Rushmore State News

A bipartisan group of U.S. lawmakers has reintroduced the Unleashing AI Innovation in Financial Services Act, a bill aimed at supporting artificial intelligence (AI) innovation within the financial services sector. The legislation was brought forward by Senators Mike Rounds (R-S.D.), Martin Heinrich (D-N.M.), Thom Tillis (R-N.C.), Andy Kim (D-N.J.), and Representatives French Hill (R-Ark.), Chairman of the House Financial Services Committee, Ritchie Torres (D-N.Y.), Bryan Steil (R-Wis.), and Josh Gottheimer (D-N.J.).

The proposed act would require federal financial regulatory agencies to set up Innovation Labs, allowing regulated entities to test AI projects in controlled environments. These labs are intended to provide a safe space for experimenting with new technologies while maintaining oversight.

The Trump administration’s recently released AI Action Plan recommends establishing regulatory AI Centers of Excellence to facilitate testing and information sharing among agencies, specifically highlighting the Securities and Exchange Commission as a potential participant. The Unleashing AI Innovation in Financial Services Act aligns with this approach by proposing similar labs at several key financial regulators, including the SEC. The initiative has received backing from the U.S. Chamber of Commerce.

Senator Mike Rounds stated: “The financial services industry has been using AI for decades, but companies must have the opportunity to innovate as major advancements continue to develop. The Unleashing AI Innovation in Financial Services Act is designed to foster innovation and economic growth by providing a controlled environment where new financial products and services that use AI can be tested. I’m pleased that the Trump administration shares this vision, as outlined in their recent AI Action Plan. By creating these innovation labs, we aim to strike a balance between encouraging innovation and maintaining consumer protection, ultimately strengthening our financial system and keeping our country at the forefront of global financial technology.”

Senator Martin Heinrich commented: “To unlock AI’s full potential and ensure it is deployed responsibly, we need regulatory guardrails that are informed by real-life use cases. Our Unleashing AI Innovation in Financial Services Act does exactly this by enabling the private sector and government agencies to work together and encourage innovation that protects consumers.”

Representative French Hill said: “As AI continues to evolve, we must understand its full impact because it will touch every part of our lives. The Unleashing AI Innovation in Financial Services Act ensures that federal financial agencies allow the companies they oversee to experiment with AI through regulatory sandboxes. Our Committee looks forward to exploring AI and its uses in the financial services industry. We are committed to fostering innovation and collaboration between the public and private sectors. I’m grateful to my bipartisan House colleagues and to Senator Mike Rounds for leading this effort in the Senate. Advancing this bill is key to keeping the U.S. at the forefront of AI innovation in financial services.”

Representative Ritchie Torres added: “In the face of rapid AI advancement, Congress has a responsibility to ensure responsible innovation that protects consumers, strengthens our economy, and maintains American leadership. I’m proud to co-lead this bipartisan, bicameral effort alongside Congressman French Hill to create AI Innovation Labs, giving regulators a safe and structured way to engage with cutting-edge technologies. This bill ensures that innovation and oversight go hand in hand.”

If enacted, the legislation would establish these regulatory labs at multiple agencies: Federal Reserve, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Securities and Exchange Commission (SEC), Consumer Financial Protection Bureau (CFPB), National Credit Union Administration (NCUA), and Federal Housing Finance Agency (FHFA). Entities seeking participation would apply through their primary regulator with requirements demonstrating public interest benefits such as improved efficiency or competitiveness without posing systemic risk.

More details on bill text can be found here.