- 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
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.