Sens. Ted Cruz, R-Texas, and Bill Hagerty, R-Tenn., introduced legislation Tuesday, the Protecting Innovation in Investment Act, to prevent the Securities and Exchange Commission from finalizing, implementing or enforcing its Predictive Data Analytics rule.
The senators maintain the bill would "protect innovation in investment" by preventing the rule from going into effect.
"New technologies over the last decade have allowed more Americans to access the stock market than ever before," Cruz said in a statement. "By waging a war on technology, the SEC would hurt the very investors that it claims to be protecting — Americans saving for retirement. Our bill will halt this crusade in its tracks by making sure this rule never sees the light of day."
The SEC, according to Hagerty, "should demonstrate the ability to securely manage its own technology before seeking to micromanage and hinder innovative technologies at private firms. I'm pleased to join this legislation that would block the SEC from enacting this ill-conceived rule."
The rule, intended to address conflicts of interest caused by artificial intelligence and other technology, has received pushback since being proposed last July. It is expected to be finalized this year.
"American consumers will ultimately bear the cost of yet another SEC attempt to overregulate financial markets," Hagerty said in the statement.
Cruz and Hagerty maintained that "while the title of the SEC's rule mentions predictive data analytics, giving it the illusion of specifically targeting cutting edge technology, the definition of covered technology would capture everything from simple spreadsheets to artificial intelligence."
