On August 1, the Chair of the SEC, Gary Gensler, addressed the Strike Force on Unfair and Illegal Pricing emphasized the agency’s commitment to combating deceptive, fraudulent and anticompetitive practices. The Chair highlighted the SEC’s recent enforcement efforts and rulemaking projects to enhance competition. His remarks focused on the transformative potential of AI and its implications for the securities markets. Gensler acknowledged that while AI offers substantial benefits, it also presents new challenges for regulatory agencies, like how to address bad actors that could potentially use AI to deceive or defraud investors.

The Chair also raised concerns about the anticompetitive risks associated with AI, such as the fact that few tech platforms dominate the current AI market. The Chair warned that AI could be used to manipulate market systems or signal to competitors about pricing, thus undermining competition. In conclusion, Gensler expressed a commitment to collaborating with other agencies to address the challenges posed by AI in the financial sector. The remarks demonstrated the SEC’s proactive stance in adapting to technological advancements while maintaining its core mission of protecting investors and ensuring fair, orderly and efficient markets.