Senate Rejects AI Regulation Ban in Landmark Vote

The U.S. Senate voted 99-1 to remove a controversial 10-year ban on state-level AI regulation from the 'Big Beautiful Bill', striking down a measure backed by major tech companies but opposed by bipartisan coalitions. This decisive action preserves states' rights to enact AI safeguards while Congress lacks federal standards.TechCrunch

Why This Matters

States can now enforce existing laws like California's AB 2013 (requiring AI training data disclosure) and Tennessee's ELVIS Act (protecting artists from AI impersonation). Without this vote, over 130 AI regulations passed by 43 states since 2016 would have been nullified for a decade.The Markup

Key Compromise Attempts

Senator Ted Cruz (R-TX) initially proposed the moratorium, arguing it would prevent a 'patchwork of regulations' hindering U.S. innovation against China. After backlash, he negotiated a 5-year ban with exemptions for child safety and artist protections with Senator Marsha Blackburn (R-TN). Blackburn withdrew support hours before the vote, calling the language 'unacceptable' for vulnerable groups.Reuters

Stakeholder Reactions

Opponents celebrated: Arkansas Governor Sarah Huckabee Sanders tweeted 'This is how you take on big tech!' while Consumer Federation's Ben Winters called it a defeat for 'backroom deals'.GovTech Tech proponents warned: OpenAI CEO Sam Altman previously argued state regulations create 'a real mess' for AI services, though he acknowledged some federal oversight is needed.Semafor

What's Next

The bill returns to the House, where representatives must reconcile differences. States may accelerate AI legislation, particularly in sensitive areas like deepfake prevention and algorithm bias auditing. MIT's Max Tegmark noted this 'rejects letting AI companies run amok' but highlights the urgent need for federal frameworks.Future of Life Institute