Federal Reserve Chair Jerome Powell and Treasury Secretary Scott Bessent convened an emergency meeting with major U.S. bank CEOs to discuss cybersecurity threats posed by Anthropic's new Mythos AI model, according to sources familiar with the matter. The rare government intervention signals mounting concern that advanced AI capabilities could be weaponized by hackers targeting the nation's financial infrastructure. Anthropic has restricted Mythos to a select group of vetted organizations while it develops additional safeguards.
Anthropic's latest AI model just triggered something unprecedented - a direct intervention from the highest levels of U.S. financial leadership. Federal Reserve Chair Jerome Powell and Treasury Secretary Scott Bessent personally briefed CEOs from JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo on cybersecurity vulnerabilities associated with the company's Mythos AI system, according to people briefed on the discussions.
The closed-door meetings, which took place over the past week, represent the first time federal banking regulators have issued proactive warnings about a specific commercial AI product. That alone tells you how seriously Washington is taking the potential threat. Unlike typical regulatory guidance that trickles down through official channels, Powell and Bessent wanted banking executives to hear this directly.
What makes Mythos so concerning? The AI model reportedly demonstrates capabilities that could be exploited for sophisticated financial fraud, social engineering attacks, and penetration of banking security systems. While Anthropic hasn't publicly detailed Mythos's full feature set, sources say it combines advanced reasoning with real-time data analysis in ways that could circumvent traditional fraud detection.
Anthropic made the unusual decision to roll out Mythos only to a carefully vetted list of enterprise customers rather than its typical broad release strategy. The company's working with cybersecurity firms and government agencies to develop what it calls "misuse-resistant deployment protocols" before wider availability. That's a significant departure from the move-fast mentality that's defined much of the AI industry's product launches.
The timing couldn't be more sensitive. Banks are already dealing with a surge in AI-powered fraud attempts, with losses from synthetic identity fraud alone expected to exceed $23 billion this year. Adding a more capable AI tool to that threat landscape has risk officers scrambling to update their defenses.
"We're essentially in an AI arms race where both the attackers and defenders are upgrading simultaneously," one chief security officer at a major regional bank told colleagues in an internal memo reviewed by sources. "But the defenders are operating under regulatory constraints that don't apply to criminal organizations."
The Federal Reserve's involvement goes beyond just briefings. The central bank is reportedly developing new stress testing scenarios that incorporate AI-driven cyber attacks on payment systems and clearing houses. Treasury is coordinating with the Financial Crimes Enforcement Network to establish reporting requirements for financial institutions using advanced AI models.
For Anthropic, this creates a delicate balancing act. The company has positioned itself as the responsible AI leader, emphasizing safety and ethical deployment since its founding by former OpenAI executives. But even responsible development can produce tools with dual-use potential. The company's backed by Google, Amazon, and other tech giants who've invested billions expecting commercial returns.
The restricted rollout is already impacting Anthropic's enterprise pipeline. Several Fortune 500 companies that had planned Mythos implementations are now in holding patterns, waiting for clearer regulatory guidance. That's created an opening for competitors like OpenAI and Microsoft, whose models haven't triggered the same level of government scrutiny.
Banking executives are caught between wanting access to cutting-edge AI capabilities and avoiding regulatory blowback. One thing's clear from the Powell-Bessent meetings - deploying Mythos or similar advanced models without explicit approval from examiners could invite intense regulatory scrutiny. That's made chief information officers much more cautious about AI vendor selection.
The situation also reveals gaps in existing AI governance frameworks. Current banking regulations weren't written with large language models in mind, and there's no established playbook for how to evaluate an AI system's security implications before deployment. Regulators are essentially building the plane while flying it.
What happens next will set precedent for how the government approaches AI safety in critical infrastructure sectors. If the Fed and Treasury can develop workable frameworks for Mythos deployment, it could become a template for healthcare, energy, and defense applications. If the restrictions prove unworkable, it might push advanced AI development further underground or overseas.
The Mythos situation marks a turning point in how Washington regulates frontier AI systems. By intervening before a breach occurs rather than reacting after damage is done, Powell and Bessent are signaling that AI safety in financial infrastructure won't be left to industry self-regulation. Banks now face the reality that deploying advanced AI isn't just a technology decision but a regulatory compliance issue that requires sign-off from the highest levels. For Anthropic and other AI developers, the message is equally clear - building safer AI isn't enough if the government determines your product poses systemic risks to critical infrastructure. The frameworks developed over the coming months will likely define AI governance across sectors for years to come.
