Senate Commerce Chair Ted Cruz (R-Texas) insisted Tuesday the idea of a 10-year moratorium on state and local artificial intelligence laws remains alive — despite a Republican argument that knocked it out of the summer’s budget bill.
“Not at all dead,” Cruz said at POLITICO’S AI & Tech Summit on Tuesday. “We had about 20 battles, and I think we won 19. So I feel pretty good.”
Cruz said the controversial proposal made it further than conventional wisdom in Washington suggested it could, ultimately passing scrutiny with the Senate’s rules referee thanks to the “very creative” work of his staff.
He took a swipe at the Democratic-led states that have been most aggressive in passing tech legislation in the past few years: “Do you want Karen Bass and Comrade Mamdani setting the rules for AI?,” he asked, referring to the Los Angeles mayor and New York City mayoral candidate.
Cruz acknowledged the moratorium fell out due to the opposition of Sen. Marsha Blackburn (R-Tenn.), who was worried about the fate of her own state’s law protecting musicians from AI copyright violations.
Cruz suggested the two are not in further talks about a path forward.
“She is doing her own thing,” Cruz said, while saying he was working closely with the White House.
Many in Washington have long suspected the idea’s legislative prospects were effectively dead after the GOP budget bill passed without its inclusion. It was also opposed by a firm bloc of Republicans, including conservatives like Sen. Josh Hawley (Mo.), Rep. Marjorie Taylor Greene (Ga.) and Steve Bannon.
Cruz has been actively engaged on artificial intelligence issues throughout the current Congress. Last week, he offered a regulatory “sandbox” proposal that would effectively loosen the regulatory load on emerging AI technologies.
White House Office of Science and Technology policy director Michael Kratsios formally endorsed Cruz’s new plan during a committee hearing. Rep. Jay Obernolte (R-Calif.), a leading House voice on AI issues, is preparing his own legislation and hoping for “legislative oxygen” to advance it by the end of the year.
Cruz said that “of course” his legislation would ensure certain existing laws, like consumer safety protections, remain in force — amid concerns from outside groups and Democrats that it could imperil the ability to enforce current protections.
He said failing to pass laws unshackling AI would only benefit U.S. adversaries.
“The biggest winner of the status quo with no moratorium is China. Why? Because we’re going to see contradictory regulations,” Cruz said.



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