A New Blue Sky: SEC Considerations in the Regulation of Autonomous AI Misconduct

Journal

American University Administrative Law Review Accord

Volume

10

Issue

1

Abstract

The mission of the U.S. Securities and Exchange Commission (SEC or the Commission) is to “protect[] investors, maintain[] fair, orderly, and efficient markets, and facilitat[e] capital formation.” The SEC upholds this mission by regulating U.S. financial activity, an industry particularly sensitive to recent advancements in technology. After the explosion of the Internet, the SEC established the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system to make corporate filings accessible to the public online. Similarly, the exponential growth of cryptocurrency and other digital assets challenged the way the SEC regulates securities. Now, nearly every industry benefits from utilizing artificial intelligence (AI), and the SEC must assess whether it can effectively regulate its use to protect investors, markets, and capital formation from malicious, reckless, or inadvertent uses of AI.

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