Regulation
CFTC Appoints Dr. Ted Kaouk as First Chief AI Officer
The Commodity Futures Trading Commission (CFTC) has announced the appointment of Dr. Ted Kaouk as its first Chief Artificial Intelligence Officer. As Dr. Kaouk is now acting as the Chief Data Officer and Director of the Division of Data at the CFTC, he will broaden his duties to oversee the development and execution of the CFTC’s overall data and artificial intelligence strategy.
This progress is intended to enhance oversight, surveillance, and enforcement, as well as other segments of the derivatives market in which the CFTC operates.
The CFTC now has a “Chief AI Officer”
What a time to be alive pic.twitter.com/fXZHz7eZzv
— M.B. (@741trey) May 1, 2024
Chairman Rostin Behnam highlighted the importance of advanced data analytics and artificial intelligence in evolving the operational systems of the CFTC. In Chairman Behnam’s words, Dr. Kaouk’s deep technical knowledge and prior successful leadership are critical for driving the CFTC’s initiatives at this current time. The inclusion of AI into the agency’s activities is anticipated to upgrade sets of skills, cultivate data utilized culture, and use AI for innovation within financial market rules.
Background and Expertise of Dr. Ted Kaouk
Prior to being at CFTC, Dr. Kaouk occupied positions in different government agencies. He was the Chief Data Officer at the Office of Personnel Management (OPM), where his role was to develop the first federal government-wide human capital data strategy.
Among his accomplishments is the creation of the first enterprise data analytics and AI platform at the U.S. Department of Agriculture. Dr. Kaouk’s leadership was also evident in his position as the first Chair of the Federal Chief Data Officers Council, which he led from its creation in 2020 until January 2024.
Dr. Kaouk’s professional journey began as a surface warfare officer in the U.S. Navy, after which he went on to pursue his education in renowned academic centers. He received his undergraduate degree from the U.S. Naval Academy, his master’s degree from the University of Virginia, and his PhD is from the University of Maryland, College Park.
AI Day and the Future of AI in Financial Regulation
In line with the announcement of Dr. Kaouk’s new role, the Commission’s Technology Advisory Committee (TAC), held under the sponsorship of Commissioner Christy Goldsmith Romero, has released the agenda for the upcoming “AI Day.” This event will be held at the CFTC’s Washington, D.C. headquarters, where the responsible introduction of AI in regulated financial services will be discussed. The day’s sessions will also involve input from AI experts across different sectors, including government regulators and the private sector.
“AI Day” Agenda Announced for May 2 @CFTC Technology Advisory Committee Meeting: https://t.co/r2WTmf7GY5
— CFTC (@CFTC) May 1, 2024
The workshops will address a few important topics, among which is Sunayna Tuteja, the Chief Innovation Officer of the Federal Reserve Board, presenting the role of AI in driving responsible innovation at the Federal Reserve. Additional presentations will concern market automation, the NIST AI Risk Management Framework, and the U.S. Treasury Department’s report on AI in financial sector cyber security. The purpose of these discussions is to reflect on the application and regulation of AI equipment in the financial markets.
Concurrently, the AI Day event encourages public participation either in person or through a live webcast available on the CFTC’s official website. This initiative is a part of the TAC’s continuous endeavor to create the ground for informed conversations about the challenges of AI technologies at the interface of technology, law, and policy.
Read Also: Bitcoin (BTC) Now Worth Fewer Than 25 Ounces: Peter Schiff
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.
Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin
In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.
Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.
Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.
“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.
In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.
Industry Players Are Bracing For New Stablecoin Regulations
Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.
For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.
Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.
New FDIC Guidelines on Crypto-Related Activities
The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.
Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.
This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
South Carolina Could Spend 10% of Funds on Bitcoin Reserve
FDIC and CFTC Rescind Old Crypto Guidelines
Pi Network (PI) Drops Further Despite Telegram Wallet Deal
Chainlink Price Leads Altcoin Selloff, Where Is LINK Price Floor?
XRP Price Eyes 20% Move With Golden Pocket Appearance
Is Bitcoin About To Skyrocket Or Crash? What Truflation Says
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Market24 hours agoEthereum Price Struggles—Is Another Breakdown on The Horizon?
-
Altcoin24 hours agoBinance Adds Support For MUBARAK, CZ’s Dog, & These Crypto, Here’s All
-
Market23 hours ago$14 Billion in Bitcoin and Ethereum Options Set to Expire Today
-
Market22 hours agoDogecoin (DOGE) Faces Market Correction—Will Buyers Step Back In?
-
Bitcoin21 hours agoStrategic Bitcoin Reserve Proposed by Brazil’s VP Advisor
-
Market20 hours agoXRP Price Slides Slowly—Is a Bigger Drop Coming?
-
Altcoin16 hours agoBlessing or Curse for the Crypto Market?
-
Market16 hours agoHedera Falls 4% as Bears Dominate: What’s Next for HBAR?
✓ Share: