FAIRR Act

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Financial regulators would get new powers to oversee artificial intelligence risks in banking.

This bill would give financial regulators more power to monitor and manage risks from artificial intelligence (AI) in banks and other financial companies. It would require agencies like the SEC to create new rules for how financial firms use AI. This aims to protect the financial system and consumers from potential problems caused by AI.

What Would Change

Today, financial regulators have some general oversight, but specific rules and coordinated efforts for artificial intelligence risks in the financial sector are less defined. After this bill, key financial agencies would be required to actively study, report on, and create new rules for how financial companies use AI. This would lead to more direct oversight and testing of AI's impact on financial stability.

Key Provisions

Requires the Financial Stability Oversight Council to study and report on risks from artificial intelligence in the financial system.
Requires the Securities and Exchange Commission to create new rules for how certain financial companies use artificial intelligence.
Gives the National Credit Union Administration more power to examine outside companies that provide services, including AI, to credit unions.
Gives the Federal Housing Finance Agency more power to examine outside companies that provide services, including AI, to housing finance companies like Fannie Mae and Freddie Mac.
Requires federal committees to run practice exercises to test defenses against financial market disruptions caused by artificial intelligence.

View on Congress.gov

S 5358 · 119th Congress · AI Summary by gemini-2.5-flash · 8/10

FAIRR Act

What Would Change

Key Provisions

Lobbying Activity