AI – The 'Double-Edged Sword' of the Cryptocurrency Industry

Commissioner Kristin Johnson of the U.S. Commodity Futures Trading Commission (CFTC) believes that artificial intelligence (AI) is opening up significant opportunities for the crypto sector, but at the same time, it also increases the risk of fraud if misused.

Speaking at the DigiAssets 2025 conference in London, Ms. Johnson emphasized that AI is now capable of analyzing data in real-time, from price fluctuations to market sentiment on social media. AI can assist in regulatory compliance and shorten payment times, but it also carries risks such as data bias, privacy violations, or even creating information illusions.

More concerning, Ms. Johnson called for increased penalties for fraudulent activities using AI, especially after a serious incident where more than 23,000 victims were deceived by a fraudulent investment strategy posing as an AI application. The scammer was subsequently ordered to repay $1.7 billion.

During the Q&A session, Ms. Johnson also praised Brian Quintenz – who was nominated by President Trump as the new Chairman of the CFTC – and stated that under the new administration, the likelihood that the U.S. will pass specialized regulations for the cryptocurrency sector is higher than ever.

⚠️ AI and crypto can create groundbreaking advancements, but they also require a stricter legal framework to protect users from potential risks.