Unleashing AI Innovation in Financial Services Act

This bill establishes regulatory sandboxes for financial institutions to test AI-driven products under modified regulatory requirements. It directly affects banks, brokers, credit unions, and other entities regulated by agencies like the SEC, Federal Reserve, or CFPB. Institutions can apply for temporary waivers of specific rules by submitting detailed proposals demonstrating public benefit, consumer protection, and no systemic risk, with agencies required to review applications within 90 days. Approved projects must operate under defined limits, terminate within a year, and report outcomes annually to Congress.