House Democrats demand SEC answers on AI-powered investment advisors

Democratic lawmakers are pressing the SEC on how it oversees AI trading agents that make investment decisions for retail investors, warning the tools operate outside securities rules.

• Led by Reps. Bill Foster and Brad Sherman, the letter asks the SEC for written responses by July 31 on AI agent guardrails.
• The lawmakers warn AI agents making 'consequential investment decisions' for retail investors lack regulatory oversight.
• Coinbase recently launched an SEC- and CFTC-registered AI agent integrated into its app for trade guidance.
• The letter questions whether the SEC has enough authority to address AI risks or needs new congressional action.

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