Updated
Updated · Bloomberg · Jul 18
Trump Administration Weighs Finra-Like AI Watchdog for Top Models as SEC-Linked Plan Reaches White House
Updated
Updated · Bloomberg · Jul 18

Trump Administration Weighs Finra-Like AI Watchdog for Top Models as SEC-Linked Plan Reaches White House

3 articles · Updated · Bloomberg · Jul 18

Summary

  • A proposal now under White House Chief of Staff Susie Wiles’ review would create an independent body to vet the safety of leading AI models.
  • Treasury Secretary Scott Bessent helped develop the plan, which would mirror the Financial Industry Regulatory Authority by operating independently while reporting to the SEC.
  • The idea gained traction after Silicon Valley leaders complained that recent US efforts to slow releases of cutting-edge AI systems were ad hoc and unpredictable.
  • If adopted, the framework would give the Trump administration a more formal channel for overseeing frontier AI models with industry input.

Insights

Can a Wall Street-style regulatory model truly safeguard against the catastrophic risks posed by advanced artificial intelligence?
With AI's inner workings often a 'black box', how can any agency reliably audit its safety before deployment?