This week in federal AI policy brings a heavy emphasis on U.S. data security and quantum advancements, including as the focus of multiple hearings and introduced legislation.

NIST rolled out a new quantum entanglement project open to the public. The SEC announced the withdrawal of proposed rulemaking on targeted broker-dealer/adviser use of AI and behavioral nudging.

White House AI & Crypto Czar David Sacks pushed back on Republican opposition to a federally-imposed moratorium on state enforcement of AI regulation, prompting a robust response from Rep. Marjorie Taylor Greene (R-GA).

The Senate Parliamentarian determined the ten-year moratorium on state enforcement of AI regulation satisfies the Byrd Rule requirements for inclusion in the reconciliation bill, so the provision will remain unless opponents are able to strip it from the bill.

Read more below

Congress

Hearings

• This week
  • On June 24, the House Oversight and Government Reform Cybersecurity, Information Technology, and Government Innovation Subcommittee will hold a hearing on Preparing for the Quantum Age: When Cryptography Breaks.
  • On June 25, the House Select Committee on China will hold a hearing on Algorithms and Authoritarians: Why U.S. AI Must Lead.
  • On June 25, the House Ways and Means Health Subcommittee will hold a hearing on Health at Your Fingertips: Harnessing the Power of Digital Health Data.

Legislation

• The House Committee on Science, Space and Technology approved The Post Quantum Cybersecurity Standards Act and the Small Business Artificial Intelligence Advancement Act.

• Select Committee on China Chair John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), House Intelligence National Security Agency and Cyber Subcommittee Chair Darin LaHood (R-IL) and Ranking Member Josh Gottheimer (D-NJ) introduced the Advanced AI Security Readiness Act to directs the National Security Agency (NSA) to develop an AI security playbook to defend American advanced technology against our foreign adversaries. (Text)(Press release)

• Sen. Cynthia Lummis (R-WY) introduced the Responsible Innovation and Safe Expertise (RISE) Act to clarifying that professionals using AI systems in their practice retain the legal duty to exercise due diligence, verify the system’s outputs, and stand behind the advice they deliver. (Text)(Press release)

• Sen. Jon Husted (R-OH) and Rep. Brittany Pettersen (D-CO) introduced the Preventing Deep Fake Scams Act to address deep fake scams by establishing a task force on AI in the financial services sector. (Text)(Press release)

• Rep. Sara Jacobs (D-CA) and Sens. Mazie Hirono (D-HI) and Ron Wyden (D-OR) reintroduced the My Body, My Data Act to create a new national standard to limit the personal reproductive and sexual health data that can be collected, retained, used, or disclosed to only what is needed to deliver a product or service, including by entities not covered under HIPAA, to require regulated entities to develop and share a privacy policy outlining how they collect, retain, use, and disclose personal reproductive health information, and to create a private right of action. (Press release)

• Sen. Tim Sheehy (R-MT) and Rep. David Schweikert (R-MT) introduced a bill to establish a pilot program for testing a predictive risk-scoring algorithm for oversight of payments for durable medical equipment and clinical diagnostic laboratory tests under Medicare. (Text)

• Sens. Eric Schmitt (R-MO), Maggie Hassan (D-NH), and Tim Sheehy (R-MT) introduced the Medicare Transaction Fraud Prevention Act to use artificial intelligence to identify waste, fraud, and abuse in the Medicare system. (Press release)

Correspondence

• Reps. April McClain Delaney (D-MD), Doris Matsui (D-CA), Greg Landsman (D-OH), Troy Carter (D-LA) and 23 colleagues sent a letter to Senate leadership urging them to strike a provision in the Senate Commerce Committee’s budget reconciliation bill that would condition Broadband Equity, Access, and Deployment (BEAD) funding on states complying with a ten-year moratorium on enforcing their own artificial intelligence regulations. (Letter)(Press release)

• Senate Committee on Commerce, Science and Transportation Ranking Member Maria Cantwell (D-WA) and Democratic Committee members Sens. Amy Klobuchar (D-MN), Brian Schatz (D-HI) Ed Markey (D-MA), Gary Peters (D-MI), Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Jacky Rosen (D-NV), Ben Ray Luján, (NM), John Hickenlooper (D-Colo.), Lisa Blunt Rochester (D-DE), and Andy Kim (D-NJ) sent a letter to Commerce Committee Chair Ted Cruz urging he follow regular order and schedule a markup for the budget reconciliation text he released last week and expressing concern with provisions, including the state AI moratorium. (Letter)(Press release)

Trump Administration

Securities and Exchange Commission (SEC)

• The SEC announced the withdrawal of 14 proposed rulemakings issued between 2020 and 2023, including Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers: Targeted broker-dealer/adviser use of AI and behavioral nudging. (Federal Register)

National Institute of Standards and Technology (NIST)

• NIST and the University of Colorado Boulder announced the first random number generator that uses quantum entanglement to produce verifiable random numbers. The service, called the Colorado University Randomness Beacon (CURBy), is free to the public and uses a NIST-developed protocol called Twine that allows data from the beacon to be traced, verified, and protected from manipulation. (Press release)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• AI and Crypto Czar David Sacks tweeted, “While I agree with MTG on most issues (especially Ukraine), in this case I believe that a temporary moratorium on state AI regulation is the correct small government position. The alternative is a patchwork of 50 different regulatory regimes driven by the AI Doomerism that is becoming a dominant strain on the American and European Left. Funded and astroturfed by left-wing Silicon Valley billionaires like Dustin Moscovitz, the constant fear-mongering is intended to scare us into adopting their agenda of Regulatory Capture, WokeAI, and Global AI Governance. They already have regulatory initiatives underway in most Blue states as well as European capitals. (Some Republicans are also falling for their fake “China Hawk” rhetoric, even though AI over-regulation primarily benefits China.) A federal moratorium on state regulation is justified under the Commerce Clause when inconsistent state laws would substantially burden interstate commerce. That is the case here. The America First position should be to support a moderate and innovation-friendly regulatory regime at the federal level, which will help rather than hobble the U.S. in winning the AI race.” (MTG response below)

Commodity Futures Trading Commission (CFTC)

• CFTC Commissioner Kristin Johnson delivered remarks at the RegHub Summit London 2025 on The Future of Finance: Enabling AI Tools To Enhance Compliance and Surveillance, saying, “In the context of AI, I believe there is significant potential for these technologies to enhance the tripartite approach to regulation—my earlier reference to three-dimensions or a three-legged stool of governance and compliance mentioned. Successful integration of AI will require careful consideration by firms and the industry as well as thoughtful regulatory oversight by domestic and international regulators. For a few hundred years, we have been on a journey to create a sound regulatory framework. My personal journey in service is not nearly as long but I am deeply committed to ensuring that we land on the right path as we integrate and potentially regulate AI. In becoming a CFTC Commissioner, I have had the privilege and the pleasure of fulfilling a personal professional goal—serving my country in a role that I hope fosters a healthy economy that enables responsible innovation, protects customers, and ensures the integrity and stability of financial markets for generations to come.” (Remarks)

CONGRESS

• In his opening statement at a Senate Judiciary hearing on Scammers Exposed: Protecting Older Americans from Transnational Crime Networks, Chair Chuck Grassley (R-IA) said, “AI needs just seventeen words of a person’s real voice to create an entire script that sounds like them. So, it’s believable when a caller that sounds just like your child or grandchild claims to need a few thousand dollars after an at-fault car accident. There’s a scam out there designed to entrap each of us.” (Press release)

• Sen. Chris Murphy (D-CT) published on Substack a post about “existential risks unregulated artificial intelligence pose to America’s economy and collective well-being,” saying, “I want to beat China in the race for advanced AI. I do. But not at any cost. If we do not use government policy and intervention to control for the job loss and to protect consumers, it won’t matter that we get to AGI before China. Unbounded, AGI could eliminate so many jobs and undermine so many of our values, that China will cheer our decision to rush to AGI in our blind, feverish desire to be first. Ultimately, China could end up winning the race, because we destroy ourselves along the race route.” (Press release)

• At a fireside chat on AI and civil rights, Sen. Ed Markey (D-MA) said, “Today’s discussion provided powerful evidence of the risks AI poses for marginalized communities and workers in Massachusetts and across the country. I remain committed to fighting for a just digital future and that starts by protecting those who are most affected by these emerging technologies. That is why I authored the AI Civil Rights Act. My legislation would protect the public’s civil rights and liberties during the development and deployment of algorithms that make critical life decisions for individuals on everything from housing to health care. We need to chart a path forward for AI that protects civil rights, empowers workers, and promotes innovation rooted in accountability.” (Press release)

• Markey tweeted, “Republicans are still pursuing their unacceptable plan to block states from regulating AI. I’m ready to fight with every tool I have. I will be filing an amendment to strip this provision from their “Big Beautiful Bill”. Republicans better be prepared to vote on it.”

• After the Parliamentarian’s decision that the AI moratorium can proceed as part of reconciliation, Markey tweeted, “My amendment to strip the AI moratorium from the reconciliation bill is ready to go. I urge other members to join me and block this dangerous provision.”

• Rep. Pat Fallon (R-TX) tweeted, “The US needs to win the AI race against China if we want to maintain our military’s decisive edge. Timely access to vital information will be a greater key to victory in future potential conflicts than weapons.”

• Fallon also tweeted, “AI is reshaping warfare, and China is capitalizing on it. From autonomous drones to cyber ops, our greatest adversary is advancing quickly. We must double down on AI innovation, secure our supply chains, and protect our data. We cannot afford to let the CCP dominate this space.”

• Sen. Chris Murphy (D-CT) tweeted, “I’m about to leave for a short trip to Europe. In Romania, I will be the first U.S. government official to meet their newly elected pro-Western President. In France, I will give a speech on the need for the U.S. and Europe to work together to prevent massive job loss from AI.”

• Murphy also tweeted, “JD Vance’s February speech here in Paris on AI was delusional. He parroted AI industry talking points, in particular that advanced AI will not kill jobs. It will. AI comes with huge upside, but if we have no plan to manage the job loss, we could face societal collapse.”

• Murphy also tweeted, “The most thorny challenge of advanced AI will be its impact on the human soul. What happens to us when we outsource so many basic human functions – creation, conversation, problem solving – to machines? I raised this question yesterday in my Paris speech.”

• Murphy also tweeted, “Earlier today I gave a speech at sciencespo in Paris, laying out the argument for a U.S./EU regulatory approach to AI that rejects JD Vance’s insistence that we put AI industry profit and greed ahead of protecting jobs and our spiritual well being. A [thread] on my main points. Vance gave a speech in Paris in February that argued for no regulation of AI in Europe or America. It was a delusional and incoherent speech that appeared to be written by the AI industry that seeks to make billions of rapid replacement of human labor by AI and robots. He argued that AI would create more jobs in the U.S. and Europe than it destroys. This is patently untrue. The AI industry wants us to believe this so we don’t protect against the profits they will make if we don’t properly manage the transition to AI dominance. But in their more candid moments, the industry admits the job loss will be steep and destabilizing. As many as 50% of entry level white collar jobs could disappear, spiking U.S./EU jobless levels by 20%. That level of unemployment would destabilize our democracies. Instead, we could impose a regulatory framework that requires real safety and ethical standards for the deployment of AI in our most critical industries. That could slow or manage the pace of job loss. Vance also inferred the industry would self police and choose to protect consumers and families instead of simply hunt profits. That is also not true. From deep fakes to immoral chatbots, the industry is already showing it cares first about money. Unchecked, advanced AI will kill millions of jobs and lead to deep spiritual rot in the human race. Properly controlled, we can get the life changing benefit of AI (I believe in the transformational upside!) while protecting ourselves from the risks of societal breakdown.”

• Murphy also tweeted, “Amidst the flood of headline grabbing news in 2025, the rapid acceleration of AI will go down as the biggest story we all missed. I wrote a Substack on how our economy and culture could collapse if we don’t put guardrails on AI immediately.”

• Sen. Amy Klobuchar (D-MN) tweeted, “Seniors are often the targets of scams that have become more sophisticated with AI voice cloning. In 2024, seniors lost over $4.8 billion to fraud — we need rules of the road to protect Americans from high-tech scammers.”

• Sen. Chuck Grassley (R-IA) tweeted, “Judic Cmte 2day examined threats posed by scammers & transnational crime networks Criminals r exploiting technology+AI to drain BILLIONS frm American households We must ensure all Americans especially older Americans r protected frm these horrible crimes”

• Sen. Chris Van Hollen (D-MD) tweeted, “On his trip to the UAE, Trump agreed to give valuable U.S. AI technology to a UAE-owned company — just 2 weeks after ERIC Trump struck a deal with another UAE firm to use $2B to boost the Trump family’s crypto business. I broke down this brazen, pay-to-play corruption last week”

• Rep. April McClain Delaney (D-MD) tweeted, “The BEAD program is about connecting every community not playing politics with public safety. I joined my colleagues in urging the Senate to remove a reckless provision that would force states to give up their ability to regulate AI just to access broadband funding. That’s wrong. We can close the digital divide and protect people from the risks of unregulated AI. We don’t have to choose and we shouldn’t have to.”

• Delaney also tweeted, “States should NOT have to choose between expanding essential broadband infrastructure and protecting their residents—especially children and small businesses—from the rapidly evolving risks of artificial intelligence. So I’m urging the Senate Majority to reject the 10-year AI moratorium within the budget package and insist on a transparent, stand-alone debate—because families and small businesses deserve better than backroom deals that serve Big Tech.”

• Delaney also tweeted, “his morning I joined alivitali on MSNBC’s WayTooEarly to discuss the dangerous AI regulation moratorium in the House Majority-passed Budget Reconciliation Bill. Linking critical broadband funding — intended to close the digital divide, support rural communities, and provide lifesaving services — to the suppression of state-level AI oversight is both coercive and irresponsible. It forces states to choose between expanding internet access to better rural America and safeguarding their residents from potentially harmful and untested technologies. I strongly urge my US Senate colleagues to reject this harmful moratorium on AI regulation and allow states to continue to invest in rural broadband as originally intended.”

• Delaney also tweeted, “Digital assets and AI are already shaping how we live and work from small business payments to food safety on farms. But with innovation can come risks. That’s why I’m working to strengthen the bipartisan CLARITY Act with practical safeguards – my amendments close loopholes, require real conflict-of-interest rules, and ensure a level playing field for all market entrants. Getting it right will ensure a more trust worthy financial eco-system.”

• Rep. Josh Gottheimer (D-NJ) tweeted, “With U.S. entrepreneurs under threat from foreign adversaries like China, we must protect American innovation from espionage and theft. That’s why I’m proud to co-lead the bipartisan Advanced AI Security Readiness Act to safeguard our national security and ensure America remains a leading force in advancing AI.”

• Gottheimer also tweeted, “We must protect U.S. innovation from espionage and theft by foreign adversaries like China. That’s why I’m proud to lead the bipartisan Advanced AI Security Readiness Act with RepLaHood to safeguard our AI technologies and protect our national security.”

• Sen. John Cornyn (R-TX) tweeted, “Yes, permanent. AI ban subject to Byrd ‘bath.’ Doubtful it survives.”

• Sen. Cynthia Lummis (R-WY) tweeted, “Today I introduced the RISE Act of 2025 — legislation to protect innovation, empower professionals, and bring real transparency to powerful AI systems. Here’s what it does, and why it matters for America’s future. AI is moving fast. It’s already being used in medicine, law, finance and other fields where decisions carry real weight. But right now, developers and professionals are unclear on where liability sits when these systems are used. That uncertainty hurts everyone. The RISE Act changes that. It creates a safe harbor for AI developers — only if they meet clear standards for transparency and documentation. No secrecy. No hiding the ball. Just responsible innovation. Under the RISE Act, developers must publish: -A Model Card: how the AI was trained, tested, and where it performs well or fails -A Model Specification: what prompts & constraints shape the system’s behavior. This lets doctors, lawyers, & other pros use AI safely and wisely. In return, if a licensed professional uses the AI tool with full knowledge of its capabilities and something goes wrong, the developer is protected from civil lawsuits — as long as they acted responsibly. No protection for reckless or deceptive devs. Period. Good AI policy is about drawing a smart line: – Developers have a duty to be transparent. – Professionals have a duty to use sound judgment. – If both do their job, innovation shouldn’t be punished when mistakes happen. RISE is pro-innovation, pro-transparency, and pro-accountability. It gives AI developers a clear legal framework. It gives professionals the tools they need to serve clients safely. And it gives America a real shot at leading in safe AI deployment. One more thing: RISE also protects against abuse. – No immunity for fraud or misconduct. – No immunity for non-professional use. Bottom line: If we want America to lead and prosper in AI, we can’t let labs write the rules in the shadows. We need public, enforceable standards that balance innovation with trust. That’s what the RISE Act delivers. Let’s get it done.”

• Lummis also tweeted, “The future isn’t coming; it’s already here. Proud to introduce first-of-its-kind AI legislation that encourages innovation and protects professionals and their clients”

• Rep. Dan Crenshaw (R-TX) tweeted, “nergy demand is skyrocketing as we onshore manufacturing and compete with China on AI. Now more than ever, we need MORE reliable power—not less. Biden’s power plan regulations would force reliable and affordable energy offline, and scare off new investment. Amazing work by EPALeeZeldin to restore common sense to energy policy and ensure every American has access to power that’s affordable, reliable, and built for the future.”

• Rep. Brett Guthrie (R-KY) tweeted, “The battle for AI isn’t just a tech issue; it’s the issue that will determine who leads the world through the 21st Century. As Chairman of HouseCommerce, I have made it our committee’s top priority to develop the necessary energy to power the growth of AI and put America first.”

• Rep. Jake Auchincloss (D-MA) tweeted, “Mark Zuckerberg is pitching AI chatbot friends for kids. This is why the GOP’s 10-year moratorium on states’ AI regulation is a bad idea.”

• Sen. Bernie Sanders (I-VT) tweeted, “AI is coming for YOUR job and jobs all across the country. Who will benefit from this revolutionary transformation? Will it be working class Americans or the billionaires who own the technology? That is the economic struggle of our time.”

• Sen. Ted Cruz (R-TX) tweeted, “AI is transformational technology that will have a massive impact on productivity and jobs. It is critical that America win the race to AI.”

• Energy and Commerce Committee tweeted, “American AI dominance rests on achieving American energy dominance. We cannot afford to put climate goals over energy production.”

• Rep. Julie Fedorchak (R-ND) tweeted, “Just introduced the Baseload Reliability Protection Act to prohibit the retirement of reliable baseload generators in regions at an elevated risk of power shortages! With increasing demand from AI, preventing early retirements is KEY to securing our grid and meeting demand.”

• Sen. Elizabeth Warren (D-MA) tweeted, “Why is the AI company Nvidia pushing for a 10-year ban that’d stop states from putting in safeguards around AI? Because they want to shape the rules so they can make more money. This is just one more example of Nvidia putting its profits over consumers and national security.”

• Rep. Marjorie Taylor Greene (R-GA) responded to David Sacks, tweeting, “Hi David, I think the AI discussion is one of the most important issues we can plan for. For context of my background and conceptual framework. As a business owner in construction, I am pro business and understand the labor issues and needs better than most. As a Representative in the U.S. House, I believe protecting federalism is essential, constitutional, and the American way. Every innovative industry in our country’s history has had to rise under each states ability to regulate and make laws on behalf of their citizens. Tying our states hands behind their back for 10 years with a moratorium freezing states ability to regulate and make laws is the opposite of federalism and makes us no different than China with a big government power grab. Allowing states to regulate and make laws will preserve the state’s abilities to choose their path. Currently on the federal level, Congress has not developed a federal regulatory plan for AI yet. We would be preemptively destroying federalism for 10 years without a plan. We know governors and states are ranked on job creation and economic stats. By protecting federalism, some states will compete to be the most AI friendly and will make decisions to recruit AI tech companies with varieties of incentives. Other states may choose to be less AI friendly and that’s their right. My district is a filled with wonderful working class people. Many of whom will have their jobs replaced by AI and AI driven robotics. I’ve watched Georgia’s rural communities devastated for the last 40 years after manufacturing jobs were sent overseas and once those plants shut down, other jobs were scarce. This destroyed small towns, their economies, and consequently it destroyed families as well. How many human jobs will AI replace over the next 10 years? It’s predicted to replace a large swath of human jobs in many areas. And once AI replaces all of those human jobs, they will not have hardly any jobs to find. My district has an unemployment rate of 2.9% but after AI job replacement, we could see unemployment rates we’ve never seen before. This would lead to poverty and homelessness we’ve never seen before. And with a 10 year moratorium, states would have no way to regulate and make laws to protect people. The people are who matter to me. My children in their 20’s and their future children are who matter to me, and all of their generations. Once many human jobs are replaced, who is paying these unemployed people? How do they feed their families? The economy will collapse. And when they are no longer paying federal and state taxes because they can’t, how will that affect government funding? The future is unknown and I believe in order to best lookout for people I’ve sworn an oath to serve, I must defend federalism. Besides this AI clause in the One Big Beautiful Bill doesn’t belong in the bill. That bill is supposed to be the president’s campaign promises, which are taxes, energy, and very much needed border security and deportations. Poison pills kill great bills. Republicans must address AI separately with sincere diligent efforts instead of the typical tricks of shoving a 19 year federalism moratorium in a big thousand page bill. I want to see this done right to be good for all.”

About Zero One Strategies

Zero One Strategies is a boutique government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

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