USA: New AI Guidelines Pose a Huge Challenge for Certain Cryptos

Artificial Intelligence (AI) remains a subject of debate, particularly concerning the risks associated with its use across various domains. In the United States, the federal administration has initiated measures to regulate this simultaneously attractive and hazardous sector. These measures are poised to have repercussions for AI-driven cryptocurrencies.

New AI Standards in the U.S. Set to Impact Crypto

On Monday, October 30, the White House released comprehensive regulations on AI. This new regulation has sparked discussions, particularly on how the new rules could impact AI-driven cryptocurrencies. Of particular focus are cryptocurrencies like GRT (The Graph) and AGIX (SingularityNet).

They represent specific categories of cryptocurrencies whose architecture and use incorporate AI functionalities. They differ fundamentally from conventional cryptos such as Bitcoin (BTC) or Ethereum (ETH).

Unlike the latter, their sole purpose is to leverage AI capabilities to perform specific tasks. They can significantly enhance the security, privacy, and efficiency of crypto transactions. However, this does not come without risks.

Analysts anticipate that these AI-driven cryptos will face negative effects due to the implementation of AI standards. But what form might these anticipated effects take?

New Biden Rule Could Affect AI Cryptocurrencies Like GRT, AGIX, FET (Opinion)https://t.co/Z67mD6dOFN

— John Morgan (@johnmorganFL) November 4, 2023

Envisaged Implications on AI Cryptos

With the new AI requirements, the regulatory costs associated with AI cryptos are expected to rise. Consequently, blockchain projects employing AI will face additional financial and temporal burdens to comply.

Nevertheless, this does not necessarily pose an insurmountable challenge for crypto startups aiming to enter this space. The new regulation mandates sharing the results of security tests and critical information with the U.S. government.

This provision appears to apply mainly to “developers of the most powerful AI systems.” Crypto startups that have not reached such a level of sophistication might not immediately face financial constraints. Moreover, even though increased regulatory costs might pose problems, AI cryptos seem aligned with the goals of the Biden administration, particularly in supporting privacy and security measures.