CFTC Commissioner Highlights AI’s Potential and Risks in Crypto Industry

Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham has expressed that artificial intelligence possesses significant potential to advance the cryptocurrency sector, while concurrently noting its capacity to escalate fraudulent activities. In a recent address at a conference centered on the future of digital finance, Pham underscored the importance of responsible innovation, emphasizing the necessity of a robust regulatory framework to safeguard investors. She elaborated that AI could be leveraged to improve trading efficiency, bolster cybersecurity measures, and identify suspicious conduct. Nevertheless, she cautioned that malicious actors might exploit this technology to devise more sophisticated and persuasive fraudulent schemes. Pham further stated that the CFTC is diligently monitoring advancements in the realm of artificial intelligence and is actively developing strategies to ensure its secure and responsible deployment within cryptocurrency markets. She also advocated for collaboration among regulatory bodies, technology developers, and industry specialists to confront the challenges presented by AI in this domain.