- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
![Celebrity meme coins controversy continues amid Pump.fun revenue dominance](https://editorial.fxstreet.com/images/Resources/CryptoWorldSEO3_XtraSmall.jpg)
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
![PEPE's on-chain metrics indicate potential rally after weeks of silence](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_XtraSmall.jpg)
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
![Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/ethereum_2_XtraSmall.jpg)
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
![Crypto community blasts Polkadot following report of treasury spending](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Polkadot/polkadot-150x150logo-637399979978734311_XtraSmall.png)
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.