(1) AI TEST PROJECTAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1).—The term ''AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1)'' means a financial product or serviceFinancial product or serviceThe term "financial product or service"— (A) has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); (B) includes— (i) activities that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); (ii) any financial product or service provided by a person regulated by the Commission, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (iii) includes the offer or sale of any security subject to the Federal securities laws; and (C) does not include the business of insurance.Sec. 2(6) that— (A) falls under the jurisdiction of a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7); (B) makes substantial use of artificial intelligenceArtificial intelligenceThe terms "artificial intelligence" and "AI" have the meaning given the term "artificial intelligence" in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(3); and (C) is, or may be, subject to a Federal regulation or Federal statute.

(2) APPROPRIATE FINANCIAL REGULATORY AGENCYAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2).—The term ''appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2)'' means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.

(3) ARTIFICIAL INTELLIGENCEArtificial intelligenceThe terms "artificial intelligence" and "AI" have the meaning given the term "artificial intelligence" in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(3); AI.—The terms ''artificial intelligenceArtificial intelligenceThe terms "artificial intelligence" and "AI" have the meaning given the term "artificial intelligence" in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(3)'' and ''AI'' have the meaning given the term ''artificial intelligenceArtificial intelligenceThe terms "artificial intelligence" and "AI" have the meaning given the term "artificial intelligence" in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(3)'' in section 5002 of the National Artificial IntelligenceArtificial intelligenceThe terms "artificial intelligence" and "AI" have the meaning given the term "artificial intelligence" in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Sec. 2(3) Initiative Act of 2020 (15 U.S.C. 9401).

(4) COMMISSION.—The term ''Commission'' means the Securities and Exchange Commission.

(5) FEDERAL SECURITIES LAWS.—The term ''Federal securities laws'' means— (A) the Securities Act of 1933 (15 U.S.C. 77a et seq.); (B) the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (C) the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.); (D) the Trust Indenture Act of 1939 (15 U.S.C. 77aaa et seq.); (E) the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (F) the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (G) the Jumpstart Our Business Startup Act (Public Law 112–106; 126 Stat. 306); and (H) the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203; 124 Stat. 1376).

(6) FINANCIAL PRODUCT OR SERVICEFinancial product or serviceThe term "financial product or service"— (A) has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); (B) includes— (i) activities that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); (ii) any financial product or service provided by a person regulated by the Commission, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (iii) includes the offer or sale of any security subject to the Federal securities laws; and (C) does not include the business of insurance.Sec. 2(6).—The term ''financial product or serviceFinancial product or serviceThe term "financial product or service"— (A) has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); (B) includes— (i) activities that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); (ii) any financial product or service provided by a person regulated by the Commission, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (iii) includes the offer or sale of any security subject to the Federal securities laws; and (C) does not include the business of insurance.Sec. 2(6)''— (A) has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); (B) includes— (i) activities that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); (ii) any financial product or serviceFinancial product or serviceThe term "financial product or service"— (A) has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); (B) includes— (i) activities that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); (ii) any financial product or service provided by a person regulated by the Commission, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (iii) includes the offer or sale of any security subject to the Federal securities laws; and (C) does not include the business of insurance.Sec. 2(6) provided by a person regulated by the Commission, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (iii) includes the offer or sale of any security subject to the Federal securities laws; and (C) does not include the business of insurance.

(7) FINANCIAL REGULATORY AGENCYFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7).—The term ''financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7)'' means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.

(8) REGULATED ENTITYRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8).—The term ''regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8)'' means an entity regulated by any financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7).

(a)(1) 1 ESTABLISHMENT.—Each financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) shall establish, or identify an office, division, or department of the agency that shall serve as, an AI Innovation Lab to enable regulated entities to experiment with AI test projectsAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) without unnecessary or unduly burdensome regulation or expectation of enforcement actions, pursuant to the approval of an application under paragraph (2).

(a)(2)(A)(i)–(ii) 2 SUBMISSION.— (i) IN GENERAL.—A regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) may submit to the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) an application, on a form determined by the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2), to engage in an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) through the AI Innovation Lab established or identified under paragraph (1). (ii) CONTENTS.—An application submitted under clause (i) shall include— (I) a description of the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) proposed to be carried out by the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8); (II) an alternative compliance strategy that— (aa) identifies a regulation issued by the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) that the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) requests to be waived or modified; and (bb) proposes an alternative method for the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) to comply with the regulation, including an explanation as to why the alternative method is essential to the operation of the entity and how the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) would effectively manage risks associated with the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1); (III) an explanation of how under the strategy described in subclause (II), the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1)— (aa) would serve the public interest, improve consumer or investor access to a financial product or serviceFinancial product or serviceThe term "financial product or service"— (A) has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); (B) includes— (i) activities that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); (ii) any financial product or service provided by a person regulated by the Commission, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (iii) includes the offer or sale of any security subject to the Federal securities laws; and (C) does not include the business of insurance.Sec. 2(6), or promote consumer or investor protection; (bb) would enhance efficiency or operations, foster innovation or competitiveness, improve risk management and security, or enhance regulatory compliance; (cc) would not present a systemic risk to the financial system of the United States; (dd) is consistent with the purposes of the anti-money laundering and countering the financing of terrorism obligations under subchapter II of chapter 53 of title 31, United States Code; and (ee) would not present a national security risk to the United States; (IV) a proposed date on which the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) would terminate and an explanation why such termination date would be appropriate; (V) proposed limitations on the size, scope, and growth of the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1); (VI) a detailed business plan; and (VII) an estimate of the economic impact of the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) if approved.

(a)(2)(A)(iii) JOINT APPLICATIONS.—Two or more regulated entities may submit a joint application to the same financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) under clause (i).

(a)(2)(A)(iv) 2 REGULATIONS OF OTHER AGENCIES.— (I) IN GENERAL.—A regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) may submit an application under this subparagraph that includes an alternative compliance strategy for a regulation issued or enforced by a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) that is not the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) for the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8). (II) REQUIREMENTS.—An application described in subclause (I) shall be subject to the same requirements as an application described in clause (ii), except that— (aa) the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) shall submit the application to the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) and the financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) that issued or enforces the regulation that is the subject of the alternative compliance strategy; and (bb) the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) may not take effect unless the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) and any other financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) that issued or enforces the regulation that is the subject of the alternative compliance strategy jointly approve the application using the process described in subparagraph (B).

(a)(2)(A)(v) 3 NOTICE.—A regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) that is regulated or supervised by more than 1 financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) shall provide notice of any application submitted to the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) under this section to each financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) by which it is regulated or supervised not later than 5 business days after the entity submits the application to the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2).

(a)(2)(B)(i)–(ii) AGENCY REVIEW.— (i) IN GENERAL.—Except as provided in clause (iv), not later than 120 days after the date on which an application is submitted to the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) under subparagraph (A), the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) shall— (I) review the application; and (II) submit to the applicant in writing a determination of the agency. (ii) APPROVAL.— (I) IN GENERAL.—If the applicant shows that it is more likely than not that the application meets the requirements for establishing an alternative compliance strategy and satisfies the standards described in subclauses (II) and (III) of subparagraph (A)(ii), the agency shall approve the application and notify the applicant in writing of— (aa) the regulation that is the subject of the alternative compliance strategy; (bb) the terms of the alternative compliance strategy for the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1); (cc) the date on which the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) will terminate; (dd) any limitations on the size, scope, or growth of the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1); and (ee) any additional limitations or conditions on the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1), as determined by the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2). (II) EFFECT OF APPROVAL.—With respect to an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1), except as provided in subclause (III), beginning on the date on which an application submitted under subparagraph (A) is approved and ending on the date described in subclause (I)(cc)— (aa) the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) may enforce a regulation described in subclause (I)(aa) only in the manner set out in the alternative compliance strategy described in subclause (I)(bb); and (bb) a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) that is not the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) may not enforce a regulation described in subclause (I)(aa). (III) ENFORCEMENT BY ANOTHER FINANCIAL REGULATORY AGENCYFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7).—With respect to an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1), a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) other than the appropriate financial regulatory agencyAppropriate financial regulatory agencyThe term "appropriate financial regulatory agency" means— (A) the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), with respect to an institution described in subsection (q) of that section; (B) the Securities and Exchange Commission, with respect to an institution not described in subparagraph (A) that is— (i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ii) any investment company that is registered with the Commission under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (v) any nationally recognized statistical rating organization registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vi) any transfer agent registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (vii) any exchange registered as a national securities exchange with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (viii) any national securities association registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (ix) any securities information processor registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (x) the Municipal Securities Rulemaking Board established under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (xi) the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et seq.); (xii) the Securities Investor Protection Corporation established under the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (xiii) any security-based swap execution facility, security-based swap data repository, security-based swap dealer, or major security-based swap participant registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), with respect to the security-based swap activities of the person that require such person to be registered under such Act; (C) the Bureau of Consumer Financial Protection, with respect to a covered person, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481), that does not have an appropriate financial regulatory agency under subparagraph (A), (B), (D), or (E) of this paragraph; (D) the National Credit Union Administration, with respect to an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (E) the Federal Housing Finance Agency, with respect to— (i) a Federal Home Loan Bank; (ii) the Federal Home Loan Bank System; (iii) the Federal National Mortgage Association; and (iv) the Federal Home Loan Mortgage Corporation.Sec. 2(2) that approves an application under subparagraph (A)(iv) may enforce a regulation described in subclause (I)(aa) if the alternative compliance strategy described in subclause (I)(bb) provides for enforcement by such financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7). (IV) RULE OF CONSTRUCTION.—Nothing in this clause may be construed to limit the authority of a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) to take an enforcement action against a regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) with respect to fraud or for engaging in an unsafe or unsound practice relating to an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1).

(a)(2)(B)(iii) DENIAL.— (I) IN GENERAL.—If an agency denies an application submitted under subparagraph (A), the agency— (aa) shall submit to the applicant a written notice explaining the reason for denial; and (bb) may not take an enforcement action related to the proposed AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) against the applicant earlier than the date that is 30 days after the date on which the agency submits the written notice described in item (aa). (II) RESUBMITTALS.—Each time an application submitted under subparagraph (A) is denied, the regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8)— (aa) may submit an amended application after receiving feedback from the agency making such denial; and (bb) may not resubmit more than 2 applications that are substantially similar to the denied application. (III) INJUNCTIVE RELIEF.—A financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7), by and through its own attorneys, may file a civil action in an appropriate United States district court to enjoin an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) if the agency determines that the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1)— (aa) presents an immediate danger to consumers or investors; or (bb) presents a risk— (AA) to financial markets; (BB) in the case of an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) engaged in by an insured depository institution or an insured credit union, of loss to a Federal deposit or share insurance fund; (CC) of a violation of anti-money laundering and countering the financing of terrorism obligations under subchapter II of chapter 53 of title 31, United States Code; or (DD) to the national security of the United States.

(a)(2)(B)(iv) EXTENSION.—If the financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) needs additional time, the agency may extend the approval deadline by 120 days. After the expiration of the 120-day extension period, if the agency has not made a determination on the application, the application will automatically be deemed approved and effective.

(a)(2)(C) 4 DATA SECURITY.—All data supplied by sponsors of AI test projectsAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) to a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) submitted under this section shall be stored and maintained in a secure manner by the financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7), consistent with applicable data security standards.

(a)(2)(D) 5 REGULATIONS.—Not later than 180 days after the date of enactment of this Act, each financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) shall promulgate regulations that— (i) shall be published in the Federal Register and provide a 60-day period for public notice and comment; and (ii) include— (I) procedures for modifying the AI test projectsAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) that are approved by the agency; (II) consequences for failure to comply with the terms of an alternative compliance strategy; (III) a requirement that an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) will terminate not earlier than 1 year after the AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1) is approved; (IV) procedures to extend the termination date described in subclause (III); (V) procedures for confidentiality; and (VI) procedures for coordinating decisions relating to applications submitted jointly by multiple regulated entities or applications submitted to more than one financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7).

(b) 6 REPORT.—Not later than 2 years after the date of enactment of this Act, and each year for 7 years thereafter, each financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report on the outcomes of AI test projectsAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1). A report under this subsection may not include the names of participating entities or any proprietary or confidential business information. A report under this subsection shall include aggregated findings, trends, and lessons learned from the AI test projectsAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1).

(c) RULE OF CONSTRUCTION.—Nothing in this section may be construed to limit the authority of a financial regulatory agencyFinancial regulatory agencyThe term "financial regulatory agency" means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Securities and Exchange Commission; (E) the Bureau of Consumer Financial Protection; (F) the National Credit Union Administration; and (G) the Federal Housing Finance Agency.Sec. 2(7) to take an enforcement action against a regulated entityRegulated entityThe term "regulated entity" means an entity regulated by any financial regulatory agency.Sec. 2(8) with respect to fraud relating to an AI test projectAI test projectThe term "AI test project" means a financial product or service that— (A) falls under the jurisdiction of a financial regulatory agency; (B) makes substantial use of artificial intelligence; and (C) is, or may be, subject to a Federal regulation or Federal statute.Sec. 2(1).