SEC Acting Chair: AI in Finance Needs Tech-Neutral Regulation

In Brief:

Mark T. Uyeda says AI innovation must be balanced with investor protection.

Urges tech-neutral rules to avoid outdated or overly restrictive policies.

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U.S. SEC Acting Chairman Mark T. Uyeda emphasized that financial regulators should adopt a technology-neutral approach when regulating artificial intelligence (AI) in the financial sector. Speaking at the Financial Industry Artificial Intelligence Roundtable, Uyeda noted that AI is increasingly being used to enhance financial services, improve products, and streamline transactions.

He cautioned against overly prescriptive regulation, warning it could become outdated or redundant. Instead, Uyeda stressed the SEC's role in addressing regulatory gaps with updated guidance that fosters innovation without compromising investor protection. “Our focus should be efficient and cost-effective regulation that aligns with our statutory authority,” he said.

As the financial industry continues to integrate AI tools, Uyeda's remarks signal a clear direction: innovation will be supported, but not at the cost of oversight.

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