President Donald Trump has signed an executive order aimed at limiting states from setting their own regulations for AI, moving instead toward what the White House described as a unified national approach to the rapidly expanding technology.
The move has the potential to reshape how the U.S. develops and oversees AI, a technology that already plays a major role in financial markets and business operations but is still evolving quickly and often without clear boundaries. Supporters within the administration see federal coordination as critical to keeping the country competitive.
David Sacks, who serves as the administration’s top adviser on AI and crypto, said the executive order instructs agencies to work toward a federal framework in partnership with Congress. Until lawmakers act, he said, the order gives the administration authority to resist what it considers overly burdensome state rules.
Sacks also noted that the administration does not intend to override state measures focused on protecting children or addressing specific safety concerns. In a later social media post, he noted that not every state law related to AI would be challenged.
Technology leaders have largely welcomed the push for national standards. Executives in Silicon Valley, including OpenAI chief Sam Altman, have warned that a complex mix of state laws could discourage innovation and weaken the United States in its competition with China.
The issue has already faced resistance on Capitol Hill. Earlier this year, Republican lawmakers attempted to bar states from enforcing AI regulations for a decade, but the effort failed. The Senate voted by a wide margin to strip that provision from a major domestic policy bill before it passed. A similar proposal was also left out of the annual defense authorization legislation, despite encouragement from Trump.
Critics say easing oversight could allow companies to avoid responsibility if their products cause harm. AI currently faces limited regulation even as it becomes more deeply embedded in daily life, influencing everything from communication to medical decisions and law enforcement practices.
With Congress slow to act, states have moved to fill the gap. Several have passed laws targeting high-risk uses of AI, including biased hiring tools and deceptive deepfake content.
Americans for Responsible Innovation President Brad Carson said the executive order is likely to face legal challenges. He criticized it as an attack on state protections that voters have supported, without offering a comprehensive federal alternative.
Industry voices like Collin McCune of Andreessen Horowitz praised the order as a meaningful starting point but stressed that Congress must ultimately act. States, he said, can address immediate risks, but only federal legislation can provide lasting clarity and direction.
Tech companies like D-Wave Quantum Inc. (NYSE: QBTS) will probably first go through the executive order and analyze its possible implications before commenting on this new development.
NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS
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