Two US lawmakers have urged Securities and Exchange Commission (SEC) chair Paul Atkins to clarify how existing securities laws apply when AI agents, autonomous software systems that execute financial transactions on behalf of users, trade on behalf of retail investors, as the technology moves from research and analysis into live order execution.
US Lawmakers Push SEC for Answers as AI Trading Moves into Retail Investing
25 June 2026 - 11:50 CEST
By Sandmark staff
Representatives Bill Foster and Brad Sherman asked Atkins to explain whether current regulations adequately address AI-driven trading, who bears legal responsibility when AI agents make harmful or manipulative trades, and whether new legislation may be needed as the technology gains traction.
The request follows the recent introduction of AI agent trading products by Robinhood and Coinbase, which now allow AI systems to execute trades through customer accounts under user-defined parameters.
Agentic AI in financial markets
The lawmakers' questions reflect a broader shift across financial markets, where firms are building tools that allow AI agents to place trades, rebalance portfolios and interact with financial infrastructure with limited human intervention.
Crypto firms are also embedding trading and decentralized finance (DeFi) services into AI chat interfaces, allowing users to execute transactions through conversational prompts rather than traditional wallets or exchange applications.
The International Organization of Securities Commissions (IOSCO), the global body representing securities regulators, has identified governance, transparency, oversight and accountability as the key challenges raised by AI adoption in financial firms, precisely the areas Foster and Sherman press the SEC to address. IOSCO has said firms should maintain appropriate human oversight and risk controls even as AI takes on more operational responsibilities.
Focus shifts to accountability
The congressional letter doesn't propose new rules. Instead, it questions whether today's regulatory framework can adequately supervise AI agents as they begin making investment decisions traditionally carried out by humans.
The issue extends beyond market efficiency. If AI agents increasingly execute trades across equities, crypto and other asset classes, regulators may need to determine where responsibility lies when those systems malfunction, manipulate markets or cause investor losses.
The SEC has yet to outline a dedicated framework for autonomous AI trading, according to the letter. As financial platforms accelerate the rollout of agent-driven products, pressure is mounting on regulators to clarify how existing investor protection and market integrity rules apply to machines acting on behalf of humans.
