House Lawmakers Question SEC on Oversight of AI Trading Agents

A group of Democratic US House lawmakers is questioning the US Securities and Exchange Commission (SEC) over its oversight of investment advice and trading powered by artificial intelligence.

In a letter to SEC Chair Paul Atkins, the lawmakers expressed concerns that platforms offering AI trading agents to retail traders raise serious questions for investor protection, broker-dealer responsibilities, market integrity, and the accountability of AI developers.

The lawmakers pointed out that AI agents have grown in popularity among crypto users as traders seek an edge in the always-on market. For example, Coinbase recently introduced an AI agent integrated into its app, which is a registered financial adviser that can provide guidance on trades.

The letter, led by Bill Foster and Brad Sherman, noted that the disclosures accompanying AI agents state that brokerage platforms cannot guarantee the accuracy or suitability of any AI output or control, monitor, or audit the agents. This raises urgent questions about the regulatory treatment of agentic trading tools and creates uncertainty regarding legal responsibility among brokers, AI developers, and retail investors.

The lawmakers asked the SEC to provide written responses to a list of questions by July 31, including what guardrails or analysis the agency has on agents, when an AI agent would need to register, and the extent of its consultations with platforms over AI. They also inquired if the SEC has the authority it needs to address the risks of AI agents or if congressional action is required.