Trump’s Approach to AI and Web3 Politics
A New Deregulatory Path Forward
This week is different from others, Donal Trump made it to the Whitehouse for a second period and became the first ever convicted criminal to be elected as president of the United States of America. I don’t have any intention to turn this Sub into a political board, and I don’t want to take any position over whether that was a good or bad decision by American voters. This is a space of AI and Web 3 discussion, where Trump comes with a strong deregulation program to enhance innovation and competitive advantage to US companies.
Backed by major tech players like Elon Musk who donated over 100 Million US to the MAGAs campaign, A16z partners, Ben Horowitz and Marc Andreessen, the Winklevoss brothers, and Jesse Powel also major donors for the Trump campaign.
Trump’s approach to AI and Web3 signifies a pivot from cautious oversight to ambitious deregulation. While this strategy aims to accelerate technological growth and reinforce U.S. leadership, it also brings risks, particularly in consumer data privacy, ethical standards, and cybersecurity. His supporters argue that unfettered innovation will allow the U.S. to maintain a competitive edge, especially against AI-driven economies like China. Critics warn that the absence of regulation could lead to unforeseen consequences for public safety, privacy, and ethical governance.
This position contrasts sharply with the cautious, heavy regulatory stance that defined Biden’s administration, focusing more on safety and ethical concerns in AI development and cryptocurrency oversight. Here’s a look at Trump’s policies.
AI Policy: Streamlining for Innovation
One of Trump's primary promises is to repeal Biden’s AI Executive Order, which introduced a suite of AI safety guidelines, talent initiatives, and transparency requirements. Trump perceives this framework as a stopper for innovation. Instead, he proposes replacing it with a policy rooted in “free speech and human flourishing,” focusing on reducing oversight and enabling faster adoption of AI across both government and private sectors. This approach includes allowing AI technologies to flourish with minimal restrictions and fostering advancements that can support national security and business needs without regulatory friction.
Web3 and Cryptocurrency: A Libertarian Stance
In Web3, Trump has positioned himself as a defender of digital asset freedoms, opposing government oversight. He rejects the idea of a Central Bank Digital Currency (CBDC), arguing it could lead to increased government surveillance over financial transactions and undermine the autonomy of digital currency users. His administration is expected to limit regulatory control over cryptocurrency exchanges and promote an open environment for digital asset ownership, mining, and trading.
Opponents
While Trump has strong support in the tech and venture capital communities, his deregulatory stance has been widely criticized. AI experts and tech companies support regulatory frameworks to mitigate the risks associated with unchecked AI development. Large corporations like Microsoft and Google, have voiced support for regulations that balance innovation with security, ethical standards, and consumer protection. We are aware these companies, have the resources to navigate complex regulations, and argue that guidelines can help prevent risks like algorithmic bias, data misuse, and the malicious use of advanced AI models.
Sam Altman´s OpenAI, advocates for regulatory oversight as a safeguard against potential AI misuse. This divergence in the tech community reflects broader debates about how best to balance rapid advancement with necessary controls to protect public safety and trust
Policy Actions Ahead: AI Deregulation, Trade, and Cybersecurity
With Trump’s victory, several key actions are anticipated:
AI Deregulation: Trump plans to dismantle Biden's AI Executive Order, potentially removing guidelines that require transparency in AI model safety and governance. His administration will simplify policies that prioritize flexibility for startups and tech firms.
Trade Policies: As tariffs on AI hardware components, like semiconductor chips, were a hallmark of Trump’s previous term, there is a possibility of renewed tariffs that could impact AI supply chains, affecting costs and access to critical technologies.
Cybersecurity: While cybersecurity remains a national priority, Trump may scale back the authority and budget of the Cybersecurity and Infrastructure Security Agency (CISA). This change would reflect a preference for private-sector-led security efforts over federal mandates, potentially raising concerns about national vulnerabilities in AI-driven infrastructure.
Trump’s return to office brings a starkly deregulatory stance on AI and Web3. Where the Biden-Harris administration focused on ethical safeguards, transparency, and consumer protection, Trump is flipping the script. He’s looking to roll back existing AI oversight, oppose a Central Bank Digital Currency (CBDC), and cut back on federal cybersecurity agency budgets. This deregulatory stance is all about accelerating tech innovation and letting Silicon Valley giants, especially those backing Trump, take the wheel.
Possible outcomes
Tech Acceleration, Economic Growth: With fewer restrictions, U.S. companies aim to fast-track AI innovations, enhancing everything from health tech to autonomous systems. This could boost the economy, creating tech jobs and reinforcing the country’s status as a global innovation leader.
Data Privacy Concerns: Fewer rules around AI could lead to increased data privacy risks for consumers, as companies may not prioritize protections without federal mandates.
Cybersecurity Threats: If federal budgets for cybersecurity are cut, there may be greater vulnerability in critical AI-driven infrastructure, especially if private firms prioritize profits over security.
Trump’s pro-tech stance aligns with his allies’ vision of a tech-enabled, government-light future. But without a safety net, the U.S. and most world innovation giants are flipping a coin.
Aiming for innovation, and compromising their population's privacy in an unprecedented way.
I am not a huge Trump supporter, but I like the window he is opening to foster innovation.
My last reflection is Mr. Orange is a radical figure, who plays with the radicalism of his followers. We are living through technological changes that enhance the possibility of making exponential changes in almost every single development of modern human life. This means every step we take has a big chance of making an exponential advancement or exponential recoil. Let’s be cautious.