The Bitcoin Layer Can the U.S. Lead in AI Without Killing Innovation?
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Jul 17, 2025 Yaël Ossowski, Deputy Director of the Consumer Choice Center and the Bitcoin Policy Institute, discusses the contentious landscape of AI regulation in the U.S. He highlights the proposed federal moratorium on conflicting state laws and the risks posed by restrictive policies, particularly from California. Yaël emphasizes the need for a unified, decentralized framework to avoid innovation barriers. The conversation also addresses the legal challenges of copyright in AI training and the importance of engaging the next generation in coding while advocating for open-source, privacy-focused tools.
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Patchwork AI Regulation Challenge
- AI regulation in the U.S. is fragmented with over a thousand state-level bills creating complexity for developers.
- A federal moratorium was proposed to pause state laws and allow a uniform federal framework to emerge.
California Spillover Effect
- California's AI bill requires government approval using a traffic light risk system before launch, mimicking Europe's AI Act.
- This is feared to cause restrictive standards across the U.S., limiting permissionless innovation.
Copyright Lawsuits Threaten Innovation
- Copyright lawsuits, like New York Times vs. OpenAI, challenge AI's use of subscription content for training without clear licenses.
- Resolving fair use for AI training data is crucial to avoid legal battles and support innovation.