US Democratic Lawmakers Pressure SEC Over AI Trading Agents Expansion

Democratic lawmakers in the U.S. House of Representatives urged the Securities and Exchange Commission (SEC) to explain how it plans to regulate artificial intelligence-powered trading tools, according to a press release from Congressman Bill Foster earlier this month. The lawmakers raised concerns about investor protection, market integrity, and accountability as AI trading agents become more widely adopted by retail investors. They warned that AI trading is expected to expand beyond stocks into cryptocurrencies, options, futures, and event contracts, making regulatory oversight essential. The letter cited Coinbase's recent launch of an AI trading assistant integrated into its app, and requested the SEC respond by July 31 with details on existing safeguards, registration requirements, and whether the agency needs additional authority from Congress to regulate the technology.
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