Democrats in the US demand that the SEC take control of AI trading: a threat to market integrity
A group of Democrats from the U.S. House of Representatives sent an official letter to SEC Chairman Paul Atkins, expressing serious concern over the lack of regulatory oversight of AI agents actively used by retail investors for trading. These are software algorithms capable of making independent investment decisions, and according to lawmakers, this sector remains in a legal "gray zone."
The authors of the appeal — Congressmen Bill Foster and Brad Sherman — emphasize that the activities of such AI services pose a direct threat to the integrity of financial markets. Developers of artificial intelligence and brokerage platforms implementing these technologies are effectively operating outside the framework of securities laws, even though they make key investment decisions on behalf of users.
"AI firms operate largely outside securities regulation. It is important that technology does not become a tool for concealing conflicts of interest or market manipulation," the politicians noted in their appeal.
The reason for such close attention was the sharp rise in popularity of AI assistants, particularly in the crypto industry. In early June, the Coinbase exchange launched its own virtual assistant that provides trading recommendations. The letter specifically emphasizes that such platforms often disclaim responsibility for the accuracy and consequences of predictions generated by algorithms.
The congressmen posed a series of specific questions to the SEC, demanding a response by July 31:
- what protective mechanisms are already in place for AI agents;
- in which cases such bots are required to undergo mandatory registration;
- whether the agency has sufficient authority to oversee this sector or if Congressional intervention is needed.
This request is not an isolated incident. Earlier, in June, Anthropic CEO Dario Amodei called for stricter oversight of AI models, indicating growing concern within the industry itself.
My professional commentary: The Democrats' demands are absolutely justified. The market is already facing situations where AI "black boxes" make decisions that their creators cannot explain. The SEC must act proactively, otherwise we risk a new class of financial bubbles and manipulations, where algorithms will act as invulnerable intermediaries. The question is not whether AI trading needs to be regulated, but how quickly the regulator can adapt to this new reality.