Democrats on the House Financial Services Committee have asked the U.S. Securities and Exchange Commission to explain how it oversees artificial intelligence (AI) agents who trade stocks for retail investors and may soon handle other assets.
Representatives Bill Foster and Brad Sherman led the letter to SEC Chairman Paul Atkins. They set July 31 as a deadline to submit written answers to 13 questions on investor protection and market integrity.
Democrats push back on SEC as brokerage firms open trading floors to AI agents
Lawmakers questioned what oversight and investor protections exist now that brokerages allow artificial intelligence agents to trade independently for retail clients.
Members acknowledged that generative AI can help investors make decisions faster and stay better informed. However, they claimed that allowing brokerage firms to enable proxy trading is leading to a sharp rise Questions about investor protectionBroker-dealer duties, market integrity and developer accountability.
In addition, the letter referred to the threat of tie-up deals. Agents trained on similar data can co-herd, amplifying fluctuations and broader market pressures.
“The AI companies that develop and deploy these agents have thus far operated largely outside the securities regulatory framework, even though their systems make or enable subsequent investment decisions on behalf of individual investors,” the lawmakers added.
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They also pressed Atkins to define the legal responsibilities of brokers, dealers, AI developers and the agents themselves. They wondered whether existing securities law could govern proxy trading or whether Congress should intervene.
“Under what circumstances would an AI agent or developer be required to register as a broker, dealer, investment advisor, or related person under the Securities Act of 1934, the Investment Advisers Act of 1940, or other applicable securities laws?” the letter He reads.
Democrats stressed that the technology could go beyond stocks and extend to options and cryptocurrencies. Event contracts and futures contracts. Atkins He faces July 31 Deadline to respond.
The demand comes after a wave of retail brokers have opened their platforms to independent agents. Robinhood has launched Proxy Trading on May 27, allowing AI agents to trade stocks on behalf of their clients. general Rolled From a similar proxy brokerage earlier in 2026.
Meanwhile, Coinbase too Coinbase introduced agents In June. This feature allows users to connect AI agents to their accounts so they can handle trades, make payments, and perform automated tasks on their behalf.
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this post House Democrats hit SEC with 13 questions about AI retail trading agents appeared first on BeInCrypto.
