The Trump administration unveiled a nonbinding national AI legislative framework urging Congress to adopt a unified federal approach, arguing that inconsistent state laws would undercut innovation and U.S. competitiveness. The blueprint organizes policy around six core areas: protecting children and empowering parents; strengthening communities; intellectual property and creator rights; free speech protections; accelerating AI innovation; and workforce development.
A central feature of the proposal is a push for federal preemption of state AI laws. “Congress should preempt state AI laws that impose undue burdens,” the framework says, warning that “a patchwork of conflicting state laws would undermine American innovation and our ability to lead in the global AI race.” To lower barriers to deployment the plan calls for regulatory sandboxes, expanded access to federal datasets, and fewer constraints on companies seeking to bring AI products to market. The administration also opposes creating a new, dedicated AI regulator.
On intellectual property, the framework takes a cautious stance: it states the administration believes training AI models on copyrighted material does not violate copyright law, but acknowledges opposing legal views and supports allowing the courts to settle the matter.
The proposal links AI growth to energy and infrastructure policy, urging faster permitting for data centers, backing on-site power generation, and insisting that residential ratepayers should not shoulder the costs of new infrastructure. Other recommended measures include tools and safeguards to protect minors online, initiatives to counter AI-enabled fraud, and workforce training programs aimed at preparing workers for AI-driven shifts in labor demand.
Because the framework is nonbinding, it requires Congressional action to become law.
Layoffs mount as AI adoption accelerates across crypto
While the White House emphasizes workforce development and job creation in an AI-driven economy, it does not directly address near-term displacement risks as companies rapidly integrate AI. Those risks are already materializing in the crypto sector, where firms adopting AI are cutting staff.
In February, Block said it would reduce its workforce by roughly 40%, with co-founder Jack Dorsey citing rapid AI tool adoption as a key factor. Messari announced layoffs and a leadership change as it shifts toward an AI-first strategy after earlier cuts in 2025. Crypto.com plans to cut up to 12% of its employees as it integrates AI; CEO Kris Marszalek warned that companies that fail to pivot quickly “will fail.” Market turmoil has also driven reductions: the Algorand Foundation said it would cut about 25% of its workforce, pointing to a market downturn and broader macroeconomic uncertainty.
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