U.S. House Financial Services Committee advances bills to address AI fraud and regulatory modernization

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House advances AI fraud bills

Highlights

The House Financial Services Committee advanced bills including the AI Plan Act and Unleashing AI Innovation in Financial Services Act to address AI-enabled fraud and support regulatory sandboxes.
The GUARD Act aims to strengthen law enforcement against financial scams targeting seniors by expanding federal grant access and coordination, with seniors losing billions each year.
The Price Stability Act of 2025 would refocus the Federal Reserve on managing inflation and prioritize long-term economic growth and stability.

Committee agenda centers on AI safeguards

As reported by the House Committee on Financial Services, Chairman French Hill says the legislation under review is designed to help regulators, financial institutions and law enforcement respond to increasingly sophisticated fraud schemes that use artificial intelligence and other emerging technologies.

In prepared remarks for the committee markup, Hill says AI is transforming the financial services industry while also giving bad actors new ways to scale scams and avoid detection. He says the U.S. needs a coordinated national approach to detect, prevent and respond to AI-enabled financial crime, arguing that outdated regulatory tools are not sufficient for current threats.

The package includes the AI Plan Act, led by Representatives Nunn and Himes, which directs the executive branch to develop a comprehensive plan to protect the financial system and sensitive data from AI misuse. Hill also highlights the Unleashing AI Innovation in Financial Services Act, introduced with Subcommittee Chairman Bryan Steil and Representatives Gottheimer and Torres, which promotes regulatory sandboxes for federal agencies to test emerging technologies in a controlled setting.

Another measure, Representative Flood's Bank Fraud Technology Advancement Act, calls on federal regulators to study how institutions use advanced fraud detection tools and to create a voluntary pilot program to help smaller banks and credit unions gain access to those technologies. Hill says the FUTURES Act from Representatives Stutzman and Foster would also modernize the technological capabilities of federal financial regulators and identify gaps in their current systems.

Fraud enforcement and economic policy implications

The committee is also considering the GUARD Act, led by Representatives Nunn, Gottheimer and Fitzgerald, which is intended to strengthen law enforcement investigations into financial scams targeting older Americans. Hill says the bill would expand access to federal grant funding for state, local and Tribal agencies, improve coordination with federal authorities and broaden the use of blockchain tracing tools in illicit activity probes.

Hill describes elder financial fraud as one of the most damaging crimes in the country, saying seniors lose billions of dollars each year and many victims never recover their losses. He says the proposed legislation is meant to give investigators more resources and coordination to pursue scammers and support victims.

Beyond fraud and technology oversight, the committee markup includes Hill's Price Stability Act of 2025. He says the bill would refocus the Federal Reserve on price stability and keep the central bank concentrated on managing inflation as part of a broader effort to support long-term economic growth and stability.

Our earlier article on Alphabet’s AI and cloud momentum reviewed how strong quarterly results and continued Google Cloud growth are being supported by enterprise demand and deeper Gemini integration across Google’s product ecosystem. It also noted that massive AI infrastructure spending and mounting regulatory pressure remain key risks, with investors watching cloud profitability, AI commercialization progress and the trajectory of antitrust scrutiny.

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