Banking and Finance Law Daily Wrap Up, FINANCIAL TECHNOLOGY—Warren seeks additional AI hearing with administration officials, (Jun 9, 2026)
Organizations Mentioned:Financial Stability Oversight Council
According to Warren, “it has grown increasingly clear that President Trump and his Administration are failing to adequately address the significant threats that AI poses to the American public.”
As the Senate Banking Committee prepares to hold a hearing on artificial intelligence—“AI and the American Dream: Promoting Innovation, Affordability, and American Dominance”—Ranking Member Elizabeth Warren (D-Mass.) has written to Chairman Tim Scott (R-S.C,), urging that the committee conduct an additional hearing on AI policy with Trump administration officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. “We need to hear directly from Trump Administration officials on the President’s approach to regulating AI companies, as well as the Administration’s failure to meaningfully oversee the industry,” Warren said in her letter to Scott.
Warren criticized the administration’s current approach to regulating the AI industry. According to Warren, President Trump’s recent executive order on AI fails to meaningfully protect the financial system from cybersecurity risks. “Rather than developing strict, mandatory oversight standards for AI companies, it instead establishes a model-review process that is entirely optional—leaving AI companies free to ignore the Administration should these voluntary processes become inconvenient,” Warren said. The senator also criticized what she characterized as a “a dangerous deregulatory agenda” that is being implemented by Bessent “that is making our banks more vulnerable to AI-enabled cyberattacks and our financial system more vulnerable to an AI-related shock.” Warren said that “Secretary Bessent, as head of the Financial Stability Oversight Council (FSOC), needs to answer questions about how the Administration will address the risk building in our financial system, prevent a potential crash, and ensure American families do not have to bailout Big Tech billionaires.”
The senator also criticized the Commerce Department. Warren contended “the Commerce Department’s mismanagement of U.S. export controls has resulted in loopholes that may have allowed the most advanced AI chips to flow to companies with ties to China’s military.” She said that “Secretary Lutnick should appear before the Committee to testify about the national security implications.”
LegislativeActivity: AINews BankingOperations CrimesOffenses FinancialStability FinTech OversightInvestigations PrudentialRegulation