Better

Chair

Gary

Gary Gensler, the U.S. Securities and Exchange Commission (SEC) chairperson, has expressed serious concern for AI technology, calling it a serious threat to financial markets.&nbsp; Gensler Pivoting Regulatory Eye To AI 
Under the leadership of its chairperson, the SEC has shifted its focus from cryptocurrency to artificial intelligence (AI), recognizing it as a technology that "warrants the hype." Gensler, who previously dealt with crypto industry scams and fraud, now views AI as the most transformative technology of this generation and warns of the risks it may pose if not properly regulated. 
Gensler emphasizes that mass automation driven by AI can have far-reaching implications for the trillions of dollars in assets traded on SEC-regulated markets.&nbsp; 
While AI's predictive capabilities can benefit firms in better serving their clients, there's a concern that it might also be used to obscure responsibility when things go wrong, potentially leading to significant market risks. A Long-Standing Interest In AI Technology 
Gary Gensler has a well-established history with AI, dating back to 1997 when he first delved into it after witnessing Russian chess grandmaster Garry Kasparov's defeat against IBM's supercomputer, Deep Blue. His involvement with AI deepened during his tenure as an MIT professor, leading to his co-authoring a 2020 paper, “Deep Learning and Financial Stability,” that examined the risks posed by deep learning to the financial system.&nbsp; 
He claimed that existing financial laws do not have the capacity to address the dangers of algorithmic deep learning. He believes that developers can create AI functions without any limits, and these functions might work against fair market ethics. Calls for Better Regulation 
Gensler asserts that existing regulatory frameworks are ill-equipped to manage the risks associated with AI. He highlights the potential challenges of coordinating AI models among major trading houses, which could lead to increased market volatility and instability. To address the conflict, Gensler has proposed one of the first regulatory frameworks for AI, urging trading houses and money managers to assess whether their use of AI or predictive data could create conflicts of interest. No Loosening of Crypto Enforcement 
Despite pivoting the SEC's attention to AI, Gensler's focus on crypto enforcement remains strong. Numerous lawsuits involving major cryptocurrency firms, such as Ripple, Binance, and Coinbase, are currently pending.&nbsp; 
He has also faced severe criticism from leading market experts like Tim Draper and lawmakers like Ritchie Torres for his stance against crypto, calling it detrimental to the industry and the economy.&nbsp; 
As the landscape of both AI and crypto continues to evolve, market participants will be closely watching the SEC's actions and decisions. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.&nbsp;

SEC Chair Pivots From Crypto Manhunt To AI

Crypto Daily™

Other articles published on Aug 4, 2023

CRV exposure risk throws a curveball at the DeFi ecosystem: Finance Redefined

Ripple (XRP) Price Slides 22% After Failing to Break $0.85, But $XRP20 and $WSM Still Rising

Tron Price Analysis: Despite The 10% Drop, Here’s Why TRX Prices Can Surge Above $0.10

Gen Z Dominates Crypto Copy Traders: Bitget Report

Shiba Memu Announces BitMart Listing As Presale Soars Past $1.5M Milestone

Ripple Victory Paves the Way for InQubeta Bullish Momentum

Join our free newsletter for daily crypto updates!