Nashville Standard

United States Senator Bill Hagerty (R-TN) appeared on CNBC's Squawk Box to discuss his opposition to the Securities and Exchange Commission's (SEC) proposal to regulate Artificial Intelligence (AI) and the Senate border bill.

Regarding the SEC's proposal, Hagerty expressed his concerns about the broad scope of the rule and its potential impact on the accessibility of the marketplace for retail investors. He stated, "This is another example of poor rulemaking coming out of Washington, in particular the [Securities and Exchange Commission] in this case... It would encompass anything from a small calculator on a website to a spreadsheet; it’s not just focused on AI." Hagerty emphasized the need for a more targeted and focused approach to regulate AI, suggesting that the SEC should rely on existing fiduciary laws and allow the technology to evolve naturally.

Hagerty also addressed the issue of potential conflicts of interest in AI advising investors, stating that the same fiduciary obligations that apply to humans should apply to AI. He argued that the current rules on the books adequately deal with conflicts of interest and that the SEC's proposed rule is an overreach that could stifle innovation.

When discussing the federal government's role in keeping up with innovative technology, Hagerty acknowledged that there are ongoing discussions about different approaches to regulation. However, he expressed concern about bureaucrats without market experience attempting to anticipate where the technology is moving. Hagerty emphasized the importance of understanding and supporting innovation in the United States, rather than stifling it with excessive regulation.

Turning to the Senate border bill, Hagerty voiced his opposition, stating, "What I want to see is a bill that actually provides border security." He criticized the bill for incentivizing more illegal immigration and argued for airtight legislation that would force President Biden's hand to enforce existing laws. Hagerty expressed concern that the bill, as currently drafted, would tie the hands of the next administration and send a message to cartels that there is a new path to enter the United States.

In conclusion, Senator Hagerty opposes both the SEC's proposal to regulate AI and the Senate border bill. He believes that a more targeted and focused approach is needed for regulating AI, and that border security should be prioritized in immigration legislation.