Bennet, Welch Release Proposal to Establish New Federal Agency to Prevent Catastrophic AI Risk, Regulate Big Tech

Sep 23, 2026 | Press Releases

Federal Digital Commission Would Have Pre-Clearance Review of Frontier AI Models, Ability to Pause Release Without Necessary Safeguards, and Assess Civil Penalties of Up to 15 Percent of a Firm's Prior-Year Global Revenue

Washington, D.C. - Colorado U.S. Senator Michael Bennet and U.S. Senator Peter Welch (D-Vt.) today announced a new proposal building off of their landmark legislation to create a new independent federal agency to regulate frontier artificial intelligence (AI) models and social media.

The AI Regulator Act would require pre-certification for frontier AI models, delay the public release of any AI model that could pose catastrophic risks without necessary safeguards, and issue formal rulemakings able to keep pace with the speed of innovation. It could also conduct investigations, engage in research, and impose penalties of up to 15 percent of a firm's prior-year global revenue. These new authorities add to the proposed Federal Digital Commission longstanding remit to regulate the largest digital platforms, and ensure that a dedicated agency is empowered to protect Americans from catastrophic AI risk, safeguard our kids online, reduce harmful market concentration, and prevent national and economic security risks.

"The challenge posed by a new technology and a new industry able to profoundly transform our economy and society is one we have faced before," said Bennet. "In the past, we created new expert agencies to regulate aviation, pharmaceuticals, and telecommunications. But today, no such agency exists for AI or social media platforms. Oversight is fragmented between states and federal agencies, while Congress tries to address each new problem one bill at a time. The Federal Digital Commission would keep pace with innovation, act before serious harm occurs, and have the authority to hold companies accountable when they break the rules."

"Americans in Vermont and across the country are freaked out by the warnings of AI researchers, and I'm right there with them. It's clear we can't leave it to AI companies to self-regulate-just like we don't let drug companies, or Wall Street, or Big Oil self-regulate. Americans need reassurance that an independent expert agency will advocate on behalf of the public good and public safety," said Welch. "Our common sense bill would provide the comprehensive oversight of Big Tech and AI that is sorely needed."

The Proposed AI Regulator Act would:

• Give regulators the power to pause certain AI releases. Allow a pause of up to six months on the public distribution of AI models with the potential for catastrophic risk, or until reasonable safeguards are in place.
• Put major tech companies under closer oversight. Allow the Commission to designate systemically important digital platforms or developers for additional reporting and regulation.
• Back its rules with substantial penalties. Establish a five-member commission that could hold hearings, investigate, conduct research, issue rules, and impose civil penalties of up to 15 percent of a firm's prior-year global revenue in a year.
• Set safeguards for frontier AI. Require developers to meet risk-mitigation, catastrophic risk incident-reporting, and transparency requirements.
• Protect kids and consumers online. Establish age-verification and age-appropriate design standards, consumer protections, and transparency requirements for platforms' terms of service and content-moderation policies.
• Address national and economic security risks. Include provisions concerning Americans' data held by foreign AI companies, U.S. subsidiaries for certain foreign firms, and transparency about where online content originates.

Bennet and Welch first introduced the Digital Platform Commission Act in the Senate and House in 2022. Bennet and Welch reintroduced the bill in 2023. The proposal sought to bring oversight of digital platforms into a dedicated agency. Today, responsibility for competition, consumer protection, privacy, online safety, and national security remains spread across the federal government.

The updated Section-by-Section is HERE. The One-Pager is HERE.

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