Gary Gensler, Chairman of the US Securities and Exchange Commission, said in his latest statement that the focus should be on the auditing of artificial intelligence, and then it will come to cryptocurrencies.
Gensler noted that AI is “the most transformative technology of this generation” and poses significant challenges and opportunities for markets and regulators. Gensler explained that after the topic of artificial intelligence, cryptocurrencies will come later:
“First there is the auditing of artificial intelligence. We can come to cryptocurrencies later”
He warned that AI could introduce new risks of coordination, manipulation, bias, and accountability in the financial system, and that the SEC must keep up with the fast pace of innovation.
He said many DeFi projects claim to be decentralized, but are actually controlled by a few people who make a profit by selling thoughts to the public.
Mark Perlow, San Francisco-based partner at law firm Dechert, had this to say about Gensler’s statements:
“One lesson the SEC may have learned from cryptocurrencies is that if they lag behind the industry in regulation, the industry will steer the discussion.”
*Not investment advice.
