House Democrats Hit SEC With 13 Questions on AI Agents Trading for Retail

House Financial Services Committee Democrats have asked the US Securities and Exchange Commission to explain how it oversees artificial intelligence (AI) agents that 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 a July 31 deadline for written answers to 13 questions on investor protection and market integrity.

Democrats Press SEC as Brokerages Open Trading Floors to AI Agents

The lawmakers asked what oversight and investor protections exist now that brokerages let AI agents trade autonomously for retail clients.

The members acknowledged that generative AI could help investors decide faster and stay better informed. Still, they argued that letting brokerages enable agentic trading raises sharp questions about investor protection, broker-dealer duties, market integrity, and developer accountability.

In addition, the letter flagged the threat of correlated trades. Agents trained on similar data could herd, amplifying volatility and wider market stress.

“The AI firms developing and deploying these agents have thus far operated largely outside the securities regulatory framework, even though their systems are making or enabling consequential investment decisions on behalf of retail investors,” the lawmakers added.

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They also pressed Atkins to define the legal responsibilities of broker-dealers, AI developers, and the agents themselves. They asked whether the current securities law can govern agentic trading or whether Congress must step in.

“Under what circumstances would an AI agent or its developer be required to register as a broker, dealer, investment adviser, or associated person under the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, or other applicable securities laws?” the letter reads.

The Democrats highlighted that the technology could move well beyond stocks and extend to options, cryptocurrency, event contracts, and futures. Atkins faces a July 31 deadline to respond. 

The request follows a wave of retail brokerages opening their platforms to autonomous agents. Robinhood launched Agentic Trading on May 27, allowing AI agents to trade equities on behalf of its customers. Public rolled out a similar agentic brokerage earlier in 2026. 

Meanwhile, Coinbase also introduced Coinbase for Agents in June. The feature enables 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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The post House Democrats Hit SEC With 13 Questions on AI Agents Trading for Retail appeared first on BeInCrypto.