U.S. Senate Lifts AI Regulation Ban from Tax Reform

U.S. Senate Action: The Senate voted July 1 to remove the AI regulation ban, originally part of the Trump tax reform bill.

The decision aims to standardize AI policy and potentially boost U.S. tech innovation.

U.S. Senate’s Move to Standardize AI Policy

On July 1, the U.S. Senate voted to remove the AI regulation ban from the Trump tax reform bill. Senator Ted Cruz, alongside Rep. Jay Obernolte, played pivotal roles in advocating for this change. The ban’s removal ties eligibility for billions in federal broadband funds to compliance with the AI moratorium.

Immediate changes involve aligning AI policy across the U.S., staving off fragmented regulations. Sam Altman of OpenAI highlighted, “A patchwork approach…would stifle American innovation at a critical time,” while Dario Amodei raised concerns over potential risks. The Senate ruling removes state-specific AI laws temporarily, aligning national policy.

Market reactions include tech leaders (Marc Andreessen of a16z and Palmer Luckey of Anduril) applauding the pro-uniformity approach. Sen. Josh Hawley and Rep. Marjorie Taylor Greene critiqued the moratorium for limiting state autonomy. The industry’s collective response suggests a positive outlook on U.S. tech innovation.

Implications for Broadband and AI Innovation

Did you know? Previous federal preemptions, like internet tax bans, often tilt regulatory risk, incentivizing sectors like earlier internet growth.

Ethereum’s market data, updated as of July 1, 2025, shows a current price of $2,456.23 with a market cap of $296.51 billion and a trading volume of $15.89 billion, according to CoinMarketCap. Recent 24-hour and 90-day price changes indicate slight fluctuations, primarily upward momentum, at a 31.36% increase.

The Coincu research team suggests that standardizing AI regulations could accelerate investment and development. Historical trends highlight that tech sectors often receive boosts when regulatory uncertainties diminish, potentially fostering an environment ripe for growth and innovation in AI and intersecting fields, including blockchain technologies.