1 year ago
The House Financial Services Subcommittee connected Digital Assets, Financial Technology, and Inclusion convened a pivotal proceeding connected Dec. 5, to perceive from high-ranking representatives from national agencies, including the Federal Reserve, Securities and Exchange Commission (SEC), and the Office of the Comptroller of the Currency (OCC), spoke connected the expanding power of caller technologies specified arsenic integer assets, distributed ledgers, and artificial quality successful reshaping the fiscal sector.
The proceeding underscored the escalating request for robust supervision of integer assets, a greater absorption connected AI risks, and a cautious attack toward implementing distributed ledger exertion successful national banking.
In an opening statement, Subcommittee Chair French Hill said:
“Today, caller and emerging technologies similar integer assets, distributed ledgers, quantum computing, and greater usage of artificial quality are dominating discussion.”
He said that, for the existent hearing, the committee has asked members from authorities agencies to attest astir their enactment connected innovation successful those areas.
Agencies code crypto issues
Representatives from galore national agencies weighed successful connected issues related to cryptocurrency. Michael S. Gibson, Director of Supervision and Regulation astatine the Federal Reserve, said his bureau precocious announced a novel activities supervision program. This programme aims to negociate risks associated with cryptocurrency, Distributed Ledger Technology (DLT), and intricate technology-driven collaborations with fintech firms extracurricular of accepted banking
Meanwhile, Valerie A. Szczepanik, Director of the Securities and Exchange Commission (SEC)’s FinHub, said her radical has spent a “significant magnitude of attraction and resources” connected distributed ledger exertion (DLT) and integer assets. Szczepanik underscored that the SEC’s FinHub squad has developed a broad usher to assistance marketplace players successful determining if integer assets suffice arsenic securities.
Donna Murphy from the Office of the Comptroller of the Currency (OCC) noted the agency’s prudent attack to implementing Distributed Ledger Technology (DLT) successful national banking. She added that fewer OCC-supervised banks person launched crypto products and asserted that the fiscal manufacture is alternatively turning toward tokenizing real-world assets and liabilities arsenic an exertion for distributed ledgers.
AI risks
Several agencies discussed artificial quality (AI) risk. Gibson testified that banks person begun utilizing AI successful fraud monitoring and lawsuit service, adding that AI carries risks astir “data challenges, explainability, bias, cybersecurity, and user protection. He besides testified that the Federal Reserve is moving with different agencies to show and larn much astir banks’ usage of AI.
Meanwhile, Donna Murphy said that the OCC recognizes the banking sector’s increasing involvement successful AI applications and described respective operational benefits. She besides noted that banks tin usage AI to supply lawsuit work and products.
Mark Mulholland, a subordinate of the FDIC, acknowledged President Joe Biden‘s recent enforcement order connected AI information and said that the bureau is reviewing the order. He said that the FDIC is examining the usage of AI successful its ain interior operations but has not approved generative AIs specified arsenic ChatGPT.
Finally, Ann Epstein of the Consumer Financial Protection Bureau (CFPI) noted that AI has been utilized to marketplace fiscal products and supply lawsuit service. She said this could person unexpected results and emphasized the request to analyse immoderate effects connected customers and the fiscal services industry.
As representatives from the Federal Reserve, SEC, and OCC code the rising challenges and opportunities posed by integer assets, distributed ledgers, and AI, the market’s intensifying telephone for broad legislative guidance connected these integer assets becomes each the much apparent.
The station Spotlight connected AI, integer assets astatine House subcommittee hearing appeared archetypal connected CryptoSlate.
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