House Democrats seek SEC answers on AI investment advisors
A group of Democratic US House lawmakers is questioning the US securities regulator over how it is overseeing investment advice and trading powered by artificial intelligence. In a letter to SEC Chair Paul Atkins dated Tuesday, the lawmakers said that platforms offering AI trading agents to retail traders “raises serious questions for investor protection, broker-dealer responsibilities, market integrity, and the accountability of AI developers.” “While such trading may initially be limited in scope, there are indications that agentic trading could expand to a broad range of additional products, including options, cryptocurrency, event contracts, and futures,” the lawmakers wrote. AI agents have grown in popularity among crypto users as traders look to gain an edge in the always-on market, an idea that has spread to retail traders of traditional equities as they seek help with strategies. Crypto exchange Coinbase is one of the latest major platforms to introduce such a tool, releasing an AI agent earlier this month integrated into its app, which it said is a Securities and Exchange Commission- and Commodity Futures Trading Commission-registered financial adviser that can give guidance on trades. The letter, led by Bill Foster, the top Democrat on the House Financial Services Financial Institutions Subcommittee, and Brad Sherman, the top