The allure of immediate, multi-billion dollar revenue from auctioning licensed spectrum is an easy political sell. This shortsighted approach overlooks the far greater, albeit harder-to-quantify, long-term economic value generated by keeping spectrum unlicensed, which fosters permissionless innovation.

The U.S. leads in tech because its ecosystem is built on "permissionless innovation"—the ability for founders to create without seeking government approval first. This contrasts with Europe's regulator-centric model and is the crucial element that must be protected to maintain the AI lead.

Silicon Valley's success stems from the freedom for founders to build without prior government approval. Proposed AI regulations threaten this core principle, risking a shift toward the slow, bureaucratic models seen in highly regulated industries like pharma or banking where startups are rare.

Advanced technology used to be expensive, requiring permission from investors or governments. Now, cheap and accessible tools like AI and open-source platforms allow individuals anywhere to innovate disruptively without needing approval, as exemplified by Ethereum.

The success of protocols like Bitcoin stems from their permissionless nature. Anyone, anywhere can contribute, leading to a hyper-competitive market that maximizes efficiency by tapping into previously unused resources like excess energy or stranded compute.

The PC revolution was sparked by thousands of hobbyists experimenting with cheap microprocessors in garages. True innovation waves are distributed and permissionless. Today's AI, dominated by expensive, proprietary models from large incumbents, may stifle this crucial experimentation phase, limiting its revolutionary potential.

The primary barrier to realizing the benefits of new technologies like AI isn't the tech itself, but a societal structure Stripe calls the "Republic of Permissions." Non-market forces like regulators, committees, and courts create synthetic impediments that prevent economically superior solutions from being adopted.

Silicon Valley's economic engine is "permissionless innovation"—the freedom to build without prior government approval. Proposed AI regulations requiring pre-approval for new models would dismantle this foundation, favoring large incumbents with lobbying power and stifling the startup ecosystem.

Unlike private companies seeking product-market fit within a specific segment, designing digital public infrastructure (DPI) requires a different mindset. The goal is creating a level playing field that enables *everyone* to participate and allows markets to innovate on top.