THE DECODER

The White House has reportedly put a hold on a draft executive order that would have let federal law override state-level AI regulations. According to Reuters, the draft called for the Department of Justice, led by Pam Bondi, to form a task force that could challenge states with stricter AI rules. The plan would have shifted full authority for AI legislation to the federal government. Critics warned that this approach threatened consumer protections and states' rights.

The move comes as Donald Trump continues pushing broad deregulation in the AI sector following his return to office in early 2025. The debate has intensified since early October, when California passed SB 53, the country's first comprehensive safety and transparency law for major AI companies. Google, OpenAI, and other tech firms have backed nationwide rules, arguing that a patchwork of state laws would slow innovation.