Eight House Democrats Pressure SEC Over AI Trading Regulation, Set July 31 Deadline

Eight House Democrats led by Representatives Bill Foster and Brad Sherman sent a letter to SEC Chair Paul Atkins this week demanding clarity on whether existing securities rules cover AI agents that trade crypto and stocks on behalf of retail investors. The letter sets July 31 as the deadline for written responses on AI trading system registration requirements, regulatory safeguards, and whether Congress must grant new statutory authority.

The letter was prompted by Coinbase's launch of Coinbase for Agents, a platform allowing large language models to execute cryptocurrency trades and manage portfolios. Lawmakers flagged that autonomous trading tools have expanded into options, cryptocurrency, and futures while operating outside the securities regulatory framework, creating an accountability gap between platform disclaimers and investor protection obligations.