• Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), recently expressed his concerns about the potential impact of Artificial Intelligence (AI) on financial markets.
• He suggested that if major tech companies monopolize AI development for financial market applications, it could be potentially destabilizing for the global economy.
• Gensler has requested the agency’s staff to propose regulations addressing how AI can be optimized without hurting investors.
Gary Gensler is the Chairman of the US Securities and Exchange Commission (SEC). He recently went after the entire crypto industry as SEC Chair and filed lawsuits against major crypto companies to establish regulations.
Gensler’s Speech at National Press Club
In a recent speech at the National Press Club in Washington, Gary Gensler expressed his concerns regarding artificial intelligence in the financial domain. He stated that if major tech companies monopolize its development for financial market applications, it could potentially destabilize the global economy. Gensler highlighted that AI may heighten financial fragility and lead to herding behavior where individual actors make similar decisions due to receiving identical signals from a base model or data aggregator.
Risks Associated with Ongoing AI Boom
Gensler also discussed various risks associated with AI including mass automation which could affect trillions of dollars worth of assets traded on SEC-monitored markets. He concluded by saying that despite being troubled by scams, hacks, and money laundering, AI poses even more substantial financial risks to US residents compared to cryptocurrencies.
Gensler Requests Regulations Proposals
Gensler has requested the agency’s staff to propose potential regulations that address how AI could be optimized to benefit intermediaries without hurting investors. These regulations will help ensure investor protection against potential threats stemming from artificial intelligence technology in finance and other related industries.
To conclude, Gary Gensler is shifting focus from cryptocurrency regulation to artificial intelligence regulation as he believes it poses more risks than cryptocurrencies do for US residents. Through proposed regulations he hopes to optimize AI usage while protecting investors from any threats posed by this technology in finance and other related industries