US representatives on the House Financial Services Committee are lining up behind Donald Trump’s push for a single national AI rulebook, warning that a growing maze of state regulations could choke innovation in finance while driving up costs for consumers.
At a hearing focused on exploring how artificial intelligence (AI) is being used in the financial services and housing sectors, Chairman French Hill says the technology has the potential to reshape how financial firms operate, from risk management, fraud mitigation and more.
But Hill warns that the gains will only come if the US embraces a regulatory policy that spurs innovation and adoption.
“Identifying gaps and obstacles in our regulatory frameworks will help Congress create an AI landscape where innovation can flourish without unnecessary barriers, while ensuring robust consumer protections, and risk-based, technology-neutral regulation.”
South Carolina representative William Timmons says that a patchwork of AI state laws will not only weaken consumer protection but also pose a threat to America’s dominance in the global AI race.
“If the United States is going to remain a global leader in innovation, we must adopt clear and harmonized rules that support technological progress while also protecting consumers and preserving market integrity… Without a unified federal framework that replaces duplicative and contradictory state rules, we risk higher compliance costs, slower innovation and weaker protection for consumers.”
Indiana’s Marlin Stutzman says it is not in the best interest of the US to overregulate AI.
“While President Trump has set the country back on track towards innovation and American AI dominance on the world stage, we cannot have Biden’s allies in anti-innovation states like California and Massachusetts setting the trend of overregulating AI.”
And California representative Kim Young calls for a unified AI regulatory framework following the passing of California’s Transparency in Frontier Artificial Intelligence Act (TFIA).
“Earlier this year, the state of California, where I’m from, passed S.B. [53] that would unfairly regulate AI and impose heavy compliance burdens on companies. Now, states across the country are looking to this California model as a basis for developing their own artificial intelligence regulations. Therefore, there is an urgency for Congress to establish a federal framework for AI.”
Earlier this week, President Donald Trump said he plans to issue an executive order establishing a single national rulebook for AI.
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