Author: Brian McGleenon, THE BLOCK; Translated by: Song Xue, Golden Finance
Cryptocurrency companies turning to artificial intelligence during the long crypto winter may have something new to watch, as U.S. Securities and Exchange Commission Chairman Gary Gensler said Tuesday that he has started paying attention to artificial intelligence.
Gensler, known for leading a regulatory crackdown on cryptocurrency exchanges including Coinbase, used a lengthy post on the social network formerly known as Twitter to call artificial intelligence "the most transformative technology of our time." But he also said "bad actors" could use it to influence capital markets.
“We at @SECGov are technology neutral,” Gensler wrote. “We focus on outcomes, not the tools themselves. However, securities laws may be impacted depending on how AI technology is used. Within our current authority, we are focused on protecting against both micro and macro challenges of AI.”
The SEC chairman highlighted the use of AI in new fintech tools such as robo-advisors and AI brokerage applications.
"Artificial intelligence is used in the financial sector for account opening, compliance programs, trading algorithms, sentiment analysis, etc.," he said, noting that the technology can significantly improve customer targeting and narrow down the scope, thereby creating more risks for consumers.
“Under the securities laws, fraud is fraud,” Gensler continued. “The SEC is focused on identifying and prosecuting any fraud that could threaten investors, capital formation, or the broader markets,” he said.
The rise of AI tokens
Following the launch of ChatGPT in November 2022, many cryptocurrency companies have capitalized on the interest in AI tools, and blockchain technology and AI have merged to form a subset called AI-powered cryptocurrency.
The new token combines the innovations of both zeitgeists. The top six AI tokens by market cap are The Graph, Render, Injective, Oasis Network, SingularityNET, and Fetch.ai.
Some tokens support protocols that use blockchain to build and monetize AI applications, data, and services. Others use the combination of blockchain and AI to automate blockchain-based transactions and supply chain logistics.