U.S. SEC Acting Chair: A technology-neutral regulatory approach should be taken for financial AI

ChainCatcher News, the official release from the U.S. Securities and Exchange Commission features remarks by its Acting Chairman Mark T. Uyeda at the Financial Industry Artificial Intelligence Roundtable. Mark T. Uyeda stated that the U.S. financial markets have been continuously advancing through technological innovation, with various forms of artificial intelligence being utilized in financial products and services. The use of these technologies has facilitated improvements in trading, investment, and financial products and processes.

Financial regulatory agencies should adopt a technology-neutral regulatory approach and avoid overly prescriptive methods, as such approaches may lead to rules becoming outdated or redundant quickly. If technological advancements like artificial intelligence create potential gaps in the regulatory framework or indicate the need for additional guidance, the U.S. Securities and Exchange Commission has the responsibility to address these gaps or provide guidance in a manner that encourages innovation while protecting investors. The U.S. Securities and Exchange Commission must keep its statutory authority in mind and prioritize effective and cost-efficient regulations in this area.