Rep. Bill Foster Proposes Legislation for Federal Reserve to Develop Real-Time Financial Regulatory Technology
Representative Bill Foster, a Democrat from Illinois and ranking member of the House Financial Institutions Subcommittee, has introduced a discussion draft of the Real-Time Regulatory Study Act. This proposed legislation aims to modernize financial regulatory reporting and enhance oversight of the financial system. The bill would mandate the Federal Reserve Board of Governors to investigate the feasibility of real-time bank regulation by developing and testing open-source software. This software would be designed for use by both regulators and financial institutions. The initiative is driven by concerns over new cybersecurity threats and financial risks emerging from advancements in artificial intelligence and the proliferation of round-the-clock payment systems. Foster emphasizes the need for real-time information and automated tools to prevent adverse financial outcomes and protect against AI-driven cyber threats. The draft legislation outlines several software modules for the Fed to demonstrate, includi...
