Republican Senators Introduce Bill to Block SEC's AI Regulation in Finance

The proposed legislation aims to prevent the SEC from enforcing rules that would limit the use of AI by financial firms, citing innovation and investor benefits.

• Republican senators Ted Cruz and Bill Hagerty propose the Protecting Innovation in Investment Act to halt SEC's AI regulation.
• The SEC's proposed rule requires financial firms to identify and mitigate conflicts of interest when using AI, aiming to protect investors.
• Critics argue the rule could impose high compliance costs, hindering the adoption of new technologies in the finance sector.
• The bill lacks Democratic support, making its progress uncertain amidst a divided Congress.
• The debate reflects broader challenges in reaching bipartisan consensus on the regulation of emerging technologies like AI.

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