 9/12/2023, 3:08:16 AM

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