Close Menu
fintechbits
  • News
  • AI
  • Acquisitions
  • Trends
  • Insights
  • Rumors
  • Startups
  • finjobsly

Subscribe to Updates

Get the latest news from Fintechbits.

Trending Now

AI in Finance Awards 2025: Round Two

December 24, 2025

An overview of AI’s future in the finance and banking sectors

December 24, 2025

AI Fintech Company Prosperr.io Raises $4 Million to Expand Its Tax System

December 24, 2025

AI in Finance Round II: Worldwide Champions

December 23, 2025
Facebook X (Twitter) Instagram
Trending
  • AI in Finance Awards 2025: Round Two
  • An overview of AI’s future in the finance and banking sectors
  • AI Fintech Company Prosperr.io Raises $4 Million to Expand Its Tax System
  • AI in Finance Round II: Worldwide Champions
  • Rwandan fintech startup Kayko secures $1.2 million in initial funding
  • AI in Finance Round II: Successful Companies
  • Rwandan fintech startup Kayko secures $1.2 million in seed funding, founded in 2021 by brothers Crépin and Kevin Kayisire, offering clients a PoS system for sales processing.
  • Fintech startup Prosperr.io secures $4 million in funding for AI-driven tax management solutions.
Facebook X (Twitter) Instagram Pinterest Vimeo
fintechbits
  • News

    PayPal joins other fintech companies benefiting from Trump-era deregulation.

    December 16, 2025

    Zilch, the fintech unicorn, secures payment license from city regulator.

    December 10, 2025

    MobileMoney Fintech Reorganizes; Shareholders Endorse Merger and Waiver at Extraordinary General Meeting

    December 1, 2025

    Axis CRE Fund and Tishman Speyer launch Chennai FinTech City

    November 28, 2025

    Commemorating outside the office: Fintech firm treats employees to a getaway in Thailand

    November 11, 2025
  • AI

    AI in Finance Awards 2025: Round Two

    December 24, 2025

    An overview of AI’s future in the finance and banking sectors

    December 24, 2025

    AI in Finance Round II: Worldwide Champions

    December 23, 2025

    AI in Finance Round II: Successful Companies

    December 23, 2025

    A Worldwide Exploration of Finance: Regional Variations in AI Adoption

    December 23, 2025
  • Acquisitions

    MergersandAcquisitions.net publishes a comprehensive report on trends and analyses in financial services and fintech mergers and acquisitions.

    December 23, 2025

    Teybridge Capital Europe finalizes strategic purchase of London-based fintech company Atom CTO

    November 18, 2025

    Highlights from Santa Cruz County business: local fintech firm’s recent acquisition; startup showcases a surf helmet on Shark Tank

    November 12, 2025

    Ripple Becomes a Comprehensive Fintech Hub Following Hidden Road Acquisition, Reports TradingView News

    November 11, 2025

    Amazon concludes its acquisition of the Indian lender Axio, expanding its fintech efforts.

    September 11, 2025
  • Trends

    Saudi Arabian fintech sector projected to grow to $4.8 billion by 2034

    December 22, 2025

    Swiss Fintech Market 2025 – Key Regions and Recent Updates

    December 15, 2025

    Key Payment Trends in India

    December 15, 2025

    Emerging Trends in Fintech: Insights from SVB

    December 12, 2025

    Deloitte CEO calls on regulators to find a middle ground between fostering innovation and ensuring stability in the Fintech sector.

    December 12, 2025
  • Insights

    Recent fintech software failures spark industry-wide discussion on system resilience.

    December 22, 2025

    MobileMoney Ltd recognizes leading FinTech partners and industry figures at the 2025 FinTech Stakeholder Dinner and Awards.

    December 11, 2025

    MobileMoney Fintech undergoes restructuring as shareholders consent to merger and waiver during EGM

    December 2, 2025

    Youth Driving Innovative Fintech Concepts as Digital Adoption Reaches 87%, According to FM Sitharaman

    November 13, 2025

    Propel Launches $10 Million Fund to Support Food Stamp Recipients Affected by Government Shutdown

    October 30, 2025
  • Rumors

    Examination of Reality at $0.23 as GCV Excitement is Exposed as False

    December 15, 2025

    This week’s rumors focus on major breweries, robotics, and multi-million dollar auctions.

    November 22, 2025

    Speculations about Ubisoft acquisition following profit announcement delay

    November 18, 2025

    Bill Holdings’ Stock Price Jumps Despite Sell Rumors

    November 12, 2025

    Ripple clarifies there is no planned timeline for an IPO following the $500 million funding round.

    November 12, 2025
  • Startups

    AI Fintech Company Prosperr.io Raises $4 Million to Expand Its Tax System

    December 24, 2025

    Rwandan fintech startup Kayko secures $1.2 million in initial funding

    December 23, 2025

    Rwandan fintech startup Kayko secures $1.2 million in seed funding, founded in 2021 by brothers Crépin and Kevin Kayisire, offering clients a PoS system for sales processing.

    December 23, 2025

    Fintech startup Prosperr.io secures $4 million in funding for AI-driven tax management solutions.

    December 23, 2025

    What is the effect of the XRP trading exodus on Asian fintech startups?

    December 19, 2025
  • finjobsly
fintechbits
Home » Newsom vetoes first US bill to regulate large-scale artificial intelligence
AI in Finance

Newsom vetoes first US bill to regulate large-scale artificial intelligence

6 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
6d8ce670 7a8e 11ef Aff7 19405514e34a.jpeg
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

California Governor Gavin Newsom has vetoed a first-of-its-kind state bill that could potentially enact the nation’s most impactful artificial intelligence regulations.

The measure, known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, would require security measures from companies that spend more than $100 million to train AI models. It aims to prevent potential harm caused by AI, such as mass casualty events, and includes implementing a “kill switch” to completely shut down a malicious model.

California is home to some of the biggest players in AI, including: OpenAI, Anthropic, Google (GOOG), and meta (META). However, in his veto message Sunday afternoon, Newsom said SB 1047 was “well-intentioned” but that it “does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or use of sensitive information.” Instead, the bill applies strict standards to even the most basic functions – as long as a large system deploys it, I don’t think it’s the best approach to protecting the public from the real threats posed by technology.

Along with the veto, Newsom announced that he was working with leading experts – including “the godmother of AI” Fei-Fei Li – to put in place guardrails around the deployment of GenAI. He also ordered state agencies to expand their assessment of the risks associated with this technology.

Technology regulation has been a hot spot in Silicon Valley and beyond. OpenAI, Google and Meta have publicly opposed the bill. Anthropic, supported by Amazon (AMZN), cautiously supported it after suggesting changes to its original version.

Despite big tech’s reluctance, more than 100 current and former employees from Google, Meta, OpenAI and Anthropic called Newsom Signed the legislation earlier this month, expressing concerns that “the most powerful AI models could soon pose serious risks.”

More than 125 Hollywood actors, directors and entertainment leaders also urged Newsom to sign the bill, writing in a letter: “We fully believe in the dazzling potential of AI to be used for beneficial purposes. But we must also be realistic about the risks.”

SB 1047 was intended to walk the fine line between encouraging innovation in a rapidly changing industry while ensuring technology is used responsibly.

Newsom discussed his concerns about SB 1047 with Salesforce (RCMP) CEO Marc Benioff at the annual Dreamforce conference earlier this month. “The impact of signing bad bills over the course of a few years could have a profound impact,” Newsom said, referring to the state’s competitiveness.

“This is a space where we dominate and I want to maintain our dominance. I want to maintain our innovation. I want to maintain our ecosystem. I want to continue to lead. At the same time, you feel a deep sense of responsibility to address some of the more extreme concerns that many of us have, I think, even the biggest and most ardent proponents of this technology.

Supporters of the legislation include billionaire tech CEO Elon Muskwho owns the major AI modeling company xAI, alongside the so-called “Godfathers of AI”: Yoshua Bengio and Geoffrey Hinton.

California Artificial Intelligence Bill - SB1047. California Artificial Intelligence Bill - SB1047.

California Artificial Intelligence Bill – SB1047.

“The capabilities of AI models are increasing at a very rapid pace, as is the amount of money being invested to reach the level of artificial general intelligence and beyond,” Bengio told Yahoo Finance. “The pursuit of this declared objective by a handful of large companies, racing against each other without appropriate safeguards, poses major risks for our societies and our democracies.”

The bill’s lead author, California state Sen. Scott Wiener, said it was a reasonable framework for an underregulated technology. Wiener stressed the need for strong federal law that would establish nationwide guardrails for all developers.

However, Wiener is not hopeful that a national AI safety bill will be a reality in the near future, calling Congress “completely paralyzed when it comes to technology policy” during one meeting. press conference last month.

“Let me be clear – I agree with the author – we cannot afford to wait until a major disaster occurs before taking action to protect the public,” Newsom wrote, adding “I am not However, I disagree with the fact that to ensure public safety, we must settle for a solution that is not based on an empirical analysis of the trajectory of the systems and capabilities of the Al. “Any framework to effectively regulate AI must keep pace with the technology itself.”

The bill aimed to reshape the future of AI and many tech leaders spoke out.

“There are risks associated with AI, less to do with the models themselves than with what the models are allowed to do in the real world if left unsupervised,” says (AFRM) CEO, Max Levchin, told Yahoo Finance at the Goldman Sachs Communacopia and Tech Conference.

“So I’m not downplaying or dismissing the need for controls, governance models, oversight and thoughtful rule-making. I just wouldn’t want to ‘stop everything’ to cite another AI disaster.”

Although the bill passed the State Assembly 48-16 (7 Democrats voted no) and the Senate 30-9 (one Democrat voted no) in August, it was encountered some political opposition from California Democrats.

Criticisms of SB 1047 include eight California House members – Ro Khanna, Zoe Lofgren, Anna G. Eshoo, Scott Peters, Tony Cárdenas, Ami Bera, Nanette Diaz Barragan, Lou Correa – and longtime Newsom ally, former Speaker of the House Nancy Pelosi.

Over the past month, Newsom has signed 17 AI-related bills aimed at fight against false elections content, protecting actors and artists on their digital likeness, regulating sexually explicit content created by AI, among other measures.

The new set of laws will force developers and social media companies to prevent irresponsible use of their platform using misleading content.

While these legislations address the immediate dangers of AI, SB 1047 envisions some of the more extreme risks posed by advanced models.

While speaking at the United Nations General Assembly on Tuesday, President Joe Biden called on world leaders to set AI standards that protect human life.

“This is just the tip of the iceberg of what we need to do to manage this new technology,” President Biden said. “In the years to come, our leadership may be tested no more than how we treat AI.”

Yasmin Khorram is a senior reporter at Yahoo Finance. Follow Yasmin on Twitter/X @YasminKhorram and on LinkedIn. Send newsworthy tips to Yasmin: yasmin.khorram@yahooinc.com

Click here for the latest technology news that will impact the stock market

Read the latest financial and business news from Yahoo Finance

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

AI in Finance Awards 2025: Round Two

December 24, 2025

An overview of AI’s future in the finance and banking sectors

December 24, 2025

AI in Finance Round II: Worldwide Champions

December 23, 2025
Leave A Reply Cancel Reply

Latest news

AI in Finance Awards 2025: Round Two

December 24, 2025

An overview of AI’s future in the finance and banking sectors

December 24, 2025

AI Fintech Company Prosperr.io Raises $4 Million to Expand Its Tax System

December 24, 2025
News
  • AI in Finance (1,939)
  • Breaking News (184)
  • Corporate Acquisitions (75)
  • Industry Trends (226)
  • Jobs Market News (323)
  • Market Insights (226)
  • Market Rumors (292)
  • Regulatory Updates (186)
  • Startup News (1,255)
  • Technology Innovations (200)
  • X Feed (1)
About US
About US

FintechBits is a blog delivering the latest news and insights in fintech, finance, and technology. We cover breaking news, market trends, innovations, and expert opinions to keep you informed about the future of finance

Facebook X (Twitter) Instagram Pinterest Reddit TikTok
News
  • AI in Finance (1,939)
  • Breaking News (184)
  • Corporate Acquisitions (75)
  • Industry Trends (226)
  • Jobs Market News (323)
  • Market Insights (226)
  • Market Rumors (292)
  • Regulatory Updates (186)
  • Startup News (1,255)
  • Technology Innovations (200)
  • X Feed (1)
Happening Now

November 28, 2024

“ Intentionally collaborative ”: how the Rotman school of U of T leads Innovation Fintech

February 6, 2025

‘1957 Ventures’ to Drive FinTech Innovation in Saudi Arabia

September 10, 2024
  • About FintechBits
  • Advertise With us
  • Contact us
  • Disclaimer
  • Privacy Policy
  • Terms and services
  • BUY OUR EBOOK GUIDE
© 2025 Designed by Fintechbits

Type above and press Enter to search. Press Esc to cancel.