CFTC Division of Enforcement Creates Two New Task Forces

On June 29, 2023, the U.S. Commodity Futures Trading Commission (CFTC) published a press statement to inform that its Division of Enforcement has established two new task forces:
The first task force, called the Cybersecurity and Emerging Technologies Task Force, will focus on cybersecurity issues and emerging technologies, including artificial intelligence. One key objective of the task force is to ensure that registrants have sufficient cybersecurity controls to protect themselves, their systems, and customer information. Other goals include „prosecuting hacks and intrusions“ aimed at manipulating commodities markets, and investigating technology-enabled theft of non-public information. The task force will also explore the role of emerging technologies such as AI in violating regulations and ensure proper supervision of their use.
The second task force, known as the Environmental Fraud Task Force, aims to combat environmental fraud and misconduct in derivatives and relevant spot markets, such as voluntary carbon credit markets. It will investigate fraud related to the environmental benefits of purchased carbon credits and address material misrepresentations made by registrants regarding environmental, social, and governance (ESG) products or strategies (green washing).
According to the CFTC, both task forces consist of attorneys and investigators from various offices within the CFTC’s Division of Enforcement. They will be responsible for prosecuting cases, acting as „subject matter experts“, and coordinating efforts with other divisions and offices within the CFTC.
The creation of these task forces reflects the CFTC’s commitment to proactive and vigorous action in addressing evolving threats and misconduct in the areas of cybersecurity and emerging technologies, as well as environmental fraud and greenwashing. The aim is to protect derivatives markets and ensure the integrity of the commodities industry altogether.