Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), recently highlighted the challenges of regulating artificial intelligence (AI) and cryptocurrencies in the financial sector.
He stressed the need for regulatory frameworks to adapt to the rapid advancements in these technologies.
Gensler compared AI’s transformative impact to that of the internet and electricity, noting its integral role in finance and the ethical concerns surrounding potential conflicts of interest. He warned that the use of similar AI models across firms could pose systemic risks, especially if reliant on large cloud providers.
Regarding cryptocurrencies, Gensler stated that blockchain technologies are not inherently incompatible with existing securities laws but emphasized that crypto projects must meet disclosure requirements to protect investors. He reaffirmed the SEC’s commitment to enforcing regulations in the sector, especially given past investor losses due to a lack of oversight.
Defending the SEC’s enforcement approach, Gensler highlighted the importance of robust regulations and disclosure, drawing comparisons to the 1920s market conditions. His term lasts until 2026, during which he aims to lower investor costs, enhance market resilience, and advance regulatory reform.
Kazakhstan is taking a major step toward integrating digital assets into its national financial strategy, with plans to establish a state-managed crypto-reserve.
The first week of July brings several important developments in the United States that could influence both traditional markets and the cryptocurrency sector.
Ric Edelman, one of the most influential voices in personal finance, has radically revised his stance on crypto allocation. After years of cautious optimism, he now believes that digital assets deserve a far larger share in investment portfolios than ever before.
In the case involving Terraform Labs and its co-founder Do Hyeong Kwon, the defense has asked the Federal Court for the Southern District of New York to extend the deadline for pretrial filings by two weeks, pushing it beyond the original date of July 1, 2025.