Press Release: 5/18/2026

The House Financial Services Committee advanced a slate of technology-driven legislation last week, headlined by a bipartisan regulatory sandbox for AI and a near-unanimous push for advanced fraud-detection tools.

 



05/15/2026 1:00 P.M.



The House Financial Services Committee advanced several bills related to data privacy and artificial intelligence on May 13.



A bipartisan bill, the Unleashing AI Innovation in Financial Services Act, introduced by committee chairman U.S. Rep. French Hill, R-Ark., and U.S. Rep. Richie Torres, D-N.Y., was a central focus of the markup.



The primary goal of the bill, H.R. 4801, is to provide a regulatory sandbox for financial institutions to test AI technologies without immediate fear of enforcement actions.



“Before us today is an opportunity to advance legislation that reflects the committee’s core mission of promoting financial innovation, strengthening consumer protections, and ensuring our regulatory framework keeps pace with a rapidly evolving financial landscape,” Hill said in his opening remarks for the hearing.



Key provisions of the bill include:




  • Regulatory Sandbox: Financial institutions can apply to federal regulators (like the SEC or Federal Reserve) for a test period to deploy AI tools.

  • Safe Harbor: If approved, the institution receives a waiver from certain regulations during the testing phase, provided they comply with agreed-upon terms.

  • Reporting: Companies must report findings to regulators to help shape future permanent AI policy.



ACA International has consistently advocated for a tailored approach to AI regulations and the technology’s uses in the accounts receivable management industry. ACA members can interact with lawmakers on issues such as this at the upcoming Washington Insights Fly-In, May 19-21.



H.R. 4801 legislation is rooted in the recommendations from the congressional Bipartisan Task Force on Artificial Intelligence and the House Financial Services Committee’s bipartisan working group dedicated to AI.



It received strong bipartisan support from the committee, with members noting that it allows the U.S. to remain competitive in the global AI race while ensuring consumer protections aren’t entirely bypassed.



It was approved 33-19 for consideration by the full U.S. House of Representatives.



AI and legislationAdditional Innovation Measures



Other legislative measures sparked intense debate over the balance between innovation and consumer protection.



Discussion during the hearing was also dedicated to the Price Stability Act (PDF) (H.R. 5396), which aims to “amend the Federal Reserve Act to remove the mandate on the Board of Governors of the Federal Reserve System and the Federal Open Market Committee to focus on maximum employment.”



Republican members of the committee said the focus on a single mandate prevents the Fed from making policy errors that lead to rampant inflation, while Democrats said removing the employment mandate would disproportionately harm workers and underserved communities, ignoring the “real economic pain” of unemployment.



AI and legislation



The Bank Fraud Technology Advancement Act of 2026 (H.R. 8671) requires the federal banking agencies to conduct a study on the use of advanced technologies in fraud detection and prevention, with particular attention to community financial institutions, and for other purposes.



This bill passed 52-1 for consideration in the House.



Hill also addressed the AI Plan Act, led by U.S. Reps. Zach Nunn, R-Iowa, and James Himes, D-Conn., in his remarks, stating that it “directs the executive branch to develop a comprehensive plan to safeguard our financial system and sensitive data against the misuse of AI technologies.”



It advanced to the House with a 52-0 vote.



“The truth is, we cannot fight a 21st-century threat with 20th-century tools,” Hill added in his remarks. “That is why we must use proven, commonsense tools that allow regulators and innovators to learn together and adapt to rapidly evolving technology.”



The committee also advanced H.R. 2978, the Guarding Unprotected Aging Retirees from Deception Act, which enables state, local, and tribal law enforcement to use federal grant funds to investigate elder financial fraud and general financial crimes. Additionally, it clarifies that federal agencies can assist these local partners by providing blockchain tracing tools and technical expertise.



Related Senate Action on Stablecoins



Additional technology-related legislation advanced in Congress recently.



The Senate Committee on Banking, Housing and Urban Affairs approved the Digital Asset Market Clarity Act (the CLARITY Act) for consideration by the full Senate.



The legislation aims to establish a permanent regulatory framework for stablecoins. Still, the banking industry argues that the current draft contains a “yield loophole” that could fundamentally alter the American financial system, ACA International recently reported.



Hill also commented on the CLARITY Act, which the House passed last year.



“This landmark bill brings long-overdue certainty to the digital asset ecosystem and solidifies the United States as the global leader in the future of blockchain use in financial services,” Hill said. “A clear framework will protect consumers, encourage responsible innovation, and keep investment and technological development here in the United States.”