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Trump Targets State AI Rules with Sweeping Federal Order

November 21, 2025
in Crypto Updates
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US President Donald Trump is getting ready an govt order that might cease states like California from setting their very own guidelines for synthetic intelligence (AI).

In line with a draft seen by Axios, the order would inform Legal professional Basic Pam Bondi to type a federal crew to assessment and problem state AI legal guidelines. This crew might additionally recommend limiting federal funding to states that move guidelines deemed too restrictive.

The Federal Commerce Fee can be requested to elucidate how present client safety legal guidelines might take the place of recent state laws.

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David Sacks, who advises Trump on AI and cryptocurrency points, would lead a lot of the follow-up work.

Trump has warned that state-level AI legal guidelines might sluggish progress and hurt US management in know-how. On Fact Social, he said that native guidelines threat dividing the nation’s AI coverage and giving opponents a bonus. He wrote:

Some States are even attempting to embed DEI ideology into AI fashions, producing ‘Woke AI’.

The draft said that American firms must be free to develop AI with out “cumbersome regulation”. It famous that state lawmakers have proposed greater than a thousand AI-related payments, which might weaken innovation in the event that they battle with one another.

The Commerce Division would assessment inside 90 days whether or not states’ AI guidelines have an effect on their eligibility for broadband funding.

Sacks not too long ago warned that the largest menace posed by AI is a system that displays residents and shapes what they’re allowed to see and listen to. Why? Learn the complete story.



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Tags: FederalOrderRulesStatesweepingTargetsTrump
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