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CFTC Commissioner Urges Global Regulators to Cooperate on AI and Cybersecurity

"There is a need for greater transparency and explainability, so that AI driven decisions are subject to the rigorous accountability standards that we typically apply in our supervisory oversight. And as AI becomes more embedded in core infrastructure, cyber resilience becomes a systemic concern, not just an operational one."
Kristin N. Johnson, CFTC Commissioner
"There is a need for greater transparency and explainability, so that AI driven decisions are subject to the rigorous accountability standards that we typically apply in our supervisory oversight. And as AI becomes more embedded in core infrastructure, cyber resilience becomes a systemic concern, not just an operational one."
Kristin N. Johnson, CFTC Commissioner

CFTC Commissioner Kristin N. Johnson called for stronger international cooperation to address risks from artificial intelligence ("AI") and to strengthen cybersecurity in the financial system.

In opening remarks at an international "Regulators Roundtable on Financial Markets Innovation and Supervision of Emergent Technology," Ms. Johnson said that AI "holds significant promise for making financial services more inclusive, efficient, and accessible," but warned that its deployment must be guided by "robust governance, ethical design, and global regulatory collaboration." She said that AI "can detect unusual transaction patterns in real-time" and can use behavioral data like typing speed or swipe patterns to prevent identity theft. Ms. Johnson said that AI can also help firms lower costs by "dynamically routing orders to the best venues" and enabling "real-time compliance checks rather than periodic audits."

Ms. Johnson raised concerns about risks that come with increased AI use. She warned that bias in AI models could lead to discrimination in areas like lending and insurance. She added that poor-quality data could "perpetuate historical inequalities." She also warned about overreliance on a few large AI or cloud providers, calling it a "concentration risk" that could make the system vulnerable to large-scale failure.

Ms. Johnson emphasized the danger of cyberattacks and called cyber resilience a "financial stability imperative." She reminded the international regulators that "cyber resilience is only as strong as its weakest link," and explained that because attacks can come from anywhere, "international cooperation is not optional—it is essential." To prepare for future threats, Ms. Johnson called on regulators to align their rules and enhance cross-border information sharing. She said, "[s]ilence, in the cyber domain, is a vulnerability," and urged countries to create "trusted communications channels that can activate instantly in the event of a cross-border incident."

Primary Sources

  1. CFTC: Public Statements & Remarks: Opening Remarks of Commissioner Kristin Johnson: Regulators Roundtable on Financial Markets Innovation and Supervision of Emergent Technology

Tags

Individuals
Kristin N. Johnson
Regulated Activities
Data Protection / Cybersecurity Fintech
Sub-Activity
AI / Machine Learning
Body of Law
CEA Regulation
Jurisdiction
US - Federal
Organization
CFTC, NFA, CFTC Markets
Sub-Author
CFTC