,,ii  #aah? ,,congress  #a/ ,session    
,s4 #ceed  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #ah1 #bjbc    
,mr4 ,w>n] 7= himself & ,mr4 ,k5n$y7    
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,f9ancial ,/ability  
,act ( #bjaj to provide ! ,f9ancial     
,/ability ,ov]sight ,c\ncil ) duties    
reg>d+ artificial intellig5ce 9 !       
f9ancial sector1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,f9ancial ,artificial ,intellig5ce ,risk
 ,r$uction ,act or ! ,,fairr ,act4  #b4 
,def9itions ,9 ?is ,act1 ! t]m          
artificial intellig5ce has ! mean+ giv5 
! t]m 9 section #ejjb ( ! ,national     
,artificial ,intellig5ce ,initiative    
,act ( #bjbj 7#ae ,u4,s4,c4 #idja74  #c4
 ,special provisions reg>d+ artificial  
intellig5ce 9 ! f9ancial sector  7a7 ,9 
g5]al ,subtitle ,a ( ! ,f9ancial        
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecba et seq47 is am5d$ by add+ at ! end

 ! foll[+3  #abf4 ,special provisions   
reg>d+ artificial intellig5ce 9 !       
f9ancial sector  7a7 ,coord9ation1      
report1 & recomm5dations ,! ,c\ncil %all
 coord9ate ) memb] ag5cies ) reg>d to   
pot5tial risks to ! /ability ( !        
f9ancial sy/em pos$ by artificial       
intellig5ce1 includ+--  7#a7 direct !   
,(fice ( ,f9ancial ,rese>*1 z           
appropriate1 to conduct rese>* into !   
uses ( artificial intellig5ce by        
f9ancial in/itutions & entities provid+ 
s]vices to or p]=m+ functions on behalf 
( f9ancial in/itutions2  7#b7 id5tify   
?reats to ! /ability ( ! f9ancial sy/em 
pos$ by ! use ( artificial intellig5ce  
tools & te*nologies1 su* z--  7,a7 !    
g5]ation & use ( false repres5tations ( 
ev5ts or ! lik5ess1 spee*1 or actions ( 
p]sons by malign actors to manipulate   
f9ancial m>kets1 in/itutions1 or        
in/rum5ts1 or to cause disruption 9     
f9ancial m>kets &2  7,b7 any o!r acts or
 practices associat$ ) ! use or         
assi/ance ( artificial intellig5ce tools

 or te*nologies t ?reat5 ! /ability ( ! 
f9ancial sy/em2  7#c7 n lat] ?an #ahj   
days aft] ! date ( enactm5t ( ?is       
section1 9 consultation ) ! memb]       
ag5cies1 f9ancial in/itutions1          
securities m>ket p>ticipants1 & entities
 provid+ s]vices to or p]=m+ functions  
on behalf ( f9ancial in/itutions or     
securities m>kets p>ticipants1 submit to
 ! ,committee on ,bank+1 ,h\s+1 & ,urban
 ,affairs ( ! ,s5ate & ! ,committee on  
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives a report t-- 7,a7       
id5tifies ! ?reats describ$ 9 p>agraph  
7#b72  7,b7 id5tifies specific gaps 9 ! 
exi/+ regulations1 guidance1 &          
exam9ation /&>ds ( ! memb] ag5cies t    
prev5t effective & compreh5sive         
responses by ea* ( ! memb] ag5cies to ! 
?reats describ$ 9 p>agraph 7#b72 &  7,c7
 makes specific recomm5dations =        
address+ ! gaps id5tifi$ 9 subp>agraph  
7,b71 includ+1 z appropriate1           
recomm5dations reg>d+ implem5tation ( ! 
recomm5dations 9 ! ,cyb]security        

,in=mation ,%eet publi%$ by ! ,national 
,security ,ag5cy1 ,f$]al ,bureau (      
,inve/igation1 & ,cyb]security &        
,infra/ructure ,security ,ag5cy on      
,septemb] #ab1 #bjbc2 &  7#d7 id5tify1 z
 appropriate1 opportunities = ! use (   
artificial intellig5ce te*nologies 9    
f9ancial regulation & sup]vision1       
specify+ t any use ( artificial         
intellig5ce by ! ag5cies 9 regulation & 
sup]vision %\ld be transp>5t & disclos$ 
to _! regulat$ entities z appropriate4  
7b7 ,congressional review ,n lat] ?an   
#cj days aft] ! date on :i* ! relevant  
congressional committees receive !      
report requir$ "u subsection 7a71 !     
committees %all review ! report & submit
 comm5ts & recomm5dations !reon4  7c7   
,implem5tation ( c\ncil recomm5dations  
7#a7 ,9 g5]al ,^u review ( comm5ts &    
recomm5dations "u subsection 7b71 !     
,c\ncil %all comm5ce action "u !        
proc$ures prescrib$ 9 section #abj )    
reg>d to implem5tation ( !              
recomm5dations by ea* ( ! memb] ag5cies4

  7d7 ,congressional review act ,!      
provisions ( *apt] #h ( title #e1 ,unit$
 ,/ates ,code1 %all apply z appropriate 
to rules issu$ by ! memb] ag5cies "u ?is
 section4  7e7 ,sc5>io-,bas$ ex]cises ,!
 ,f$]al & ,bank+ ,in=mation             
,infra/ructure ,committee sponsor$ by ! 
,presid5t's ,work+ ,gr\p on ,f9ancial   
,m>kets %all1 9 consultation )          
private-sector entities & o!r relevant  
gov]nm5tal entities-- 7#a7 initiate a   
s]ies ( sc5>io-bas$ ex]cises to te/ !   
effectiv5ess ( def5ses aga9/ f9ancial   
m>ket disruptions associat$ ) ! use or  
assi/ance ( artificial intellig5ce      
te*nologies2 &  7#b7 make recomm5dations
 = ongo+ improvem5ts 9 detection1       
prev5tion1 & mitigation ( su*           
disruptions4  4  7b7 ,te*nical & con=m+ 
am5dm5t ,! table ( sections = !         
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act 7#ab ,u4,s4,c4
 #ecja7 is am5d$ by ins]t+ aft] ! item  
relat+ to section #abe ! foll[+3  #abf4 
,special provisions reg>d+ artificial   

intellig5ce 9 ! f9ancial sector4  4  #d4
 ,enhanc$ au?ority to ov]see ?ird-p>ty  
provid]s ( artificial intellig5ce & o!r 
s]vices to f9ancial in/itutions ,section
 #bjf;,a ( ! ,f$]al ,cr$it ,union ,act  
7#ab ,u4,s4,c4 #aghf;a7 is am5d$-- 7#a7 
9 subsection 7a77#a71 by /rik+ t &      
ins]t+ an2  7#b7 9 subsection 7c77#b71 9
 ! matt] prec$+ subp>agraph 7,a71 by    
ins]t+ 1 9 a mann] & me?od prescrib$ by 
! ,bo>d1 aft] ,bo>d 2 &  7#c7 by /rik+  
subsection 7f74  #e4 ,regulation (      
s]vice provid]s by ! f$]al h\s+ f9ance  
ag5cy ,subp>t ,a ( "p #b ( subtitle ,a (
 ! ,f$]al ,h\s+ ,ent]prises ,f9ancial   
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #deda et seq47 is am5d$ by    
add+ at ! end ! foll[+3  #acbi4         
,regulation & exam9ation ( c]ta9 s]vice 
provid]s ,:5ev] a regulat$ entity or !  
,(fice ( ,f9ance causes to be p]=m$ =   
itself1 by contract or o!rwise1 any     
activity t is p]missible = ! regulat$   
entity or ! ,(fice ( ,f9ance1 :e!r on or
 (f its premises--  7#a7 su* p]=mance   

%all be subject to regulation &         
exam9ation by ! ,director to ! same     
ext5t z if su* activity 7 be+ p]=m$ by  
su* entity or ,(fice itself on its own  
premises2 &  7#b7 ! regulat$ entity or  
,(fice ( ,f9ance %all notify ! ,director
 ( ! exi/5ce ( ! s]vice relation%ip n   
lat] ?an #cj days aft] ! e>li] (--  7,a7
 mak+ ( su* s]vice contract2 or  7,b7 ! 
p]=mance ( ! activity by ! s]vice       
provid]4  4  #f4 ,treble p5alties       
,section #ba7;d77#c7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#ghu7d77#c77 is am5d$ by add+ at ! end !
 foll[+3  7,e7 ,am\nt ( p5alty =        
violation involv+ ma*9e-manipulat$ m$ia 
,! am\nt ( a civil p5alty impos$ "u     
subp>agraph 7,a77i7 = a violation       
involv+ ! use ( ma*9e-manipulat$ m$ia1 z
 def9$ 9 section #egbd ( ! ,damon ,paul 
,nelson & ,mat!w ,"y ,poll>d            
,intellig5ce ,au?orization ,act =       
,fiscal ,ye>s #bjah1 #bjai1 & #bjbj 7#ej
 ,u4,s4,c4 #cjbd note71 %all n exce$ #c 
times ! p5alty o!rwise det]m9$ "u clause

 7i71 7ii71 or 7iii7 ( subp>agraph 7,b74
  4  #g4 ,liability ,! ,securities      
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;a et seq47 is am5d$ by add+ at ! end
 ! foll[+3  #db4 ,liability  7a7        
,liability ,any p]son :o1 directly or   
indirectly1 deploys or causes to be     
deploy$1 an artificial intellig5ce model
 %all be deem$ to satisfy ! sci5t]1 o!r 
/ate ( m9d1 or neglig5ce requirem5ts ( !
 ,f$]al securities laws ) reg>d to any &
 all acts1 practices or conduct engag$ 9
 by su* model1 & any outcome result+ f !
 use ( su* model1 & %all be liable to ! 
same ext5t z if su* p]son _h committ$   
su* acts1 practices or conduct directly1
 unless su* p]son took reasonable /eps  
to prev5t su* acts1 practices1 conduct &
 outcome1 :i* may include b are n limit$
 to e/abli%+1 ma9ta9+ & en=c+ writt5    
policies & proc$ures reasonably design$ 
to prev5t violations ( ! ,f$]al         
securities laws4  7b7 ,waiv]s ,civil    
liability ( a develop] ( an artificial  
intellig5ce model = design defects or   

brea*es ( impli$ w>ranties ) respect to 
su* a model out ( :i* arise a violation 
( ! ,f$]al securities laws may n be     
waiv$4  4