Treasury Secretary Scott Bessent has proposed the establishment of an independent regulatory agency to oversee frontier AI models, which would be modeled after FINRA and report to the Securities and Exchange Commission. This initiative aligns with the Trump administration’s recent executive order from June 2026, which emphasizes coordinated efforts on AI cybersecurity and secure model deployment across multiple agencies, including the Treasury. Additionally, the Treasury has been engaged in discussions regarding governance and risk management related to AI innovations, as highlighted by the conclusion of its AI Innovation Series in the same month.

Scott Bessent: Scott Bessent is the U.S. Treasury Secretary focused on economic policy and financial resilience amid technological change. He has supported recent White House executive orders promoting AI innovation alongside security measures and participated in public-private AI discussions. In this news, he played a key role in developing the proposal for a FINRA-like agency to oversee advanced AI models.
U.S. Treasury: The U.S. Treasury is the executive department responsible for managing federal finances, economic policy, and financial stability oversight. It has recently focused on AI’s implications for the financial system through initiatives like roundtables on governance and risk. In this news, the department’s leadership under Secretary Bessent contributed to a proposal for specialized AI regulation reporting to the SEC.
Securities and Exchange Commission: The Securities and Exchange Commission is the primary federal agency overseeing securities markets, investor protection, and corporate disclosures. It maintains an AI Task Force to integrate AI tools internally while addressing market impacts of the technology. In this news, the proposed independent AI regulator would report directly to the SEC, extending its oversight role into frontier model safety.

AI Policy Development: The Trump administration issued an executive order in early June 2026 directing coordinated efforts on AI cybersecurity and secure model deployment involving multiple agencies including Treasury.
Financial System Focus: Treasury concluded its AI Innovation Series in June 2026 with roundtables addressing governance, risk management, and financial stability implications of advancing AI technologies.