PYMNTS.com September 25, 2025

California may soon lead the nation in regulating powerful AI models. The Legislature passed SB 53, the Transparency in Frontier Artificial Intelligence Act, which would require “frontier” AI developers to publish safety protocols, report critical incidents to the state and uphold whistleblower protections. The bill now sits on Governor Gavin Newsom’s desk, and whether he signs it could determine whether California becomes the first to impose legally binding AI guardrails.

Newsom has publicly suggested support for AI oversight legislation. According to Politico, at the Clinton Global Initiative, he said, “We have a bill that’s on my desk that we think strikes the right balance … We worked with industry, but we didn’t submit to industry. We’re not doing things...

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