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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/u-s-regulators-caution-investors-on-ai-crypto-trading-bots" rel="noopener noreferrer nofollow">U.S. Regulators Caution Investors on AI Crypto Trading Bots</a><br></p>
<p style="text-align: justify">In the United States, the SEC and CFTC serve as market regulators for the <a href="https://en.bitcoinhaber.net/three-notable-cosmos-altcoins-garnering-attention" rel="noopener noreferrer nofollow">cryptocurrency</a> industry, but their roles often overlap, leading to confusion. The CFTC considers most altcoins as commodities, while the SEC views them differently. The CFTC has recently issued a warning to crypto investors about the risks associated with AI trading bots.</p>
<h2 id="understanding-the-cftc-s-warning">Understanding the CFTC’s Warning</h2>
<p style="text-align: justify">The rise of AI trade bots, particularly after the launch of ChatGPT in November 2022, has caught the attention of cryptocurrency investors. Despite AI’s advantages in certain areas, its performance in trading can be suboptimal. The CFTC emphasizes that AI, like humans, cannot predict the future of markets.</p>
<p style="text-align: justify">A new advisory from the CFTC, “Customer Advisory: Public Cautioned Against Artificial Intelligence Fraud,” alerts the public that AI crypto trade products, which are expected to proliferate this year, may lead to substantial financial losses for investors.</p>
<p style="text-align: justify">Melanie Devoe, from the CFTC’s education and outreach office, urges investors to be wary of deceptive practices. Scammers exploit AI’s allure to craft more believable fraudulent schemes, particularly targeting inexperienced crypto investors with promises of high returns.</p>
<p style="text-align: justify">The CFTC’s advisory comes after several U.S. state observers filed a lawsuit against an AI trade bot company claiming to generate daily returns of up to 2.2% through AI. The CFTC questions why developers would sell such a bot instead of using it to amass wealth, highlighting the implausibility of such claims.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/u-s-regulators-caution-investors-on-ai-crypto-trading-bots" rel="noopener noreferrer nofollow">U.S. Regulators Caution Investors on AI Crypto Trading Bots</a></h5>

U.S. Regulators Caution Investors on AI Crypto Trading Bots

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