Trump Administration Considering Establishing Independent Regulatory Body to Review AI Model Safety, Reporting to SEC
Bloomberg reports that this plan aims to strengthen AI governance through an independent review mechanism, covering model safety assessments and compliance requirements.
Regulatory changes are driving increased compliance spending by AI companies, with funds flowing to safety audits and compliance tech service providers. The traditional financial regulatory framework, led by the SEC, is extending into the tech sector, benefiting leading AI companies with clearer policies while smaller model developers face higher barriers.
Source: Public Information
ABAB AI Insight
The Trump administration previously pushed for adjustments in energy and tech regulation during its term, similar to accelerating AI infrastructure development through executive orders. It signaled support for U.S. AI leadership in early 2025 while focusing on national security risks.
On the capital front, the regulatory framework will guide venture capital towards AI projects that meet safety standards, with resources channeled through the SEC towards compliant infrastructure and defense AI, motivated by the need to balance innovation and control to maintain U.S. technological advantage.
Similar to the impact of the EU AI Act on companies like OpenAI, the current U.S. AI industry is transitioning from wild growth to a regulated maturity stage, with large labs benefiting from the authority to set standards.
Structural Judgment: Essentially a regulatory change, incorporating AI safety into the financial regulatory system through an independent body, concentrating capital on compliant players, with the mechanism aimed at reducing systemic risk while setting global barriers for U.S. AI exports and investments.
ABAB News · Law of Cognition
- The stricter the regulation, the deeper the moat for leading companies; compliance is the new monopoly.
- Safety is not a cost, but a ticket to enter the next track.
- Unregulated innovation leads to bubbles, while regulated innovation brings pricing power.