The Trump administration released a national AI legislative framework urging Congress to create a unified federal approach and warning that a patchwork of state laws could hinder innovation and competitiveness. The framework is organized around six core policy areas: protecting children and empowering parents; strengthening communities; intellectual property and creator rights; free speech protections; accelerating AI innovation; and workforce development.
Central to the proposal is a push for federal preemption of state AI laws. “Congress should preempt state AI laws that impose undue burdens,” the framework states, warning that “a patchwork of conflicting state laws would undermine American innovation and our ability to lead in the global AI race.” It calls for fewer barriers to deployment, regulatory sandboxes, expanded access to federal datasets, and opposes creation of a new dedicated AI regulator.
On intellectual property, the proposal says: “Although the Administration believes that training of AI models on copyrighted material does not violate copyright laws, it acknowledges arguments to the contrary exist and therefore supports allowing the Courts to resolve this issue.”
The framework also ties AI expansion to energy policy, urging faster permitting for data centers and support for on-site power generation while saying residential ratepayers should not bear the cost of new infrastructure. Additional measures include tools to protect minors online, efforts to combat AI-enabled fraud, and workforce training initiatives to prepare workers for AI-driven shifts. The framework is nonbinding and requires Congressional action to be enacted.
Layoffs begin to mount as AI adoption accelerates across crypto
While the White House framework emphasizes workforce development and job creation in an AI-driven economy, it does not directly address job-displacement risks as adoption accelerates across industries. That risk is already visible in crypto, where companies are integrating AI and cutting staff.
In February, Jack Dorsey’s payments company Block said it would cut roughly 40% of its workforce, with the co-founder citing rapid use of AI tools as a key driver. Messari announced layoffs and a leadership change as it pivots toward an AI-first strategy following earlier cuts in 2025. Crypto.com plans to cut up to 12% of its workforce as it integrates AI; CEO Kris Marszalek warned that “companies that do not make this pivot immediately will fail.” Volatility in the crypto market has also led to reductions: the Algorand Foundation said it would cut about 25% of its workforce, citing market downturns and macroeconomic uncertainty.
Related: Super Micro co-founder arrested over alleged $2.5B AI chip smuggling scheme
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