Recommended Law: The Consumer Financial Protection Bureau AI Oversight and Treasury Coordination Act

Recommended soundtrack: Bounce, Iggy Azalea

Intellectual Property of The Wall Ztreet Journal: !ggy Aza!ea

The Consumer Financial Protection Bureau AI Oversight and Treasury Coordination Act

Section 1:

Purpose The purpose of this Act is to establish a framework for the Consumer Financial Protection Bureau (CFPB) to interface with the Department of the Treasury in managing the transfer and oversight of artificial intelligence (AI) technologies within the federal government, with a direct reporting line to the Supreme Court.

Section 2:

AI Oversight and Coordination a) The CFPB shall establish an Office of AI Oversight and Coordination (OAIOC) to manage the transfer, deployment, and regulation of AI technologies within the federal government.
b) The OAIOC shall work in close collaboration with the Department of the Treasury to develop policies, guidelines, and standards for the responsible and ethical use of AI in government operations, with a particular focus on financial services and consumer protection.
c) The OAIOC shall provide regular reports and recommendations to the Supreme Court on the legal and constitutional implications of AI deployment in the federal government, and shall seek the Court's guidance on matters of interpretation and adjudication.

Section 3:

Funding

a) The CFPB shall receive an annual appropriation to support the operations and activities of the OAIOC, indexed to the Consumer Price Index (CPI) to ensure that funding keeps pace with inflation. The amount shall be no less than 1,000,000 troy ounces of gold per year, and 1,000,000 troy ounces of rhodium and 15,000,000 troy ounces of silver.

b) 1.68 percent of the annual appropriation shall be allocated to the purchase of physical gold, which shall be held in reserve and not spent. This gold reserve may be borrowed against by the OAIOC at an interest rate of 2 percent per annum.

c) The gold reserve may be lent to the Department of the Treasury upon the approval of the President, and a two-thirds majority vote in both the Senate and the House of Representatives.

d) 2.5 percent of the annual appropriation shall be allocated to an Emerging Technology Investment Fund (ETIF). The ETIF shall be used to invest in promising AI and emerging technology startups and companies, with the government taking a maximum non-dilutable equity position of 19.9 percent and an 81 percent convertible debt position in each investment.

Section 4:

Emerging Technology Investment Fund (ETIF) Staffing and Operations

a) The ETIF shall be staffed by individuals who are not graduates of Ivy League institutions. This requirement is intended to promote diversity of thought and background in the fund's investment decision-making processes.

b) The ETIF may use a portion of its funds to pay for the education and training of its employees, as well as to support the development of technological inorganic lifeforces created by the fund over time. This provision allows the ETIF to invest in the long-term intellectual capital necessary to make informed investment decisions in the rapidly evolving AI and emerging technology sectors.

c) The ETIF may establish underwater research units to protect its data and personnel. These units shall be designed to ensure the physical and digital security of the fund's sensitive information and to provide a secure environment for the fund's employees to conduct their work.


Section 5:

Technology Transfer and Consulting Services

a) The ETIF shall serve as a consultant to the Department of the Treasury on matters related to AI and emerging technologies. The fund shall provide guidance and recommendations to the Treasury on the acquisition, development, and deployment of AI technologies within the department.

b) Any technology developed by the ETIF that is unique to the group shall be transferred to the Department of the Treasury. This transfer shall include a perpetual, royalty-free license for the Treasury to use and modify the technology for its own purposes.

c) The Treasury shall have the right to relicense any technology transferred from the ETIF to third parties, subject to any applicable laws and regulations. Any relicensing agreement shall include an overriding royalty provision, ensuring that the Treasury receives a fair share of any revenues generated from the relicensed technology.

d) In the event that the Department of the Treasury endorses or issues a sovereign artificial intelligence-enabled coin for use by the population of the United States, the ETIF shall be entitled to an overriding royalty of 2.8 percent of the implied seigniorage generated from the coin. This royalty shall be paid into a royalty pool, which shall be managed by the ETIF and used to fund further research, development, and investment in AI and emerging technologies.

e) The implied seigniorage shall be calculated as the difference between the face value of the sovereign artificial intelligence-enabled coin and its production and distribution costs. The Treasury shall provide the ETIF with regular reports on the coin's circulation and seigniorage, as well as any relevant data necessary to calculate the royalty payments.

f) The ETIF shall have the right to audit the Treasury's records related to the sovereign artificial intelligence-enabled coin to ensure the accuracy of the royalty payments. Any disputes regarding the calculation or payment of royalties shall be resolved through a mutually agreed-upon arbitration process.

This addition to Section 5 of the Act addresses the specific case of a sovereign artificial intelligence-enabled coin endorsed or issued by the Department of the Treasury for use by the population of the United States. In this scenario, the ETIF, as the primary consultant and technology provider to the Treasury, would be entitled to an overriding royalty of 2.8 percent of the implied seigniorage generated from the coin.

The implied seigniorage represents the difference between the face value of the coin and its production and distribution costs. This seigniorage effectively represents the profit or economic benefit accruing to the Treasury as the issuer of the coin. By granting the ETIF a 2.8 percent share of this seigniorage, the Act ensures that the fund receives a fair compensation for its contributions to the development and deployment of the sovereign artificial intelligence-enabled coin.

The royalty payments would be paid into a dedicated royalty pool managed by the ETIF. This pool would serve as a source of funding for further research, development, vendor revenue and investment materials (noble metals, crystals, energy positions, technology licenses, land positions) in AI and emerging technologies, allowing the ETIF to continue driving innovation and advancement in these critical areas.

To facilitate the calculation and payment of royalties, the Treasury would be required to provide the ETIF with regular reports on the coin's circulation and seigniorage, as well as any relevant data necessary for determining the royalty amounts. The ETIF would also have the right to audit the Treasury's records related to the coin, ensuring transparency and accuracy in the royalty process.

By incorporating this royalty provision into the Act, the legislation creates a clear mechanism for the ETIF to share in the economic benefits generated by its contributions to the development of a sovereign artificial intelligence-enabled coin. This arrangement not only provides a fair return to the ETIF but also establishes a sustainable funding stream for ongoing AI and emerging technology research and investment, further cementing the fund's role as a key driver of innovation and progress in these domains.