BESSENT: NO LIABILITY SHIELD FOR AI LABS

Speaking before the House Financial Services Committee, Bessent rejected proposals to exempt AI labs from liability, arguing that accountability is essential for safety. He stated that holding creators responsible for their systems represents "the best way to guarantee safety." Bessent also advocated for increased development of open-source AI models domestically, positioning it as a competitive priority against international alternatives. His comments suggest the Treasury Department views regulatory frameworks around AI liability as central to both safety and economic policy. The position contrasts with some industry arguments for liability protections during AI's development phase. Bessent's remarks indicate the administration may support stricter oversight of commercial AI systems while encouraging more transparent, community-driven model development.