- SEC Chairman Gary Gensler has officially taken aim at artificial intelligence.
- Gensler has indicated that he will look out for bad actors utilizing AI to manipulate markets.
- The regulator clarified that his agency remained technology-neutral and focused on outcomes rather than the tool.
Gary Gensler, the man at the helm of the U.S. Securities and Exchange Commission (SEC), has revealed that artificial intelligence (AI) is on his radar. In a recent post on X (formerly Twitter), the notorious securities regulator stated that he would closely follow developments in the AI sector and look out for any implications of securities laws.
Gensler acknowledged the transformative and revolutionary tech that AI has emerged as in sectors including finance, compliance, trading, etc. He added that the technology would also benefit science, technology, and commerce. However, the automation of human intelligence posed a grave challenge for him and his securities agency.
The securities regulator pointed out that the optimization element of AI systems considered the interest of the platform that it served, as well as the platform’s customers, which may give rise to conflicts of interest. He added that bad actors may also use AI to influence capital markets, political campaigns, or even spook the public. Gensler told his followers:
“We are technology neutral. We focus on the outcomes rather than the tool itself. Securities laws, though, may be implicated depending on how AI tech is used. Within our current authorities, we’re focused on protecting against both the micro & macro challenges of AI.”
The SEC chief clarified that under securities laws, fraud is fraud, irrespective of the field it takes place in. He added that his securities agency would continue to follow the developments in AI and other fields in order to identify and prosecute any form of fraud that harms investors or the broader capital market.
Data from CoinMarketCap showed that leading Artificial Intelligence and Big Data tokens had a visible decline in their price. Over the past 24 hours, The Graph (GRT), Render (RNDR), SingularityNET (AGIX), and Ocean Protocol (OCEAN) lost 6%, 8.3%, 7.2%, and 6.4%, respectively.
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