U.S. President Donald Trump looks on, as he signs an executive order on AI in the Oval Office at the White House in Washington, D.C., U.S. Dec. 11, 2025.
Al Drago | Reuters
President Donald Trump signed an executive order Thursday issuing a single regulation framework for artificial intelligence, undermining the power of individual states.
The Trump administration, with the aid of AI and crypto czar David Sacks, has been pursuing a path that would allow federal rules to preempt state regulations on AI, a move meant to keep big Democratic-led states like California and New York from exerting their control over the growing industry.
There has been a growing debate over AI, specifically related to an increasing number of individual state laws that could conflict with a federal standard.
The move marks a win for tech companies, who’ve argued against states rights when it comes to regulation on artificial intelligence.
AI companies have been ramping up lobbying, opening offices close to the Capitol and launching campaigns through a super PAC with at least $100 million to spend on the midterm elections in 2026.
States across the country are legislating on AI. States like Colorado and California have proposed bills requiring risk assessments and disclosure related to AI. OpenAI, Andreessen Horowitz and Google are among the company lobbying to block state laws that regulate AI, arguing a patchwork of regulation across the country would prevent the U.S. ability to compete in the global AI race.
A draft version of a proposed executive order surfaced last month, proposing a single federal standard on AI “instead of a patchwork of 50 State Regulatory Regimes.”
Sacks and fellow tech investor and podcaster Chamath Palihapitiya stood beside Trump during the signing. Following Trump’s election, Sacks was appointed as the White House AI and “Crypto Czar” to guide administration policy, while Palihapitiya maintains high-level access to White House leadership as a vocal supporter.
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