- Treasury Secretary Scott Bessent underscored how clearer regulations would greatly support the growth of the digital asset sector during the two-day G20 Innovation Ministerial summit.
- Meanwhile, White House tech adviser Michael Katsios recommended a lighter touch on AI to encourage innovation.
The G20 Innovation Ministerial summit kicked off on Tuesday, with the US pressing its trade allies to take a more hands-on approach to bolstering financial innovation through clear regulations. Meanwhile, it recommended a hands-off approach in artificial intelligence (AI) to prevent roadblocks toward its advancement.
The event in Asheville, North Carolina, welcomed the United States of America’s presidency in the international forum. Under its rotational leadership, President Donald Trump will assume the host mantle heading into the annual meeting in Miami, Florida, in December.
Treasury Secretary Scott Bessent addressed attendees of the two-day G20 meeting, which included central bank governors and finance ministers, with his keynote focusing on digital assets. Then, White House Office of Science and Technology Policy Director Michael Katsios addressed the issues on AI regulation.
Clearer Path to Digital Asset Regulation
Starting with digital assets, Bessent highlighted how the sector can accelerate “broad-based economic growth.” However, its advantages should be balanced out with safeguards to ensure financial stability and trust in the monetary and payment system amid the ongoing transformation.
The Treasury Secretary committed to advancing responsible and effective regulatory and supervisory frameworks to enforce such safeguards while establishing clear pathways for sound digital financial and digital assets innovation. Additionally, he expressed support for the Financial Stability Board’s (FSB) ongoing efforts to address vulnerabilities inherent in cross-border stablecoin arrangements.
Likewise, Bessent encouraged members to adopt a harmonized ISO 20022 data model. The measure aims to facilitate more efficient and more secure settlement rails while expanding the operating hours of large-value cross-border payment systems.
Hands-Off Approach to AI
On the side of AI, Kratsios urged G20 allies to concentrate on writing rules for “novel” situations involving the technology rather than crafting additional regulations that could complicate things. He referred to the “light touch” framework on AI as the “Carolina Principles.”
Besides fewer rules, Trump’s tech adviser discouraged creating new agencies dedicated to AI. Instead, it should focus on boosting research and commercial support for the industry and other emerging technologies.
Kratsios argued that strict rules could suppress progress in the sector, as they would slow developers and enterprises from releasing new models. The same could restrict companies from immediately addressing vulnerabilities in their AI systems.
SpaceX CEO Elon Musk, Meta CEO Mark Zuckerberg, and Google DeepMind Chair Demis Hassabis also addressed the group through video conference, emphasizing the importance of more flexible rules for AI.
