Trump Administration Revokes Biden-Era AI Semiconductor Export Controls – Coincu

The Trump administration announced plans to repeal the Biden-era AI semiconductor export controls on May 14th. This policy shift is spearheaded by Jeffery Kessler from the U.S. Department of Commerce.

This move alters regulatory landscapes for tech giants while potentially reshaping infrastructure within AI and blockchain sectors.

Trump Scraps Semiconductor Export Controls Against Industry Pushback

The Trump administration has decided to revoke the Biden-era AI semiconductor export controls that faced opposition from industry leaders such as Nvidia and Oracle. Under the guidance of the U.S. Department of Commerce and Bureau of Industry and Security, the decision aims to ease regulatory burdens on American companies. Jeffery Kessler, Under Secretary of Commerce for Industry and Security, announced this initiative.

The rescinded AI Diffusion Rule would have imposed compliance requirements starting in 2025. Its cancellation is expected to alleviate constraints on U.S. tech firms and facilitate global business operations. The U.S. maintains stringent controls on Huawei AI chips to safeguard its tech industry.

The industry has generally reacted favorably to the repeal of the Biden-era regulations. This development is seen as aligning with the interests of businesses struggling under previous export restrictions. Kessler stated:

“The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries. At the same time, we reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.”

Policy Change May Influence Blockchain and AI Integration

Did you know? The U.S. implementation of semiconductor controls traces back to October 2022, focusing on curtailing transfers to China—a policy reversal here could reshape strategy.

Ethereum (ETH) is currently trading at $2,690.22, with a market cap of $324.79 billion. Though ETH observed an 8.43% rise in 24 hours, long-term analysis shows a mixed trend over 90 days, with a mild decrease of 1.40%. The cryptocurrency market, often indirectly influenced by tech sector dynamics, remains observant of broader industry changes.

The Coincu research team suggests that while immediate direct impacts on cryptocurrencies are limited, shifts in AI export regulations could indirectly influence blockchain infrastructure developments. Historical trends indicate that policy changes in related tech arenas can signal broader potential market adaptations.

Trump’s crypto policy has been a topic of debate, often intersecting with traditional tech policies. The impacts on Coinbase’s global outlook and other exchanges reflect how policies reverberate across sectors.