S. 5252 — BLADE Act

This section expresses the sense of Congress that closed-source artificial intelligence models owned by United States private sector entities are essential to economic and national security, that model extraction attacks by persons of concern threaten those interests and related intellectual property rights, and that the government should cooperate with model owners to identify, punish, and deter such attacks while distinguishing them from authorized training practices.

This section defines terms used in the Act, including closed-source artificial intelligence model, country of concern (the People’s Republic of China including Hong Kong and Macau, the Russian Federation, and designated countries in Country Group D:5 as of January 1, 2026), person of concern, fraudulent account network provider, model extraction attack, and United States person.

This section directs the Secretary of Commerce, through the Under Secretary for Industry and Security and in coordination with the Operating Committee for Export Policy, to complete within 180 days of enactment an assessment identifying persons of concern that have conducted model extraction attacks on closed-source artificial intelligence models owned by United States persons or that are fraudulent account network providers. It requires a report to the appropriate congressional committees within 210 days, annual updates for three years, ongoing assessments thereafter, consultation with affected model owners and experts, and an information-sharing mechanism with industry.

This section directs the Under Secretary of Commerce for Industry and Security to add to the Entity List, within 210 days of enactment, any entity identified as conducting model extraction attacks or facilitating them through fraudulent account networks, as well as any subsidiary owned 50 percent or more by such an entity. It also requires the President to block all property and interests in property of those entities under the International Emergency Economic Powers Act, subject to exceptions for humanitarian assistance, intelligence, law enforcement, and national security activities, a national interest waiver upon written certification and report to Congress, and penalties under 50 U.S.C. 1705.