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CFTC Launches New Committee to Tackle AI and Blockchain in Finance

Key Takeaways

  • The CFTC formed a committee to study how emerging tech like AI and blockchain may require updates to current financial regulations;
  • Experts from public and private sectors will analyze impacts on investor protection, market reliability, and risk controls;
  • The committee's work may lead to new or revised US rules as digital assets and AI transform the finance industry.

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CFTC Launches New Committee to Tackle AI and Blockchain in Finance

The US Commodity Futures Trading Commission has created a new committee to help oversee blockchain and artificial intelligence (AI) technology.

This decision was announced on January 12 by CFTC Chair Mike Selig, who said the agency seeks to bring members of the public and private sectors to address questions related to advanced digital technology in finance.

The Innovation Advisory Committee plans to examine several issues, including how technologies such as distributed ledgers and AI could change existing rules for commodities and derivatives.

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The CFTC hopes that advice from these experts will guide its regulation as trading technology continues to evolve.

Selig said in a statement:

Innovators are harnessing technologies such as artificial intelligence, blockchain, and cloud computing to modernize legacy financial systems and build entirely new ones.

Various organizations, including government representatives, think tanks, and financial institutions, have been invited to participate.

Their main tasks will involve studying the impact of AI and blockchain on protecting investors, ensuring reliable markets, and maintaining proper risk controls for new financial products.

The committee members are also expected to discuss information security and privacy matters related to these new technologies.

Recently, the CFTC granted a no-action letter to Bitnomial Exchange, which allows it to offer event contracts and prediction markets. What does the letter cover? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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