Sen. Warren Pushes AI Bubble Transparency Act to Track Risks in Tech Lending
The AI Bubble Transparency Act is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Banking, Housing, and Urban Affairs for review. The bill is actively moving as it waits for the committee to discuss it further.
This bill faces significant opposition from those who view it as unnecessary regulation on the tech and banking sectors. Without broad bipartisan support, it is unlikely to move past the committee stage.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Small banks and financial firms under the thresholds ($10B in assets or $500M in AI exposure) are explicitly exempted from reporting. However, the small number of small business owners who run larger financial firms with significant AI-sector lending could face new compliance costs. For the vast majority, there is no direct impact.
“The Director may exempt small financial companies, including banks with less than $10,000,000,000 in assets, and financial companies with less than $500,000,000 of financial exposure to the instruments described in paragraph (1) from the reporting requirements under this section.”
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Senator Elizabeth Warren introduced the AI Bubble Transparency Act, requiring financial institutions to report their debt and equity exposure to AI companies, including chip makers and data centers, to the Office of Financial Research to monitor potential systemic risks.
The AI Bubble Transparency Act would mandate firms to disclose their exposure to entities like chip makers and cloud providers. Warren warned that AI companies rely on "shadowy forms of debt" that could trigger a financial crisis if unmonitored.
The proposed legislation targets the "opaque debt markets" used to fund AI buildouts. It would require Wall Street firms to disclose details on loans, interest rates, and collateral for AI-related investments to the Office of Financial Research.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
AI Bubble Transparency Act
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