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Financial Oversight Draft Bill Gets Early Start on Democrats’ AI Agenda

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Financial Oversight Draft Bill Gets Early Start on Democrats’ AI Agenda

Democrats are preparing a slate of artificial intelligence bills for when they take control of Congress in January.

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Rep. Bill Foster of Illinois got a head start Thursday (Nov. 5), releasing a discussion draft that would enlist the Federal Reserve in testing how regulators can spot financial stress as AI-powered services and round-the-clock payments accelerate its spread, according to a press release.

Foster’s Real-Time Regulatory Study Act of 2026 would direct the Federal Reserve Board to work with other financial regulators to develop, test and publicly release open-source demonstration software, the release said. The project would assess whether regulators could get real-time information about the health of banks and other financial institutions while making regulatory reporting easier and less costly. The Fed would seek technical contributions from financial institutions, technology providers, open-source organizations and researchers.

“With advances in AI creating new cybersecurity threats and financial risks, it’s more important than ever that we modernize the way we monitor the health of our financial institutions,” Foster said in the release.

Foster’s office said financial services powered by AI and payments that move at all hours can help transmit stress faster across the financial system, Roll Call reported Friday (Nov. 6). More timely information and automated tools could give supervisors a clearer picture of market conditions as they change. The tools could help institutions and regulators respond sooner, improve access to emergency funding and prepare for the orderly resolution of a failing bank.


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