Gary Gensler touched the discussion of cryptocurrencies in his latest statement during a speech about AI sector regulation.
The United States Securities Exchange Commission (SEC) is a top American financial regulator, known for harsh crypto regulatory enforcement actions. This year, the US SEC sued nearly a half dozen crypto companies in the wrong way, as the regulatory body initiated lawsuit action but failed to provide any clarity over the rules.
In the latest, the SEC chairman Gary Gensler said that the regulatory body will focus on auditing the Artificial intelligence (AI) sector over any other sector.
According to Gensler, the AI sector has several opportunities for the participants but at the same time poses significant challenges, as the AI technologies can be misused in several ways e.g. coordination, manipulation, bias, and accountability in the financial system.
In short, the SEC boss believes that it is better to regulate the AI sector and further touch the regulation work on the cryptocurrencies sector.
“First there is the auditing of artificial intelligence. We can come to cryptocurrencies later,” the SEC boss said.
In the past Gensler criticized the Crypto Defi sector badly. According to the SEC Chairman, the majority of the crypto Defi projects claim to be decentralized but in reality, only a few numbers of people control the platform and further sell crypto tokens against the public, only for personal benefits.
The latest speech by the US SEC is a hint for the US crypto companies that the SEC is going to stop its harsh enforcement action for a few months.
Ripple vs SEC
Last month, San Francisco’s headquartered fintech company Ripple (XRP) secured a very big victory in the court against the US SEC.
Because of the Ripple vs SEC lawsuit outcome, the majority of the crypto companies & entrepreneurs believe that the SEC agency will now stop its harsh regulatory actions against crypto companies.
Some insiders claimed that the SEC agency may again appeal in the court against the court judge’s ruling and further wants to bring Ripple into the legal conflict.
On the other hand, Ripple executives believed that it will take years of time for the SEC to appeal again, as per laws.
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