rtificial intelligence (AI) presents both opportunities and new dangers in the growing cryptocurrency industry. With the industry’s growth, AI is increasingly becoming germane to its existence, and the relationship is rapidly expanding. AI is driving innovation in the cryptocurrency industry through various sub–domains, including international transactional behavior, global exchange rates, and blockchain quality.
Despite its growing integrated role in the international financial markets, the global community has yet to present a comprehensive framework on how to deal with artificial intelligence's role in the cryptocurrency industry. No country on the world stage has taken on the leadership to create such a framework. However, the U.S. expressed interest in taking on this leading role. The current administration signaled this strategic goal after signing a recent executive order recommending the U.S. to be "the crypto capital of the world planet." The executive order recommended governing digital assets, establishing central bank digital currencies, and appointing a new AI & Cryptocurrency Czar. Moreover, the intent of the executive order is to generate billions of dollars for American investors by curtailing regulatory overreach on digital assets.
The intersection of artificial intelligence and cryptocurrency also presents significant economic security challenges. There is no international framework or comprehensive guidance that provides standards on how to deal with the risks associated with the disruptive, technological relationship. Uncontrollable AI–crypto tools will likely exacerbate wealth inequality if it continues operationalizing without regulation—driving false predictions, manipulation, and unexpected market shifts. As a result, investors, especially from the American working class, are more at risk of losing significant money; many American working class investors already experienced losses from unregulated AI–crypto tools during and after the cryptocurrency bubble of 2017–18.
The U.S. will gain more credibility as the leading role in this industry by facilitating international standards on the AI and cryptocurrency integration. The UN AI advisory board and Bretton Wood Institutions are great starting points for promoting international standards on data privacy, transparency, predictive analytics, innovation, and network operations. Washington should present a balanced approach to the global community as part of the international standards. While Washington attempts to curtail overreaching regulatory behavior, the current administration should continue implementing protective mechanisms for American consumers since the market remains volatile. American consumers must be protected from risks associated with AI–crypto relationships, including biased advertisement and money laundering, and also allow consumers to take legal action against proven, abusive behavior.
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Preparing for the impact of AI on cryptocurrency
Photo by Sajad Nori from Unsplash.
March 17, 2025
Artificial intelligence is transforming cryptocurrency, influencing international transactions and blockchain integrity. As the leader in AI–crypto governance, the U.S. should balance innovation with economic security to protect investors and stabilize markets, writes Asha Castleberry–Hernandez.
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rtificial intelligence (AI) presents both opportunities and new dangers in the growing cryptocurrency industry. With the industry’s growth, AI is increasingly becoming germane to its existence, and the relationship is rapidly expanding. AI is driving innovation in the cryptocurrency industry through various sub–domains, including international transactional behavior, global exchange rates, and blockchain quality.
Despite its growing integrated role in the international financial markets, the global community has yet to present a comprehensive framework on how to deal with artificial intelligence's role in the cryptocurrency industry. No country on the world stage has taken on the leadership to create such a framework. However, the U.S. expressed interest in taking on this leading role. The current administration signaled this strategic goal after signing a recent executive order recommending the U.S. to be "the crypto capital of the world planet." The executive order recommended governing digital assets, establishing central bank digital currencies, and appointing a new AI & Cryptocurrency Czar. Moreover, the intent of the executive order is to generate billions of dollars for American investors by curtailing regulatory overreach on digital assets.
The intersection of artificial intelligence and cryptocurrency also presents significant economic security challenges. There is no international framework or comprehensive guidance that provides standards on how to deal with the risks associated with the disruptive, technological relationship. Uncontrollable AI–crypto tools will likely exacerbate wealth inequality if it continues operationalizing without regulation—driving false predictions, manipulation, and unexpected market shifts. As a result, investors, especially from the American working class, are more at risk of losing significant money; many American working class investors already experienced losses from unregulated AI–crypto tools during and after the cryptocurrency bubble of 2017–18.
The U.S. will gain more credibility as the leading role in this industry by facilitating international standards on the AI and cryptocurrency integration. The UN AI advisory board and Bretton Wood Institutions are great starting points for promoting international standards on data privacy, transparency, predictive analytics, innovation, and network operations. Washington should present a balanced approach to the global community as part of the international standards. While Washington attempts to curtail overreaching regulatory behavior, the current administration should continue implementing protective mechanisms for American consumers since the market remains volatile. American consumers must be protected from risks associated with AI–crypto relationships, including biased advertisement and money laundering, and also allow consumers to take legal action against proven, abusive behavior.
