SEC Rule Might Make It Impossible to Use Tech to Serve Customers


Elon Musk posted on X, “Our civilization is being slowly strangled to death one regulation at a time.” He linked to posts by the co-founder and CEO of Robin Hood App, Vlad. It seems that the SEC has a new rule that would make it too difficult to use technology to serve customers. The SEC can’t even cite any harm that warrants the rule in the first place.

This is your government at work.

“The SEC has proposed a new “predictive data analytics” (PDA) rule that would severely curb financial services firms from using technology to serve customers,” Vlad began. “@RobinhoodApp has voiced opposition, and I strongly stand behind it. This would have a major impact on investors.

“The SEC aims to protect investors with this rule, targeting “predictive data analytics” and AI. However, the rule is so broad, it would demand costly manual reviews on almost all tech applications, even basic things like color choices in app design and simple A/B testing.

“The SEC admitted that the rule would be so difficult and costly to comply with, maybe even impossible, that firms might be forced to stop using technology to serve customers altogether.

“And, they have yet to identify any specific actual investor harm caused by technology. The real harm is that it will become more difficult and expensive for customers to invest and trade.

@RobinhoodApp’s mission is to make markets accessible to everyone through innovation. The progress of the industry and retail investing shouldn’t be reversed. Read about our stance at

“This rule would bring us back in time. SEC rules should ensure customers have protections when they invest, while also promoting the benefits investors enjoy from responsible innovation and technology. The PDA rule is not one of them, and @SECGov should drop it. To help stop this, send your own letters to the SEC at”

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