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US AI regulation stalls as White House and Congress remain divided

White House work on a proposed oversight body is reportedly in limbo, while congressional bills face uncertain support and procedural hurdles.

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Owen Mercer
Markets and Finance Editor
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Source: WIRED · View original source
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ARTIFICIAL INTELLIGENCE

US artificial-intelligence regulation appears unlikely in the near term, with the White House pausing work on a proposed oversight body and Congress divided over competing bills, according to WIRED.

The White House and Treasury Department had reportedly begun developing a preliminary framework for a FINRA-style body that would oversee frontier AI models through leading laboratories’ self-regulation. The proposal was left in limbo after technology executives opposed it and President Donald Trump rejected overt regulation.

Trump has also described AI safety concerns as a “hoax” in a Truth Social post, according to WIRED. The White House has not produced another oversight proposal that is seriously under consideration, the report said.

Congress faces its own obstacles. The bipartisan Frontier Act would allow Commerce Department auditors to monitor AI laboratories, report critical safety incidents and recommend halting development if a model posed a catastrophic risk. House Democrats are reportedly considering attaching parts of its audit provisions to must-pass government funding legislation.

The bill’s prospects remain uncertain. The House has no scheduled voting days until after the midterm elections, and it is unclear whether the measure has enough votes or whether Republican Speaker Mike Johnson would allow it to reach the floor. Concerns also remain over regulatory capture and whether China would continue developing frontier systems during any US pause.

Two competing bills would give the government powers to shut down AI models, but technology executives have shown limited enthusiasm. The legislative outlook could change if a major AI incident or another significant event prompts Congress to act.

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