Contrary to belief, the crypto industry's primary need is not deregulation but clear, predictable rules. The ambiguous "regulation through enforcement" approach, where rules are defined via prosecution, creates uncertainty that drives innovation and capital offshore.

Maintaining a significant technological lead over China is not just about competition. It allows US policymakers the time and space to develop a thoughtful, robust, and predictable domestic AI regulatory framework without the pressure of a neck-and-neck race, which forces chaotic, reactive measures that harm innovation.

David Sacks contrasts President Trump's approach to AI—enabling companies to build their own power generation for data centers—with what he calls a more restrictive, "doomer" approach. This highlights a focus on winning the AI race through practical, pro-growth solutions rather than broad-stroke regulation.

To pass a moratorium on state-level AI laws, the White House now acknowledges the need for a federal framework. Michael Kratsios expressed a desire for "regulatory certainty" and a willingness to work with Congress on a national policy covering areas like child safety and intellectual property.

A favorable SEC chairman provides temporary relief, but long-term investment and innovation in the U.S. crypto industry depend on the permanent stability that only legislation can provide, insulating it from the whims of future political administrations.

The administration's executive order to block state-level AI laws is not about creating a unified federal policy. Instead, it's a strategic move to eliminate all regulation entirely, providing a free pass for major tech companies to operate without oversight under the guise of promoting U.S. innovation and dominance.

The government is imposing export controls and release requirements on AI labs without a clear legal framework. Unlike the crypto era's lawsuits, which provided detailed complaints, this "regulation by enforcement" operates without published rules, creating extreme uncertainty for AI companies.

Coinbase's policy chief reveals the Trump administration is fast-tracking crypto-friendly regulations. The strategy is to establish them so firmly in market practice that courts would be hesitant to allow a future, less favorable administration to reverse them, effectively creating regulatory 'stickiness' that outlasts a single political term.

The final AI executive order, signed without fanfare, reduces the government model review period from 90 to 30 days. This reflects a compromise between internal White House factions—one pushing for safety regulations and another fearing any rules that could slow US innovation against China.