SEC Chair Atkins Addresses FSOC AI Innovation Series Roundtable, March 2026

On 4 March 2026, SEC Chair Paul Atkins delivered remarks at the Financial Stability Oversight Council (FSOC) Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles. The FSOC convened the roundtable under its mandate to identify risks to U.S. financial stability and to promote market discipline, as established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, Title I, 12 U.S.C. § 5321–5394. Chair Atkins spoke in his capacity as a FSOC voting member, as provided by 12 U.S.C. § 5321(b)(1)(B). The remarks constitute a speech, not a rulemaking; no new rule, guidance, or enforcement action was issued on 4 March 2026.

The controlling statutory authority for the FSOC's AI oversight activities is the Dodd-Frank Act, 12 U.S.C. § 5322(a), which empowers FSOC to collect information from member agencies and the public to assess threats to financial stability. The SEC's own authority to regulate AI use in securities markets derives from the Securities Exchange Act of 1934, 15 U.S.C. § 78c et seq., including Section 15(b) (broker-dealer registration) and Section 17 (recordkeeping), and from the Investment Advisers Act of 1940, 15 U.S.C. § 80b-1 et seq. Chair Atkins indicated at the roundtable that the SEC would use its existing statutory tools to address AI-related risks in securities markets rather than seek new AI-specific legislation.

Broker-dealers, investment advisers, and registered investment companies that deploy AI in trading, order routing, compliance monitoring, or client-facing advisory functions should assess whether those applications fall within existing SEC rules on recordkeeping (Rule 17a-4), best execution, and conflicts of interest. Investment advisers using AI in portfolio management or client recommendations must assess compliance with their fiduciary duty under the Advisers Act and with existing Commission guidance on AI-related conflicts of interest. FSOC member agencies, including the SEC, the Federal Reserve, the OCC, and the FDIC, are expected to coordinate their AI oversight through FSOC's existing annual report and information-sharing mechanisms under 12 U.S.C. § 5322(a)(2).

The 4 March 2026 roundtable did not produce binding FSOC guidance or a formal FSOC recommendation. FSOC issues formal recommendations under 12 U.S.C. § 5330 (regarding systemically important non-bank financial companies) and § 5329 (regarding systemic risk). No such recommendation was issued on 4 March 2026. The SEC has not published a proposed rule specifically addressing AI in securities regulation as of 9 March 2026, and Chair Atkins's remarks do not constitute a notice of proposed rulemaking under the Administrative Procedure Act, 5 U.S.C. § 553.

Source: SEC Chair Paul S. Atkins, "Remarks at Financial Stability Oversight Council Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles," delivered 4 March 2026, available at https://www.sec.gov/newsroom/speeches-statements/atkins-remarks-at-financial-stability-oversight-council-artificial-intelligence-innovation-series-roundtable-030426. Confirmed 9 March 2026.

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