AI Regulation Shift Tanks Crypto Tokens
AI Regulation Shift Tanks Crypto Tokens
The US Senate's rejection of a 10-year moratorium on AI regulation within the "Big Beautiful Bill" has sent shockwaves through the AI cryptocurrency market. The nearly unanimous vote (99-1) against the moratorium resulted in a more than 5% drop in both market capitalization and trading volume for AI-related tokens within 24 hours.
Big Beautiful Bill's Impact on AI
Trump's "Big Beautiful Bill," a sweeping piece of legislation, initially included a proposal for a 10-year moratorium on state-level AI regulation. This plan, backed by companies like Google and OpenAI, also included a $500 million fund for AI infrastructure development, accessible only to states without AI regulations. However, this provision was overwhelmingly rejected by the Senate.
The Senate's decision reflects concerns about potential downsides of a lengthy regulatory freeze. These concerns included the inability of states to address potential AI-related crimes like fraud, copyright infringement, and the creation of AI-generated child abuse imagery.
Market Reaction and Future Outlook
The AI token market, already experiencing a slump, saw further declines following the vote. While the 5% drop is significant, it's crucial to consider that trading volumes had already fallen by over 38% in the previous 30 days. The long-term impact of this legislative shift remains uncertain. The unpredictable nature of the "Big Beautiful Bill" itself highlights the volatility of the crypto market.
- Market Cap & Volume Drop: Over 5% in 24 hours following the vote.
- Previous 30-Day Decline: Trading volume down over 38%.
- Senate Vote: 99-1 against the AI moratorium.
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Disclaimer
BeInCrypto is committed to unbiased, transparent reporting. This information is for educational purposes only and should not be considered financial advice. Conduct thorough research and seek professional guidance before making any investment decisions.