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Briefly
- CSTC Commissioner Kristin Johnson sees AI as a double-blade sword for cryptocurrencies, offering benefits and potential risks.
- Johnson advocates a stricter penalty against fraud with a AI fraud, citing a case in which fraudsters used claims about “AI-Both” Bitcoin strategies to cheat over 23,000 victims.
- Johnson praised Trump’s CFTC President Bick Brian Quintenza and suggested that the industry specific regulation is more likely to progress through Congress.
CFTC Commissioner Kristin Johnson believes that artificial intelligence can offer tremendous benefits for the cryptocurrency sector – but it can make the risk of fraud.
Speaking on the Digiassets 2025, Johnson said that machine learning and neural networks are now analyzing huge amounts of real -time data, including prices and feelings on social networks.
While praised the potential of AI for accelerating settlement time and helping companies to achieve compliance, Johnson warned that these models could hallucinate “or miss the ability to understand certain problems in the real world.”
The risks about the violation of the bias and privacy of the data were, among other threats Johnson pointed out – and during her speech at the London conference, she warned that the AI could inflict the damage to the consumer.
“It becomes really concerned when AI is used to manipulate the market participants or directly manipulate markets,” Johnson said.
“Reinforced Penalties”
CFTC commissioner emphasized that she has been advocating for a long time for “increased penalties” for fraudsters who use AI to engage in criminal behavior and cheat on consumers who do not doubt.
She emphasized one case in which the fraudster claimed he had “ai-hungry” Bitcoin Investment strategy, with an automated bot that would facilitate exceptional yields. More than 23,000 casualties were identified and the perpetrators were subsequently ordered a return of $ 1.7 billion in restitution.
In a later session of questions, Johnson – Who announced In May, he will deviate from his role on CFTC later this year -Trump’s choice for the presidency of CFTC Brian Quintenza, who also served as a commissioner. Quintenz has not yet been confirmed after a Senate hearing Last week.
“I know Brian well,” she said. “I think he understands the ropes and how the commission works – but most importantly, he has a huge sense of value the commission can bring to markets.”
Johnson also pushed himself up against the idea that the US had performed “complete 180” when it came to cryptocurrency policy, but admitted that now we will be more likely to see that the regulation specific to the industry is moving through Congress.
“That, I would say, would definitely a different outcome from what we saw during the previous administration,” she added.
Edited Stephen Graves
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