CFTC focuses on outreach as digital assets gain popularity among underserved groups

The US Commodity Futures Trading Commission (CFTC) sees a need to increase investor education and outreach as the market for digital assets grows and faces downturns, Commissioner Kristin Johnson said during a recent roundtable discussion.

“We must increase investor education and outreach to empower consumers and contemporaneously combat illicit activity and safeguard the integrity and stability of our financial markets,” Johnson said last week during an event focused on digital assets organized by the CFTC’s Office of Minority and Women Inclusion (OMWI) among others in the commission. 

The roundtable was the latest chance for policymakers to discuss cryptocurrencies through the lens of financial inclusion, focusing on topics such as investor protections for underserved groups and creating legislation to best serve those communities. Attendees also discussed the regulation, policy and innovation in the digital asset space. 

The roundtable also addressed the bipartisan Digital Commodities Consumer Protection Act of 2022 (DCCPA). If passed, the legislation would mandate, among other things, a CFTC study on how digital assets impact “diverse communities.” 

The CFTC commissioner’s prepared remarks also highlighted a June 1 report from the Federal Reserve Bank of Kansas City that “indicates that historically underserved groups have higher levels of participation in the crypto-investment community than the investment communities for traditional financial products.” 

“The CFTC must maintain high standards of enforcement and educational outreach to protect retail participants in the cryptocurrency market — a group that includes greater representation of younger and diverse investors,” Johnson’s prepared remarks said.