President Joe Biden’s recent Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence has impacted the cryptocurrency market, with AI-related tokens dipping in value.
The White House’s Executive Order introduces a regulation framework for responsible AI use. It calls for seemingly restrictive guidelines, standards, and best practices with a focus on safety and security.
One key measure is managing AI risks with red-teaming tests. These tests will help ensure AI systems are robust against potential threats.
A notable rule in the order is about disclosing significant computing resource acquisitions for AI work. This rule places computational power as a potential risk needing oversight.
Biden’s move indicates a comprehensive shift towards a more regulated and controlled AI development scene in the U.S. The aim is to prevent threats that might come from AI misuse.
Concerns Over Innovation Amid New Regulations
The AI executive order, on the other hand, has stirred the industry and evoked discussions on the impact it may bring to the innovations and technological developments.
Jeff Amico, Head of Operations at Gensyn Network said that only “the large incumbents” will be able to comply with the new obligations. Amico found the order unnecessarily stringent since the infra providers must report to the government anytime a “foreign person [transacts]…to train a large AI model with potential capabilities that could be used in malicious cyber-enabled activity.”
“It’s terrible for US innovation.” Amico said.
In addition to developers, AI artists too are sharing their concerns regarding the regulations. “[The AI executive order is] the most expansive AI laws in the world,” said Claire Silver, the founder of A2 Accelerate Art.
AI Tokens Dip in Wake of Regulatory Adjustments
The shock wave from the order transcended the AI industry, impacting the crypto market. Although the global crypto market cap increased by a minimal 0.08% over the last day, CoinMarketCap indicates that the total market cap of top AI and Big Data tokens decreased by 3.58%. This includes a decrease of 0.68% for The Graph (GRT), 4.37% for Render (RNDR), and 1.70% for Oasis Network (ROSE).