A commissioner at the Commodity Futures Trading Commission (CFTC) called for higher penalties for financial crimes that are conducted with artificial intelligence.&nbsp; 
<h2 class="wp-block-heading" id="the-cftc-commissioner-favors-higher-penalties">The CFTC Commissioner favors higher penalties</h2> 
In a speech delivered at the Technology Advisory Committee (TAC) meeting, Commissioner Kristine Johnson called for initiatives to address the proper use of AI along with the misuse of technology.&nbsp; 
She said that she supports increasing penalties for individuals who intentionally use AI tools and techniques to conduct fraud or manipulate markets. She also said that a regulatory framework based on principles is also necessary to address the prevailing use of AI in commodities markets. 
Along with other suggestions and challenges, she showed concern about the problem that may arise with She said, 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “AI may be used in a manner that makes certain well-known challenges—fraud and market manipulation—even more difficult to detect and identify.” <cite>Source: CFTC.</cite>
</blockquote> 
Johnson said that bad actors who may use artificial intelligence to violate the rules must be given notice and effectively stopped from using the technology as a weapon to conduct fraud, manipulate the market, or otherwise disturb the integrity and operations of the market. 
<h2 class="wp-block-heading" id="ai-has-the-potential-to-accelerate-crime-in-the-commodities-market">AI has the potential to accelerate crime in the commodities market</h2> 
Deputy General Monaco said that to address the new dangers that AI poses, the Department of Justice would also seek reforms to enhance sentencing where existing regulations can’t properly address the damage caused by AI misuse. As he also said, they 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “Seek stiffer sentences for offenses made significantly more dangerous by the misuse of AI.” <cite>Source: <a href="https://www.cftc.gov/taxonomy/term/4431" rel="nofollow noopener" target="_blank">CFTC</a>.</cite>
</blockquote> 
Monaco also said that penalties must correspond to the severity of the offense. He said that to apply any civil monetary penalty, the primary consideration must be the gravity of the violation and the range of other consequences resulting from the infringement.&nbsp; 
While AI can be weaponized to increase the severity of a financial crime by causing more sophisticated damage, increased penalties may also be a viable solution. 
Commissioner Johnson also said that AI is already broadly utilized in commodities markets in different areas like risk management, compliance, trading, assessments, bookkeeping and other records, and customer service. Hedging, resource optimization, and cybersecurity.&nbsp; 
The commissioner announced that CFTC had just appointed Ted Kaouk as its first Chief AI Officer, who has the required technical and leadership experience. Her office is advancing suggestions regarding the efficacy of existing regulations for increasing adoption of new technology in CFTC markets. The discussions will lead to valuable regulatory contributions, she said.

CFTC Suggests Increased Penalties for Financial Crimes Conducted with AI

Table of Contents

Cryptopolitan_News

Other articles published on May 13, 2024

Dompet Whale yang Tertidur Akhirnya Bangun, Pindahkan 1.000 Bitcoin Senilai Rp981 Milyar

Top 3 Animal Meme Coins, Roaring Success or Wild Ride?

Bitcoin Value Rises in Anticipation of Upcoming US Inflation Data

Layer 3 Degen Chain Stops Producing Blocks for 11 Hours

XRP Price Could Hit Zero, Veteran Trader Peter Brandt Warns

Ethereum Faces Hurdles at $2950 Mark

Join our free newsletter for daily crypto updates!