Remarks Of CFTC Commissioner Kristin Johnson At The Global Blockchain Business Council’s 8th Annual Blockchain Central Davos: Collaboration For The Intelligent Age

In January, we mark the launch of a number of initiatives and resolutions. A significant transition in leadership in U.S. government is taking place as I am delivering these remarks. Moments of transition offer an exceptional time for reflection on our shared goals and recommitment to the values that drive government, business, and our society.

I am glad to join for the start of the 2025 World Economic Forum in Davos and the Global Blockchain Business Council’s kick off to its Eighth Annual meeting here. Over the last three years, I have used my time at the U.S. Commodity Futures Trading Commission to foster a parallel dialogue among government agencies and market participants exploring the benefits and challenges engendered by innovation. This dialogue emphasizes issues that inspire the WEF Annual Meeting theme—Collaboration for the Intelligent Age.

Rapidly Advancing Technologies 

Rapid technological innovation has ushered in lightning speed advances in science and medicine, enabling unprecedented precision in disease mapping and diagnosis.

We have reached a watershed moment in the evolution of our markets. While predictive analytics and models have long been adopted in financial markets, cloud-based technologies, quantum computing, automation, and robotics are poised to alter market structure and the provision of services.

Artificial Intelligence and Blockchain Technologies 

Artificial intelligence and blockchain technologies have captured the popular imagination and offer some of the most diverse and accessible applications among the many nascent technologies being discussed in Davos this week. An increasingly robust conversation regarding the integration of cryptocurrencies in our markets underscores the critical need to advance this dialogue.

U.S. financial market regulators have recognized the need to enhance the channels of communication. Last year, I contributed to a request for information launched by the CFTC on the use of artificial intelligence in CFTC-regulated markets,[1] and the U.S. Department of the Treasury issued a similar request on artificial intelligence in the financial services sector.[2] The RFIs, alongside efforts of the Federal Reserve Bank, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Securities and Exchange Commission, seek to better understand use cases, priorities, and limitations of artificial intelligence in financial markets and to appreciate the risks that may be easily identified as well as those that are difficult to identify.

While these initiatives are a great start, where should we go from here? I strongly support advancing two core goals, each involving multi-stakeholder dialogues. 

Next Steps 

1. Deeper Learning and Enhanced Dialogue

First, I continue to encourage our domestic regulators and the international coalitions of regulators to advance a dialogue of learning and deeper understanding regarding each of these technologies. 

This information gathering stage fosters an open dialogue among regulators and market participants, along with other voices including other regulators, both domestic and international, academics, public interest advocates, and others.

Last year the CFTC Staff issued an advisory on market participants’ use of AI.[3] The Advisory emphasized principles common across our regulatory framework that govern all the markets that we supervise. As I explained at that time, “I believe it is important that regulators across financial markets within the United States and globally work in collaboration to establish effective regulatory approaches. . . . A collaborative approach would promote efficiency and consistency in AI regulation and ensure that regulation keeps pace with technological advancements and emerging challenges.”[4]

I have advocated for creating an interagency task force and explained “[a]ddressing the perils of AI, while harnessing its promise, is a challenge that will require a whole-of-government approach, with regulators working together across diverse agencies.”[5] As we enter into a new year, I would also emphasize that this approach promises efficiencies and a needed clarity for market participants trying to navigate diverse and sometimes divergent regulatory and compliance frameworks. These benefits extend to collaboration beyond our borders as well.

2. Enhanced Supervisory Resources 

Second, and equally impacted by collaboration, is the important role of individual firms, trade associations, and regulators in effective supervision. Self-regulation is a central value in our regulatory framework. Ensuring the stability and integrity of our markets is a team effort—a genuine public-private collaboration. We rely on our market participants to be the first line of defense in many contexts. 

Within the agency, we have faced increased demand on reduced resources. Let there be no doubt, the CFTC punches above its weight. Yet, if more is asked of our Commission, more resources must follow to ensure that we successfully achieve our mission. 

I have strongly advocated for the allocation of additional resources to train supervisory staff and better enable surveillance to combat issues such as fraud schemes that use AI to identify potential victims or carry out heists. More specifically, the CFTC Division of Enforcement should stand up an AI Task Force, led by staff with expertise in all traditionally relevant areas as well as a depth of experience and expertise in AI-based fraud.

Intellectual Leadership 

I am extremely thankful for the opportunity to serve my country at the CFTC. During my time as a lawyer in financial markets, a regulator, and an academic committed to the stability and integrity of our markets, the Commission has demonstrated significant intellectual leadership.

From the vantage of the mountain top (an unparalleled majestic view here in Davos), I will hope for the continued commitment of the Commission to intellectual leadership and Collaboration for the Intelligent Age.