SEC Chair Highlights AI's Role in Financial Innovation

According to Odaily, the U.S. Securities and Exchange Commission (SEC) has released remarks from its Acting Chair, Mark T. Uyeda, during a roundtable on artificial intelligence in the financial industry. Uyeda emphasized that the U.S. financial markets have consistently advanced through technological innovation, with various forms of artificial intelligence being utilized in financial products and services. This technological adoption has facilitated improvements in trading, investment, and financial processes. Uyeda advocated for a technology-neutral regulatory approach by financial regulators to avoid overly prescriptive methods that could quickly become outdated, redundant, and hinder innovation. He noted that if advancements in technologies like AI reveal potential gaps in the regulatory framework or indicate a need for additional guidance, the SEC is responsible for addressing these gaps or providing guidance that encourages innovation while protecting investors. The SEC must remain mindful of its statutory authority and prioritize effective and cost-efficient regulations in this area.