Trump’s big beautiful bill includes a 10-year suspension on AI regulations, causing several set flaws in the associated tokens. Both trade volume and market capitalization of AI crypto assets have exceeded 5% in the past 24 hours.
The senators shot down the moratorium overwhelmingly in a 99-1 vote. Still, the market sector is already in a recession, making it difficult to determine the impact of the bill.
Big beautiful bills won’t help AI
Trump’s big beautiful bill is an important law covering a huge range of topics. The bill has changed shape many times due to intense political debate, but today it finally passed the Senate.
However, the senators have overwhelmingly rejected the language of the bill that supports AI, showing massive responsibilities across the industry.
The vote was almost unanimous and showed genuine anxiety about the industry. Certainly, Tom Tillis, the only senator who voted for it, has already announced he will not seek reelection.
Many crypto assets are linked to the AI industry, and since the bill’s language changed, the market sector has gained several major hits. Market capitalization and volume both declined by more than 5%.
You have a market sector. Source: CoinMarketCap
So this leaves me with some questions. What was the position of AI’s big beautiful bill? Why did the Senate overwhelmingly reject them? Can the AI token market continue to show declines in trade volume and market capitalization?
The bill’s plan was essentially to impose a 10-year moratorium on all US AI regulations. This could have taken the form of a complete ban or more regression method.
It had proposed a $500 million fund on AI infrastructure development, but only states with zero AI regulations now have access to this money. Google and Openai supported this plan.
Such a vision would have caused a lot of problems, and even Senator Crypto put it on. If the bill bans AI regulations for 10 years, the state will be powerless to prevent future AI-related crimes.
Obvious crimes include fraud and copyright infringement, but as some senators warned, people can even use AI tools to simulate depictions of child abuse. This possibility has prompted prominent Republicans like Marsha Blackburn to deny the effort.
Unfortunately, it is difficult to say how the bill will affect the AI token market in the long term. So far, the big beautiful bill is already very unpredictable.
For example, Elon Musk’s opposition to the bill caused some musk-related memecoins to flourish, but Dogecoin fell by more than 5%. This confusion can create new opportunities, but it is uncertain where they will appear.
Furthermore, the AI token sector was already in a recession before the bill was passed. These 5% declines are concerning, but AI asset trade volumes have exceeded 38% in the last 30 days.
Compared to other macroeconomic concerns, these legislative hurdles may not leave a permanent mark for this sector.
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