February 24, 2024
Industry groups rally around Senate bid to block AI-related SEC rulemaking
Senate Commerce ranking member Ted Cruz (R-TX) and Sen. Bill Hagerty (R-TN) have introduced a bill to block the Securities and Exchange Commission from implementing a proposed rule that addresses potential broker-dealer and investment advisor conflicts of interest in the use of artificial intelligence and other tools.
The SEC proposal was issued in July 2023 and immediately triggered intense financial industry opposition. But SEC Chairman Gary Gensler in January said he is “especially wary” of AI tools that exploit...