House Financial Services Committee Democrats have asked the US Securities and Exchange Commission to explain how it oversees artificial intelligence (AI) that sells stocks to brokers and may soon manage other stocks.
Representatives Bill Foster and Brad Sherman directed the letter to SEC Chairman Paul Atkins. They set a deadline of July 31 for writing answers to 13 questions on investor protection and market integrity.
Democrats Press SEC as Brokerages Open Trading Floors to AI Agents
The lawmakers questioned what oversight and protections are in place now that businesses allow AI agents to automatically sell to retail customers.
The panelists agreed that AI output can help investors make faster and more informed decisions. However, they argued that allowing brokerages to trade would raise the stakes questions about investor protectionbroker services, market integrity, and developer accountability.
Additionally, the letter highlighted the threat of affiliate marketing. Agents trained in similar information can feed off, amplifying the instability and high market pressure.
“The AI companies that are developing and deploying these agents have been operating outside of the safety net, even though their systems are making or influencing decisions on behalf of vendors,” the lawmakers added.
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They also pressed Atkins to clarify the legal responsibilities of broker-dealers, AI developers, and agents. He asked whether existing securities laws could control the sale of securities or whether Congress should step in.
“Would an AI agent or its developer be required to register as a broker, dealer, financial adviser, or affiliate under the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, or other securities laws?” and letter they read.
Democrats asserted that technology could go beyond stocks and beyond options, cryptocurrency, contracts for events, and futures. Atkins he is facing July 31 deadline to respond.
The request follows a growing number of brokerages opening up their platforms to independent brokers. Robinhood was launched Agency Trading on May 27, allowing AI agents to trade on behalf of its clients. In public he rolled over created a similar business back in 2026.
Meanwhile, Coinbase too launched Coinbase for Agents in June. This feature enables users to connect AIs to their accounts so that they can make transactions, make payments, and automate their tasks.
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A note House Democrats Hit SEC With 13 Questions on Sales of AI Agents for Retail appeared for the first time BeInCrypto.
