Trump White House Proposes National AI Framework, Urges Federal Standard

The Trump administration has released a national AI legislative framework for the United States, calling on Congress to establish a unified federal framework and warning that a patchwork of state laws could hinder innovation and competitiveness.

The framework is structured around six core policy areas: protecting children and empowering parents, strengthening communities, intellectual property and creator rights, free speech protections, accelerating AI innovation and workforce development.

At the center of the proposal is a push for a unified federal approach, with the administration urging Congress to preempt state-level AI laws it says could burden developers. 

“Congress should preempt state AI laws that impose undue burdens,” the framework states, warning that “a patchwork of conflicting state laws would undermine American innovation and our ability to lead in the global AI race.”

The framework also calls for fewer barriers to AI deployment, regulatory sandboxes and expanded access to federal datasets, while opposing the creation of a new dedicated AI regulator.

On intellectual property, the proposal states:

Although the Administration believes that training of AI models on copyrighted material does not violate copyright laws, it acknowledges arguments to the contrary exist and therefore supports allowing the Courts to resolve this issue.

It also ties AI expansion to energy policy, urging faster permitting for data centers and support for on-site power generation, while saying residential ratepayers should not bear the cost of new infrastructure.

Additional measures include tools to protect minors online, efforts to combat AI-enabled fraud and workforce training initiatives aimed at preparing workers for AI-driven shifts.

The framework is nonbinding and will require Congressional action to be enacted.

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Layoffs begin to mount as AI adoption accelerates across crypto

While the White House framework emphasizes workforce development and job creation in an AI-driven economy, it does not address the risk of job displacement as adoption accelerates across industries.

That shift has already become visible in the crypto sector, where companies are rapidly integrating AI across operations. Over the past two months, a growing number of fintech and crypto companies have reported layoffs.

In February, Jack Dorsey’s payments company Block said it would cut roughly 40% of its workforce, with the co-founder pointing to the rapid use of AI tools as a key driver behind the restructuring. 

More recently, blockchain data provider Messari announced layoffs alongside a leadership change, as the company pivots toward an AI-first strategy following an earlier round of cuts in 2025.

The trend continued this week, with Crypto.com saying it plans to cut up to 12% of its workforce as it integrates AI across its operations. On Thursday, CEO Kris Marszalek warned on X that “companies that do not make this pivot immediately will fail.”

Volatility in the crypto market has also led to staff reductions. On Wednesday, the Algorand Foundation said it would cut about 25% of its workforce, citing broader market downturns and macroeconomic uncertainty.

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