SenateS. 4743119th Congress

AI Bubble Transparency Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4743 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4743

To require the Office of Financial Research to compel data relating to 
the financing of artificial intelligence development, provide that data 
to Congress, and issue recommendations to financial regulatory agencies 
   and Congress to mitigate financial stability risk, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 10, 2026

 Ms. Warren (for herself and Mr. Blumenthal) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To require the Office of Financial Research to compel data relating to 
the financing of artificial intelligence development, provide that data 
to Congress, and issue recommendations to financial regulatory agencies 
   and Congress to mitigate financial stability risk, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``AI Bubble Transparency Act''.

SEC. 2. FINANCIAL SYSTEM EXPOSURE TO ARTIFICIAL INTELLIGENCE SECTOR.

    Subtitle B of the Financial Stability Act of 2010 (12 U.S.C. 5341 
et seq.) is amended by adding at the end the following:

``SEC. 157. DATA COLLECTION ON FINANCIAL SYSTEM EXPOSURE TO ARTIFICIAL 
              INTELLIGENCE SECTOR.

    ``(a) Artificial Intelligence Defined.--In this section, the term 
`artificial intelligence' has the meaning given that term in section 
5002 of the National Artificial Intelligence Initiative Act of 2020 (15 
U.S.C. 9401).
    ``(b) Data Collection.--
            ``(1) Reporting on exposure.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment, the Director shall order all 
                financial companies to submit data, subject to the 
                limitation under paragraph (2), relating to their 
                exposure to debt and equity instruments connected to 
                companies that support artificial intelligence hardware 
                and physical infrastructure, including chip makers and 
                data centers, hyperscalers and neocloud providers, 
                model originators and developers, and data 
                infrastructure.
                    ``(B) Data contents.--The data required to be 
                submitted under subparagraph (A) shall include the 
                following:
                            ``(i) Reporting of credit exposure.--Data 
                        relating to credit exposure, including--
                                    ``(I) type of debt instrument;
                                    ``(II) size of the exposure;
                                    ``(III) issuing company or 
                                counterparty;
                                    ``(IV) interest rate;
                                    ``(V) term;
                                    ``(VI) collateral pledged; and
                                    ``(VII) additional borrower 
                                characteristics, such as--
                                            ``(aa) subsector 
                                        classification;
                                            ``(bb) annual revenue and 
                                        net income;
                                            ``(cc) total market 
                                        capitalization, if applicable; 
                                        and
                                            ``(dd) total debt and other 
                                        outstanding liabilities, 
                                        including those held off-
                                        balance sheet.
                            ``(ii) Reporting of equity exposure.--Data 
                        relating to equity exposure, including--
                                    ``(I) type of equity instrument;
                                    ``(II) size of the exposure; and
                                    ``(III) additional company 
                                characteristics, such as--
                                            ``(aa) subsector 
                                        classification;
                                            ``(bb) annual revenue and 
                                        net income;
                                            ``(cc) total market 
                                        capitalization, if applicable; 
                                        and
                                            ``(dd) total debt and other 
                                        outstanding liabilities, 
                                        including those held off-
                                        balance sheet.
                            ``(iii) Other.--Any other information the 
                        Director determines necessary for evaluating 
                        the exposure of the financial companies to debt 
                        and equity instruments connected to the 
                        artificial intelligence sector.
            ``(2) Limitation.--The Director may exempt small financial 
        companies, including banks with less than $10,000,000,000 in 
        assets, and financial companies with less than $500,000,000 of 
        financial exposure to the instruments described in paragraph 
        (1) from the reporting requirements under this section.
    ``(c) Enforcement Authority.--The Director shall use the authority 
under section 153(f) to compel data from any financial company that 
fails to comply with the data collection required under this section.
    ``(d) Report and Recommendations.--
            ``(1) Report required.--Not later than 1 year after the 
        date of enactment of this Act, the Chair of the Financial 
        Stability Oversight Council shall issue and make publicly 
        available a report on the findings of the data collection under 
        this section that evaluates--
                    ``(A) the size, scope, complexity, and 
                interconnectedness of the financial system's exposure 
                to debt and equity instruments connected to artificial 
                intelligence development;
                    ``(B) the transmission channels through which a 
                severe decline in value of debt and equity instruments 
                connected to artificial intelligence could threaten the 
                stability of the financial system of the United States; 
                and
                    ``(C) the extent to which financial companies are 
                indirectly exposed to debt and equity instruments 
                connected to artificial intelligence development 
                through financing arrangements with other financial 
                companies.
            ``(2) Recommendations.--The Council shall use the authority 
        under section 120 to issue policy recommendations to member 
        agencies and to Congress to mitigate financial stability risks 
        relating to the financing of artificial intelligence 
        development.
    ``(e) Submission to Congress.--Not later than 1 year after the date 
of enactment of this Act, the Director shall submit to the Chairs and 
Ranking Members of the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, in unredacted form, the data collected under this 
section.''.
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