Regulators weigh innovation and regulation in the era of cryptocurrencies and artificial intelligence

Paul Atkins, acting director of the Securities and Exchange Commission, emphasized the potential of Ethereum to innovate financial markets through smart contracts and acknowledged that artificial intelligence plays an important role in improving efficiency and risk management. While most crypto tokens do not fit into traditional securities definitions, the SEC is developing a clearer regulatory framework to balance innovation with investor protection and highlighting the need for measures to prevent AI from being abused in transactions and data manipulation.