Overview

• 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.