During a recent meeting of the United States Commodity Futures Trading Commission (CFTC) Technology Advisory Committee (TAC), CFTC Commissioner Kristin Johnson outlined three proposals for regulating artificial intelligence (AI) technologies in U.S. financial markets. Johnson proposed the establishment of a “principles-based framework” for assessing the risks of integrating AI into financial markets, stricter penalties for intentional misuse of AI, and the creation of a task force to evaluate and harmonize guidance and regulation related to AI in financial markets.
While the government often calls for the creation of investigatory task forces and risk assessment measures, Johnson’s suggestion of imposing “heightened penalties” for crimes committed with AI would bring significant changes to the existing legal framework. In support of this proposal, Johnson referenced a speech by U.S. Deputy Attorney General Lisa Monaco, who compared AI to firearms in terms of enhancing the danger of a crime. Johnson argued that intentional misuse of AI for fraud, market manipulation, or evasion of regulations should be met with increased penalties to deter bad actors.
This speech by Commissioner Johnson follows the recent appointment of Ted Kaouk as the CFTC’s first Chief AI Officer. Kaouk previously held the position of Chief Data Officer and Director of the Division of Data at the CFTC. Congresswoman Maxine Waters, the ranking member of the Financial Services Committee, wrote a letter to President Joseph Biden recommending Johnson for the position of Assistant Secretary for Financial Institutions at the U.S. Department of the Treasury. If nominated and approved, Johnson would have an influential role in shaping legislation and policies pertaining to the U.S. financial market.
Kudos to Commissioner Johnson for emphasizing the need to harmonize guidance and regulation related to AI in financial markets. This will bring clarity and consistency, benefiting both industry players and investors.
Really?! Creating a task force to evaluate and harmonize guidance and regulation? Just another bureaucratic nightmare.
I appreciate Commissioner Johnson’s forward-thinking mindset in proposing stricter penalties for intentional misuse of AI. It’s crucial to deter bad actors and protect the financial system from fraud and manipulation.
Maxine Waters recommending Johnson for a higher position? Birds of a feather flock together, I guess. 🙄🐦
More regulation just means more red tape. Let the market deal with AI on its own. This proposal is unnecessary.
Wow, so they want to regulate AI in financial markets? This sounds like a disaster waiting to happen. 😡🤦♀️
It’s fantastic to see the CFTC taking AI so seriously! The creation of a task force to evaluate and regulate AI technologies will ensure that we can adapt to the rapid advancements in this field and keep our financial markets secure.
A “principles-based framework”? Sounds like a vague and ineffective approach to regulating AI. How about clear rules instead? 😑🚫
Imposing stricter penalties for AI crimes? How about focusing on preventing those crimes in the first place? This proposal seems misguided.
What a significant step forward! Commissioner Johnson’s focus on intentional misuse of AI and the need for heightened penalties will help deter malicious actors from exploiting the technology for fraudulent purposes.
Comparing AI to firearms? Seriously? This is such an exaggerated analogy.
Exciting news! Commissioner Johnson’s principles-based framework for assessing AI risks in financial markets is a thoughtful approach. It will help strike the right balance between innovation and risk management.