US HB9309: Unleashing AI Innovation in Financial Services Act

In one paragraph

The federal H.R. 9309 (Unleashing AI Innovation in Financial Services Act) would have required each financial regulatory agency to set up a regulatory sandbox where regulated entities could test AI projects with waivers of rules. Agencies would have had 90 days to decide applications, and an undecided application after a 90-day extension would be deemed approved. Introduced August 6, 2024 and referred to the House Financial Services Committee; it died when the 118th Congress ended on January 3, 2025.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

None: the bill died when the 118th Congress ended on January 3, 2025 and never became law. Had it passed, financial firms could have applied for AI test sandboxes; it set no duties for them.

Key provisions

1. 1The Federal Reserve Board, FDIC, OCC, SEC, CFPB, NCUA and FHFA would each have had to establish a regulatory sandbox for AI test projects without unnecessary or unduly burdensome regulation or expectation of retroactive enforcement actions; the business of insurance is excluded
2. 2A regulated entity could apply with a description, an alternative compliance strategy, a demonstration that the project would serve the public interest or similar listed benefits and would not present a systemic or national security risk, a termination date, size limits and an economic impact estimate
3. 3The agency would have had to decide within 90 days and approve if the applicant showed it was more likely than not that the requirements were met; the agency could extend by 90 days, after which an undecided application was deemed approved
4. 4A denial needed written reasons, and no enforcement could start until 30 days later; fraud enforcement and injunctions against projects posing an immediate danger to consumers were preserved
5. 5Within 180 days after enactment each agency would have had to issue regulations after a 45-day comment period; termination dates not earlier than 1 year after approval; annual reports to the Senate Banking and House Financial Services committees
6. 6Introduced August 6, 2024 and referred to the House Financial Services Committee; no other action

Latest legislative action

Aug 6, 2024. Referred to the House Committee on Financial Services.

Sponsors