The last time we wrote about the war between state-by-state AI law advocates and the Silicon Valley crew pushing for one federal law, we asked you to take a wild guess on who’d win.
And if you picked the Silicon Valley squad with their $100 million super PAC — congrats, you might’ve just called it.
Because rumor has it… things are tipping their way. Fast.
So here’s the tea:
A leaked draft says the Trump administration is cooking up an executive order that would basically kneecap states’ power to regulate AI.
The play? Create a new task force under Attorney General Pam Bondi, with one mission — shutting down state-level AI laws.
And here’s the argument: state-by-state AI rules allegedly interfere with the federal government’s authority over interstate commerce.
In plain English: “States, take a seat. AI rules are a D.C. thing now.”
Now, important caveat: we don’t know if Trump will actually sign this.
The White House hasn’t commented, and sources say this draft could be anything from “imminent” to “just floating around the West Wing.”
But the political winds? Oh, they’re blowing loud and clear.
The federal-first crowd — Ted Cruz, a few Silicon Valley megadonors, and a whole roster of VCs — argues that a patchwork of state laws would crush startups and slow innovation.
Meanwhile, state-regulation supporters argue that Congress is moving at the speed of a Windows 98 loading screen, so states have to jump in.
And then the digital-rights folks walked in with a flamethrower.
The Center for Democracy and Technology basically said:
“Nope. A President can’t nuke state laws with an executive order. That’s Congress’ job. End of story.”
And fun fact: Congress already kind of agreed.
Remember that 99–1 Senate vote rejecting Cruz’s attempt to ban state AI laws?
Yeah. That wasn’t subtle.
But Trump’s not backing down.
He posted on Truth Social that the U.S. “MUST have one Federal Standard” for AI instead of a 50-state patchwork.
And just hours before that post, House Majority Leader Steve Scalise announced he’s trying to slip a federal ban on state AI rules into the National Defense Authorization Act.
Then yesterday, at the U.S.–Saudi Investment Forum, Trump doubled down again, saying AI companies can’t be “running through 50 states” or letting “one woke state” set the bar for everyone else.
If that doesn’t scream “Silicon Valley might get its wish,” I don’t know what does.
So here’s the big picture:
This isn’t just about laws. It’s about who gets to steer the future of AI — the states, Congress, or a White House trying to centralize control.
And depending on how this shakes out, AI could speed up, slow down, or slam into a regulatory brick wall.
What do you think?
One federal AI standard… or 50 states keeping each other honest?
We want your take, so hop into our prediction markets and weigh in!
Here’s where you can find out more info.
