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Congress Dropped a Plan to Block State AI Rules. Why That Matters for Consumers

UNITED STATES, JUL 1 – The Senate's 99-1 vote preserves states' authority to regulate AI amid concerns over consumer protections and local control, despite strong tech industry support for the ban.

  • The U.S. Senate voted 99-1 early Tuesday morning to remove a 10-year moratorium blocking states from regulating artificial intelligence.
  • This moratorium, pushed by Senator Ted Cruz, aimed to create a national AI framework by preventing a patchwork of state laws, but no such federal framework exists yet.
  • State opposition grew as more than 260 legislators and 40 attorneys general warned the moratorium would hinder protections against AI harms like deepfakes and algorithmic bias.
  • Senator Marsha Blackburn led the amendment to remove the moratorium, acknowledging the need to protect citizens from AI abuses while Cruz’s scaled-back moratorium included exceptions for child safety and likeness rights.
  • The vote preserves state autonomy to regulate AI amid rising proposals and suggests ongoing debate over balancing innovation with consumer protections.
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Brewminate broke the news in on Monday, June 30, 2025.
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