AI should not get a FINRA: regulatory markets and IVOs shape California's FRONTIER Act

ghadfield · x · 2026-09-10

Responding to Dwarkesh, the author argues AI regulation should not copy FINRA's single-regulator model. Instead, building on the "regulatory markets" idea he and Jack Clark proposed in 2019, Fathomorg has developed IVOs (Independent Verification Organizations) — an ecosystem of METR-like bodies (including METR itself) that license and verify frontier AI. He claims the framework was passed in California and forms the backbone of the FRONTIER Act.

Related event: DeepMind co-founder pushes regulatory markets over FINRA-style AI oversight(2 posts)→

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