AI Free to Soar as Crypto Faces Regulatory ‚Dumbness‘: Novogratz

• Galaxy Digital CEO Mike Novogratz has bemoaned the lack of regulation in the AI sector while crypto faces hardline policing and regulatory scrutiny.
• Novogratz believes that, left unchecked, AI-generated Deep Fakes could become prevalent.
• He also bemoaned the fact that crypto and blockchain innovation is being stymied because of one man’s fallen crypto empire.

Galaxy Digital CEO Shocked By Lack of AI Regulation

Mike Novogratz, CEO of Galaxy Digital, has voiced his concern over the differing regulatory approaches to crypto and AI. He fears that without proper regulations, AI-generated Deep Fakes could become commonplace in the future.

U.S. Government’s Regulatory Attention on Crypto

Novogratz says he finds it shocking that so much attention is being given to regulating crypto but not enough to regulating AI technology. In recent months, companies such as Coinbase, Ripple and Paxos have faced intense scrutiny from agencies like the SEC and CFTC due to their involvement in cryptocurrency trading.

Dangers Of Unregulated AI

The dangers of having an unregulated AI sector are very real according to Novogratz who points out how ‚Deep Fakes‘ could become a major issue if not properly addressed. He added: „Pretty soon you’re going to get a fake Mike Novogratz, hopefully with hair.“

FTX Collapse Sparks Regulatory Backlash

The fall of FTX back in November last year has caused U.S regulatory bodies to take a more hardline approach towards regulating cryptocurrency trading platforms – something which Novograts refers to as „dumb“. Despite this though, there have been no significant efforts taken towards regulating the fast-growing AI industry yet.

U.S Chamber Of Commerce Weighs In On Regulation

The U.S Chamber of Commerce recently commented on regulation within the emerging technology world and proposed a set of guidelines for companies developing autonomous systems or using artificial intelligence technology for decision-making purposes – though these rules are far from binding or enforced at this point in time and they only apply to government contractors rather than commercial companies operating in this field too.