The U.S. Senate delivered a near-unanimous rejection of a proposed 10-year moratorium on artificial intelligence regulation, signaling a cautious federal stance on AI governance. The decisive 99-1 vote preserved states’ existing authority to regulate artificial intelligence technologies.
The legislative decision triggered immediate market consequences, with AI-related cryptoassets falling by over 5% within 24 hours of the vote. This sharp decline reflected heightened investor uncertainty surrounding AI development and adoption trajectories.
The defeated proposal was embedded within broader legislation known as the ‘Big Beautiful Bill,’ which included provisions for a $500 million federal AI infrastructure fund. Access to this funding was explicitly restricted to states lacking preexisting AI regulatory frameworks.
Republican lawmakers spearheaded opposition to the moratorium, led by vocal critics including Senator Marsha Blackburn. Critics highlighted potential risks associated with ungoverned AI deployment, emphasizing concerns about its potential misuse enabling illegal or harmful activities.
Industry analysts anticipate the Senate’s stance will foster more nuanced, state-level regulatory environments seeking to balance AI innovation with public safeguards. This decentralized policymaking approach is expected to continue influencing volatility and market sentiment for AI-adjacent cryptoassets.