On December 11, 2025, President Donald Trump signed an executive order that creates a single regulatory framework for artificial intelligence (AI), which diminishes the authority of individual states in this area. The order emphasizes the need for U.S. AI companies to operate without what it describes as 'cumbersome regulation,' arguing that excessive state regulation could hinder innovation.

The Trump administration, supported by David Sacks, the White House AI and crypto czar, is advocating for federal regulations to take precedence over state laws, particularly to limit the influence of Democratic-led states such as California and New York on the burgeoning AI industry. During the signing ceremony in the Oval Office, Trump was accompanied by Sacks, tech investor Chamath Palihapitiya, Senator Ted Cruz (R-TX), and Commerce Secretary Howard Lutnick.

This executive order is seen as a victory for major tech companies, including OpenAI and Google, as well as venture capital firm Andreessen Horowitz, which have been lobbying for reduced regulatory constraints. These companies have been actively establishing offices near the Capitol and have initiated campaigns through a super PAC with a budget of at least $100 million for the upcoming midterm elections in 2026. Advocates for a federal regulatory standard argue that a uniform approach is essential for maintaining the U.S.'s competitive edge in the global AI landscape, as opposed to a fragmented system of regulations across the 50 states.