SEC Chair Gary Gensler asks for regulation on Artificial Intelligence, triggers downfall of AI-based tokens
- Gary Gensler commented on Artificial Intelligence and likelihood of potential conflicts arising from the use of the technology in market access.
- Comments from the Securities and Exchange Commission’s chair triggered declines in AI-based token prices on Wednesday.
- Render, SingularityNET, and Fetch.ai prices dropped between 5 and 7% since Tuesday.
Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), recently shared his thoughts on the adoption of Artificial Intelligence (AI) and its application for investor and market access. Gensler’s comments highlighted the risks and potential conflicts arising from AI use and negatively influenced prices of AI-based tokens.
Also read: XRP on-chain activity signals incoming price rally as holders await SEC vs. Ripple verdict
Gary Gensler calls for regulation in Artificial Intelligence
US SEC’s crackdown on cryptocurrencies ushered in a bloodbath in the crypto ecosystem in the first week of June. The financial regulator brought lawsuits against two of the largest crypto exchanges in the ecosystem, Binance and Coinbase. Moreover, the SEC labeled nearly 60 crypto assets as securities, triggering a sell-off and steep declines in their prices.
While the crypto market reels from the negative impact of the SEC’s crackdown, Gensler has called for regulation in the AI sector. On Wednesday, the SEC Chair said in a tweet thread that investors andbrokerage firms are using AI for market access. The use of AI could result in potential conflicts, according to the SEC Chair.
Gensler called US SEC staff to make recommendations for potential rulemaking on AI.
Let’s talk digital engagement practices.
— Gary Gensler (@GaryGensler) June 28, 2023
Predictive data analytics & AI are transforming so much of our economy. Finance is no exception.
AI already is being used for call centers, account openings, compliance programs, trading algorithms, & sentiment analysis, among others.
The SEC Chair’s comments triggered a bloodbath in AI-based tokens.
Render, SingularityNET and Fetch.ai prices nosedive
AI-based tokens Render (RNDR), SingularityNET (AGIX) and Fetch.ai (FET) prices declined between 5 and 7% between Tuesday and the time of writing. The market capitalization plummeted 2.3% in the past 24 hours and stands at $2.41 billion at the time of writing.
AI-based tokens
The sell-off is likely to intensify in the short term if the SEC engages in regulation by enforcement in the AI sector.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
