Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»ADOPTION NEWS»CFTC Commissioner Johnson Suggests Recurring AI Recommendations in DeFi
ADOPTION NEWS

CFTC Commissioner Johnson Suggests Recurring AI Recommendations in DeFi

By Crypto FlexsMay 3, 20244 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
CFTC Commissioner Johnson Suggests Recurring AI Recommendations in DeFi
Share
Facebook Twitter LinkedIn Pinterest Email

Kristin Johnson of the Commodity Futures Trading Commission proposed recommendations, including strengthening penalties to address artificial intelligence in financial markets, including decentralized finance.

In a speech delivered at the Sidley Austin and Rutgers Law School Fintech and Blockchain Symposium, Commissioner Johnson explained his concerns about AI and how it applies to DeFi.

““Deploying AI in ecosystems running on blockchain technology raises new challenges for oversight, risk management, compliance, and even enforcement,” Johnson said Friday.

AI is integrated Enter the financial markets, including brokerage apps, compliance programs, and robo-advisors. In DeFi, AI can be used for automated trading and algorithmic trading. In general, AI has raised concerns from regulators about risks such as manipulation, fraud, bias, and customer protection.

Johnson said one problem with DeFi is that there is no central party separate from traditional markets.

“The first problem is that traditional financial laws and regulations often assume specific organizational or market structures,” Johnson said. “The use of decentralized autonomous organizations and disintermediated market structures by blockchain-based platforms can move away from these assumptions in important ways. Deploying AI in DeFi systems opens up regulatory waters, especially with regard to oversight responsibilities and compliance responsibilities. Compliance with long-standing and important regulations, such as the Bank Secrecy Act, which aims to address money laundering and illicit financial threats to our financial system.”

Johnson’s AI Recommendations

Johnson called on the CFTC to take a principles-based approach to addressing AI issues overall. One of these recommendations includes increasing penalties for those who “intentionally” use AI to engage in fraud, market manipulation or evade rules.

“Malicious actors who use AI to violate our rules must be notified and sufficiently deterred from using AI to engage in fraud, market manipulation, or as a weapon to disrupt market operations or integrity,” Johnson said. added.

Johnson also recommended creating an ‘AI Fraud Enforcement Task Force’ comprised of attorneys and investigators from various offices within the CFTC’s Enforcement Division. She also recommended an interagency task force that would include other regulators, including the Federal Reserve and the Securities and Exchange Commission.

Johnson’s speech comes just days after the CFTC designated: First Chief AI OfficerTed Kaouk and other agencies said,AI day“ Next week we’ll talk about regulators’ approaches to AI.

Is Director Johnson going to the Treasury?

On Thursday, Representative Maxine Waters, a Democrat on the House Financial Services Committee, sent a letter to President Biden urging him to nominate Johnson to be Assistant Secretary of the Treasury for Financial Institutions.

Waters said Johnson brings expertise to the committee on a variety of topics, from data privacy to AI and digital assets.

“As CFTC Commissioner, Commissioner Johnson has made maintaining the integrity of our financial markets a top priority,” Waters said. “She has pressured the Commission to adopt stringent capital, collateral and margin standards. Commissioner Johnson will also lead the CFTC’s artificial intelligence (AI) work and ensure the Commission carefully considers whether existing regulations are fit for purpose or whether new regulations are in place.” We encourage evaluation.”

Commissioner Johnson declined to comment to The Block when asked about the matter.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

Gala Games improves leader board rewards and introduces preference systems.

June 20, 2025

Ether Leeum Whale starts a $ 11 million leverage betting in the 30% increase in ETH prices.

June 12, 2025
Add A Comment

Comments are closed.

Recent Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

No Altcoin Season 2025 ? Why Bitcoin Dominance Is Holding Strong In The Crypto Market

June 28, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025
Most Popular

Singlesig vs. Multisig: Bitcoin Self-custody Approaches Compared

February 15, 2024

The Bahamut Foundation launches the Bahamut Grants program with $10 million in FTN funding.

December 21, 2023

How this altcoin rose 100x in less than 24 hours

January 20, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.