ACLU Urges Senate to Block AI Experimentation Provision in Crypto Bill

Section 509 of the Clarity Act would establish a scheme that could allow AI companies to seek broad waivers from regulations — including those related to privacy, security, consumer protection, and civil rights

September 15, 2026 9:15 am

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WASHINGTON — The Senate will take a procedural vote on the Clarity Act today, which includes a provision that would give companies a free pass to experiment on “AI test projects” without transparency or oversight. The American Civil Liberties Union argues that this is unneeded both because of how fast artificial intelligence is already growing, and also because of the harm it could cause to individuals’ rights.

“Companies have plenty of freedom to do basic research on AI. But they shouldn’t have the freedom to use the American people as guinea pigs by subjecting them to harmful experiments that violate existing laws meant to protect people,” said Jina John, senior policy counsel on AI at the ACLU. “At the very moment that AI leaders are warning of catastrophic risks and urging Congress to regulate AI, Congress must not pass any law that would endanger people’s rights and liberties for the sake of AI experimentation.”

Section 509 of the bill would establish a scheme for companies to seek waivers from any regulation from a financial regulator, including those related to privacy, security, consumer protection, and civil rights. That means companies could conduct AI experiments that risk exposing consumers’ financial data or be used to develop products that make decisions about lending, housing, and other important areas without providing notice about adverse actions or considering the potential for discrimination, all without oversight. The ACLU and a coalition of other rights groups recently sent a letter to Congress outlining the dangers of this provision for privacy rights and the right to be free from discrimination in key economic transactions.

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