фото показано с : beincrypto.com

Wall Street broker-dealers will now have to ensure that there is no conflict of interest in the implementation of artificial intelligence (AI). The US SEC adopted new rules on July 26 mandating this process.

The United States Securities and Exchange Commission (SEC) took a new step towards regulating AI regarding Wall Street broker-dealers by approving a mandate. This mandate requires publicly traded companies to disclose hacking incidents within four days of their occurrence.

The five members of the SEC voted to adopt the new AI rule related to broker-dealers and with respect to conflicts of interest. The rules are partly inspired by the meme stock incident of 2021, which saw online platforms take advantage of the mania in stock investing.

Republican commissioners largely objected to the rules, believing they would stifle innovation. SEC Commissioner Hester Peirce, known in the crypto community as “Crypto Mom” for her pro-crypto stance, offered the following statement on technologies,

“The release does seem to suggest that investors when confronted with these technologies just melt into puddles of incompetence and so disclosure doesn’t work for them.”

The cybersecurity rules focus on disclosing security breaches within four days of the event. The SEC has been keen on preventing data theft, cyber-intrusions, and the like.

The SEC is also worried that the use of chatbots could result in hysterics with respect to the market. SEC Chair Gary Gensler has spoken about his concerns about AI in the past. And he recently said that it may engender a future where chatbots fuel market panic. Among the issues he identified were explainability, bias, and robustness in AI decision-making models.

Do crypto trading bots really work? Check out our in-depth analysis here.

He was speaking for himself and not his fellow Commissioners, but he also noted that the SEC is neutral to any technology and focuses on outcomes. Instead, the SEC focused on the implications of AI on securities laws.

Meanwhile, there continue to be developments in the SEC and Ripple Labs lawsuit. The crypto community largely celebrated the latter winning the case. Now Ripple Labs legal head Stuart Alderoty has said that an appeal by the agency could further cement its victory. He said during a TechCrunch podcast that the court of appeals could amplify the victory to an even greater extent.

Other prominent figures have also weighed in on the case. Billionaire investor and entrepreneur Mark Cuban criticized the SEC’s approach, saying that their goal was to “litigate and litigate more,” and not to protect small investors.

The post SEC Proposes AI Regulation for Wall Street Broker-Dealers to Address Conflicts of Interest appeared first on BeInCrypto.

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