AI Agents in Trading: US Democrats Urge SEC for Urgent Regulation
A group of influential Democrats in the U.S. House of Representatives has sent an official letter to SEC Chairman Paul Atkins demanding immediate increased oversight of the use of artificial intelligence in trading. Lawmakers Bill Foster and Brad Sherman are sounding the alarm: AI agents that independently execute trades on behalf of retail investors operate in a nearly complete legal vacuum.
According to the congressmen, algorithm developers and brokerage platforms that implement such services are effectively making key investment decisions for users, yet bear no responsibility for the outcomes. "AI firms operate outside the framework of securities regulation. Technology should not become a cover for conflicts of interest or market manipulation," the letter emphasizes.
The cause for concern was the rapid growth in popularity of AI assistants in the crypto industry. In early June, the Coinbase exchange launched its own virtual assistant that provides trading advice. At the same time, many platforms disclaim all responsibility for the accuracy of predictions, leaving users to face the risks alone.
The congressmen have posed a number of fundamental questions to the SEC, which must be answered by July 31:
- What protective mechanisms are already in place for AI agents?
- In which cases are such bots required to undergo mandatory registration?
- Does the agency have sufficient authority to oversee the sector, or is Congressional intervention necessary?
Notably, earlier in June, Anthropic CEO Dario Amodei also called for stricter oversight of AI models, pointing to systemic risks to financial stability.
Expert commentary: The Democrats' initiative is just the tip of the iceberg. The market has already encountered a situation where algorithms without legal personality manage millions of dollars. If the SEC does not develop clear rules in the coming months, we risk seeing a wave of manipulation and losses among retail investors who trust "smart" bots. It is time for the regulator to move from observation to action.