CFTC Commissioner Kristin N. Johnson delivered opening remarks at the FIA L&C Panel by emphasizing the significance of ongoing dialogues about the impact of emerging technologies like generative AI on financial markets. While these innovations hold promise for advancements in various sectors, Johnson cautioned against overlooking the potential risks associated with their integration without proper oversight.
Johnson highlighted three key interventions she has advocated for as a Commissioner. First, Johnson emphasized the need for heightened penalties for fraudulent or manipulative use of AI in financial markets, stressing the importance of adapting surveillance technologies to keep pace with market evolution. Second, Johnson called for a principles-based regulatory framework to address the increasing prevalence of AI, citing the CFTC's initiatives to understand AI's uses and potential risks. Third, Johnson proposed the establishment of an inter-agency task force to harmonize safeguards and ensure market stability and integrity.
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