Treasury Secretary Scott Bessent is pushing for the creation of an independent regulatory agency specifically designed to vet the safety of frontier AI models. The proposed body would be modeled after FINRA, the self-regulatory organization that oversees broker-dealers in the securities industry, and would report directly to the SEC.
The plan traces back to a June 2, 2026 Executive Order that established a voluntary 30-day pre-release review process for designated frontier AI models, with a particular focus on cybersecurity risks. Bessent’s proposal is the next logical step: turning that temporary framework into something permanent and institutional.
The proposal didn’t emerge from some abstract policy debate. It came from complaints. AI companies have reportedly grown frustrated with unpredictable government interventions that have disrupted model releases.
Bessent has been building toward this moment for months. He led Treasury’s AI Innovation Series, which concluded in May 2026, convening banks and AI developers to hash out risk management strategies for advanced AI technologies. Anthropic’s Mythos model was specifically discussed in those sessions.
The proposal is currently non-public and under review by the White House, with Chief of Staff Susie Wiles reportedly involved in the deliberations.
