The AI Daily Brief · Friday, August 28, 2026
An executive order proposing a self-regulatory body for the AI industry, modeled after FINRA, has stalled. While Treasury Secretary Scott Bessen supported the idea, former White House AI czar David Sax has voiced strong opposition, calling it a 'horrible idea' and a 'Trojan horse for an open source model ban.'
“Reports say that the Trump administration recently proposed an executive order that would create a self-regulatory body for the AI industry.”
“He believes that once the body is set up, the frontier labs will push for standards that apply equally to all models, I.E., standards that open model developers will find impossible to comply with.”
“Many startups looking to enter the financial industry view Finra as largely concerned with using regulation to protect incumbents.”