USA Law and Practice Contributed by: Irwin A. Kishner, Daniel A. Etna, Joel Wagman and Barry Werbin, Herrick, Feinstein LLP
ing in NFTs is speculative in nature with limited historical information to make informed deci - sions. Trading volume and valuations, based heavily on demand and scarcity, have fluctuated widely. After peaking in 2021, many NFT market - places, including those relating to sports, have experienced significant decreases in value. Finally, many NFT purchases are made with cryp - tocurrency such as bitcoin, which imposes risks of its own including price volatility, security risk and high transaction fees. The developing secu - rity and valuation issues in the broader crypto - currency market may cause teams, leagues and other players to reassess their use of NFT, given cryptocurrency’s status as a common currency for NFT purchases and the overlapping use of blockchain technology in both cryptocurrency and NFTs. 10.2 AI While the AI landscape has been rapidly evolv - ing, the regulatory framework in the USA remains in its early stages. AI has proved to have many applications in athletics already, with infinite possibilities on the horizon. Federal AI Guidance As of January 2025, there was no formal, dedi - cated federal AI legislation. However, some pre - liminary guidance has emerged at the federal level. The Blueprint for an AI Bill of Rights In October of 2022, the White House Office of Science and Technology Policy (OSTP) pub - lished a white paper titled the “Blueprint for an AI Bill of Rights: Making Automated Systems Work for the American People” . This paper notes that its principles do not constitute binding US government policy or guidance on the public or
federal agencies. The document proffers five key principles: • You should be protected from unsafe or inef - fective systems. • You should not face discrimination by algo - rithms, and systems should be used and designed in an equitable way. • You should be protected from abusive data practices via built-in protections and you should have agency over how data about you is used. • You should know that an automated system is being used and understand how and why it contributes to outcomes that impact you. • You should be able to opt out, where appro - priate, and have access to a person who can quickly consider and remedy problems you encounter. The AI Risk Management Framework In January 2023, the US Department of Com - merce’s National Institute of Standards and Technology (NIST) published the “AI Risk Man - agement Framework” (AI RMF). In March of 2023, it launched the Trustworthy and Respon - sible AI Resource Center, which aims “to offer a resource to the organizations designing, devel - oping, deploying, or using AI systems to help manage the many risks of AI and promote trust- worthy and responsible development and use of AI systems” . State AI Regulation A number of states have begun to enact meas - ures aimed at a better understanding and regu - lation of AI. Certain states (including Alabama, California, Colorado, Connecticut, Illinois, Loui - siana, New Jersey, New York, North Dakota, Texas, Vermont and Washington) have imple - mented legislation aimed at researching AI to better understand its possible consequences.
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