In prerecorded remarks at a committee meeting, U.S. Securities and Exchange Commission Chairman Paul Atkins said the growing use of artificial intelligence does not justify departing from the SEC’s longstanding materiality standard for corporate disclosures. Consistent with his broader materiality-centered disclosure agenda, Atkins argued that AI may help analyze filings but does not reduce the cost to issuers and shareholders of producing them. Because AI can generate errors and does not always distinguish fact from fiction or material from immaterial information, it should complement rather than replace human judgment. The SEC will focus on market rules and oversight rather than prescribe which AI models firms must use. Atkins also reiterated his support for the SEC’s June proposal to rescind Regulation NMS Rules 611 and 610(e). He argued that the Trade-Through Rule has contributed to fragmented liquidity, additional trading venues and a more complex, costly and less transparent order execution market. SEC staff is reviewing public feedback on the proposal, with views from the committee’s market structure panel also expected to inform the regulatory approach.
2026-09-10U.S. Securities & Exchange Commission
U.S. Securities and Exchange Commission Chair Paul Atkins reiterates materiality standard for AI disclosures and case for Trade-Through Rule repeal
U.S. Securities and Exchange Commission Chairman Paul Atkins said AI does not justify weakening the materiality standard for corporate disclosures and should complement human judgment rather than replace it. He also reiterated the case for rescinding Regulation NMS Rules 611 and 610(e), arguing that the Trade-Through Rule has fragmented liquidity and increased market complexity.