The NFA submitted the proposed new rule to the secretary of the Commodity Futures Trading Commission (CFTC) in a letter dated Feb. 28, 2023. The organization explained that while it has over 100 members engaged in activities with digital asset commodities, it had no way to address fraud or misconduct committed by those members. The new rule is designed to complement the requirements issued in 2018 and is modeled on the NFA’s antifraud rules for exchange-traded futures, swaps transactions, and retail foreign exchange.

As the only registered self-regulatory organization with delegated authority from the CFTC, the NFA has an analogous status to the Financial Industry Regulatory Authority with the Securities and Exchange Commission. Under the new rule, NFA members engaged in digital asset commodities will be subject to guidance on fraud, trade principles, and employee supervision.

Currently, the NFA only imposes disclosure requirements on its members engaged in spot commodity activities with digital assets. These requirements are detailed in a single document. However, with the new rule, members will be subject to more comprehensive guidelines that aim to promote fair and ethical conduct in the digital asset commodities market.

It’s important to note that the new rule applies only to Bitcoin (BTC) and Ether (ETH), as they are the only digital assets with related commodity interests certified by a registered entity for listing under Part 40 of CFTC Regulations. The NFA hopes that the new rule will help protect investors in the rapidly growing digital asset commodities market.

The algorithms used in the integration incorporate machine learning and other advanced techniques to conduct real-time analyses of data and trading opportunities. According to Dmitry Gooshchin, chief operating officer of EndoTech.io, understanding market volatility is essential for successful trading in the crypto space.

OKX’s adoption of AI in the crypto industry is not new. The company recently posted an AI-generated poem from ChatGPT-4 about its wallet on March 30. The poem was an example of how the AI technology can be used to enhance user experience and engagement.

The integration with EndoTech.io is just one example of how AI is finding various use cases in the crypto industry. It is not only used to identify real-time market volatility but also for tracking blockchain transactions, deploying autonomous economic agents for trading, and more.

In everyday life, AI is now used for personal assistant-like tasks, social media, and customer service needs, among other use cases. However, not everyone is convinced of the benefits of AI technology. Recently, a letter signed by 2,600 researchers and leaders in fintech called for a pause in AI development. The letter highlighted the concern that “human-competitive intelligence can pose profound risks to society and humanity,” among other issues.

While opinions on the impact of AI in the crypto industry may be mixed, OKX continues to push forward with its AI integration strategy. This new platform update comes only a few days after the company announced its intention to expand its services to Australia while shutting down its former operations in Canada.

As AI technology continues to evolve, it will be interesting to see how it shapes the future of the crypto industry and society as a whole. While there may be concerns about its impact, the potential benefits of AI cannot be ignored.

The signatories of the letter urge all AI firms to immediately cease developing AI systems that are more potent than Generative Pre-trained Transformer 4 (GPT-4) for at least six months. GPT-4 is a multimodal large language model created by OpenAI and the fourth in its GPT series. The aim of the proposed moratorium is to allow time for comprehensive risk assessments to be carried out and for the development of new safety protocols.

However, the petition has divided the tech community, with some opposing the call to halt AI development. Coinbase CEO Brian Armstrong, among other notable names, voiced his opposition to the petition, stating that “committees and bureaucracy won’t solve anything.” Armstrong added that there are no designated “experts” to decide on this issue and that not everyone in the tech industry agrees with the petition.

Armstrong argued that the risks of new technologies, including AI, are an inherent part of progress, and that centralization in decision-making will bring no good. He reminded that any new technology poses a certain amount of danger, but the goal should be to keep moving forward.

A columnist at LA Times, Brian Merchant, called the petition an “apocalyptic AI hype carnival” and stated that many of the stated concerns are “robot jobs apocalypse” stuff. Meanwhile, Satvik Sethi, a former Web3 executive at Mastercard, described the petition as a “non-proliferation treaty but for AI.” He added that many of the popular signers on the list have a deeply personal vested interest in the AI field and are likely just “trying to slow down their counterparts so they can get ahead.”

The debate around the open letter highlights the complex and multifaceted challenges of AI development. While some experts view the potential benefits of AI as significant, there are also concerns about the potential risks to society and mankind. The debate highlights the need for continued discussion and collaboration among all stakeholders to ensure that the development of AI is safe, ethical, and aligned with the long-term interests of humanity.