INJ, GRT, AGIX, ROSE prices dip as SEC chair Gary Gensler alludes to a shifted gaze toward AI tokens

Injective (INJ), The Graph (GRT) SingularityNET (AGIX), and the Oasis Network (ROSE) token prices have suffered in the wake of recent remarks by US Securities and Exchange Commission (SEC) chair Gary Gensler. After recent regulatory jabs against cryptocurrency firms like Binance and Coinbase, the commission's helm office may have shifted focus toward Artificial Intelligence (AI).

Also Read:  Bitcoin volatility at record low as funding rate hits $200 million; signals impulse move ahead.

AI tokens suffer as US SEC chair redirects toward Artificial Intelligence

AI tokens INJ, GRT, AGIX, and ROSE have recorded notable slumps over the last 24 hours. On  average, the tokens are down between 5% to 10%, with the load-shedding exercise tracing back to after US SEC chair Gary Gensler made remarks about artificial intelligence.

INJ/USDT 1-day chart, AGIX/USDT 1-day chart, GRT/USDT 1-day chart, ROSE/USDT 1-day chart

SEC's Gensler's remarks on AI suggest regulatory interest

In a recent post on giant social media platform X, Gary Gensler addressed AI as "the most transformative tech of our time." Likening it to the internet, the SEC official wagers on the technology's ability to transform science, technology, and commerce as we know it. Nevertheless, he urges that users should remain cognizant of AI challenges.  

Narrowing down to what may affect AI crypto tokens, Gensler called out the possible conflict of interest in the field, saying that platforms must be able to prioritize customer interest over the optimization function in the AI system.

If the optimization function in the AI system is taking the interest of the platform into consideration as well as the interest of the customer, this can lead to conflicts of interest.

With this, the SEC chair articulated the agency's impartiality on technology matters, highlighting that the commission was more focused on outcomes than the tool. Where things got interesting, however, is when Gensler explains the possibility of securities laws coming into play based on how AI technology is used. In his opinion, this is part of the agency's consumer protection endeavors, both micro and macro.

With the allusion of the regulator shifting gaze to the AI space, related tokens started dipping as market players often ‘sell the rumor’.

Controversial AI-related tokens

Regarding controversies relating crypto to AI, Worldcoin (WLD) is in the front-row seats, with multiple authorities from various states calling the project out for threatening users' privacy. The project, whose brainchild is ChatGPT founder and OpenAI CEO Sam Altman, is the subject of international debates, with regulators and privacy advocates questioning its overzealous commitment to " provide universal digital identities."

With criticism still brewing, critical concerns for Worldcoin include data security and possible privacy violations, setting Worldcoin up for scrutiny and investigations by authorities from different jurisdictions. One pronounced case is in Kenya, whose Interior Minister noted:

Relevant security, financial services, and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities.

The activities in question include the project's method of data collection, iris scans, as there is no clarity as to what happens to the data. With data security and possible monetization theories, a recent report by Reuters made matters worse when the general manager of Tools For Humanity admitted that "Worldcoin could make the collected data available to corporations and governments." Noteworthy, Tools For Humanity is the company behind the Worldcoin project. Bottomline, there is a lot of  fear around the potential for user data misuse.