This week in federal AI policy, Congressional hearings addressed AI’s role in cybersecurity, education, and competition, with upcoming attention focusing on AI’s economic impact and its integration into K-12 education.

The SEC hosted a roundtable discussing AI’s transformative potential in finance. Michael Kratsios was confirmed as Director of the White House Office of Science and Technology Policy. The ODNI finds China has implemented a strategy to displace the U.S. as the world’s most influential AI power by 2030.

Read more below

Congress

Hearings

• Last week
  • On March 25, the Senate Armed Services Cybersecurity Subcommittee held a closed hearing on Harnessing Artificial Intelligence Cyber Capabilities.
  • On March 25, the House Energy and Commerce Energy Subcommittee held a hearing on Keeping the Lights On: Examining the State of Regional Grid Reliability.
  • On March 25, the Senate Select Committee on Intelligence held a hearing on the 2025 Annual Worldwide Threats Assessment
  • On March 26, the House Permanent Select Committee on Intelligence held a hearing on the 2025 Annual Worldwide Threats Assessment
• This week
  • On April 1, the House Oversight and Government Reform Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee will hold a hearing on America’s AI Moonshot: The Economics of AI, Data Centers, and Power Consumption.
  • On April 1, the House Education and the Workforce Early Childhood, Elementary, and Secondary Education Subcommittee will hold a hearing on From Chalkboards to Chatbots: The Impact of AI on K-12 Education.
  • On April 2, the House Judiciary Administrative State, Regulatory Reform, and Antitrust Subcommittee will hold a hearing on Artificial Intelligence: Examining Trends in Innovation and Competition.

Legislation

• Sens. Jon Husted (R-OH), Joni Ernst (R-IA), and Marsha Blackburn (R-TN) introduced the Leveraging Artificial Intelligence to Streamline the Code of Federal Regulations Act to require the use of artificial intelligence to review agency regulations. (Text)(Press release)

• Sens. Mike Rounds (R-SD) and Martin Heinrich (D-NM) reintroduced the MedShield Act to create a program titled MedShield to leverage AI for national pandemic preparedness and response. (Text) (Press release)

Correspondence

• Sen. Jacky Rosen (D-NV) sent a letter to Federal Trade Commission (FTC) Chairman Andrew Ferguson on the use of artificial intelligence by corporations to target individuals with different prices for the same products through surveillance pricing, urging the FTC to reverse the decision to close a public comment window early. (Letter)(Press release)

• Sen. Elizabeth Warren (D-MA) sent a letter to Paul Atkins in advance of his confirmation hearing to be Chair of the SEC, asking, “Former SEC Chair Gary Gensler cautioned last year that while Artificial Intelligence (AI) ‘opens up tremendous opportunities for … great efficiencies across the economy,’ AI ‘may play a central role in the after-action reports of a future financial crisis’ because of the ‘dependencies and interconnectedness of potentially 8,316 financial institutions to [one] AI model or data aggregator.’ 1. Do you see any potential concerns with the integration of AI into our financial system? Please explain if there is risk associated with financial stability, fraud, conflicts of interest, bias, and deception. 2. In your view, are there opportunities for the SEC to improve its efficiency and regulatory effectiveness by deploying AI? What barriers stand in the way of further deployment?” (Letter)

Publications

• Sen. Jon Husted (R-OH) published an op-ed in the Wall Street Journal on his Leveraging Artificial Intelligence to Streamline the Code of Federal Regulations Act to require the federal government to use an artificial intelligence tool to identify redundant and outdated rules. (Op-ed)(Press release)

• Rep. Brett Guthrie (R-KY) published on op-ed in the Washington Times on Driving the Energy Future of AI Development. (Op-ed)

Trump Administration

Office of the Director of National Intelligence

• The ODNI issued its annual threat assessment, finding “China almost certainly has a multifaceted, national-level strategy designed to displace the United States as the world’s most influential AI power by 2030. China is experiencing a boom in generative AI with the rapid emergence of a large number of PRC-developed models, and is broadly pursuing AI for smart cities, mass surveillance, healthcare, S&T innovation, and intelligent weapons. Chinese AI firms are already world leaders in voice and image recognition, video analytics, and mass surveillance technologies. The PLA probably plans to use large language models (LLMs) to generate information deception attacks, create fake news, imitate personas, and enable attack networks. China has also announced initiatives to bolster international support for its vision of AI governance.” (Unclassified Report)

Securities and Exchange Commission (SEC)

• The SEC hosted a roundtable to discuss the risks, benefits, and governance of AI in the financial industry.

White House

• The Senate confirmed Michael Kratsios to serve as director of the White House Office of Science and Technology by a 74-25 vote.

Noteworthy Quotes and Events

ADMINISTRATION

Securities and Exchange Commission (SEC)

• In his opening remarks at the SEC roundtable on AI in the Financial Industry, Acting Chair Mark Uyeda said, “Financial regulators should take a technology-neutral approach to regulation. I have been concerned with some recent Commission efforts that might effectively place unnecessary barriers on the use of new technology. We should avoid an overly prescriptive approach that can lead to quickly outdated, duplicative rules, a “check the box” approach to compliance, and impediments to innovation. To the extent that advances in technology, such as AI, create potential gaps in our regulatory structure or point to the need for additional guidance, it is the Commission’s responsibility to address those gaps or provide guidance in ways that encourage innovation while protecting investors. The Commission must be mindful of its statutory authority and prioritize effective and cost-efficient regulations in this space.” (Remarks)

• In her opening statement, Commissioner Hester Peirce said, “Today’s roundtable is a great step toward a better understanding of artificial intelligence, its role in the financial industry, and how to think about regulating it. A better understanding can dispel unfounded fears and enable us to focus on real problems and to identify tailored solutions. To that end, I have several questions that the panelists may wish to consider: What areas of the securities industry are likely to be most transformed by AI in the next five years? Should we do anything as a regulator to prepare for these changes? Do firms need guidance from the Commission about their usage of artificial intelligence technology, and how should the Commission deliver such guidance? Given the rapid pace of technological evolution in this space, how do we ensure that any potential Commission guidance or regulations related to the use of artificial intelligence do not quickly become outdated? Relatedly, how do we ensure that our actions do not stifle innovation and remain technologically agnostic? Finally, how do we avoid overreacting to the most egregious cases of artificial intelligence misuse and letting it define our rules and guidance?” (Remarks)

• In her opening statement, Commissioner Caroline Crenshaw laid out key questions, “What is artificial intelligence?  How do we achieve greater precision in our terminology and definitions? How is AI being deployed in the financial services industry today? And how will it be used in the future?  I ask this with respect to all industry participants – how is it used by broker dealers, investment advisers, issuers, intermediaries, markets, investors and other stakeholders? Are the most common uses investor-facing, related to investing or the deployment of capital, or are they in pursuit of back-office efficiencies? Is AI being deployed by companies or by their service providers? What governance mechanisms are in place to oversee AI systems – especially those systems that may employ ‘black box’ algorithms, where it’s not clear how inputs are weighed or outputs derived?  What do those governance mechanisms look like?  And is AI being used at board or governance levels? And what oversight is applied to ensure that legal and regulatory responsibilities are met – both fiduciary and professional obligations, as well as the relevant rules governing trading mechanics or back-office functions? What disclosures are being made around AI uses and risk, and are they consistent and sufficient? Are there areas where investors are left vulnerable by the use of AI – either susceptible to fraud or systematic disadvantage? Are there systemic market or volatility risks associated with the use of AI that we need to be focused on?” (Remarks)

CONGRESS

• Sen. John Barrasso (R-WY) delivered floor remarks saying, “America is making bold innovations in new technology. Only an all-of-the-above energy approach is going to sustain it. Coal is one the most affordable, reliable and abundant sources of energy. In America today it is much cleaner than ever before. With it, we can power our data centers. We can win the energy race. We can win the artificial intelligence race. And clearly, this is a focus against Communist China. Wyoming energy producers and Wyoming energy workers are going to lead the charge to victory. American energy dominance is the source of our nation’s strength. It keeps America and our allies safe and secure, now and into the future.”

• Rep. Kevin Kiley (R-CA) delivered floor remarks saying, “Mr. Speaker, I have the honor of chairing the Subcommittee that has jurisdiction over all of K-12 education. And I wanted to let folks know about a very important hearing that we’re having next Tuesday at 10:15 A.M. ET on artificial intelligence and its uses in education. Some folks might hear the topic of that hearing and think about things like well, is A.I. making it easier for students to cheat or is this going to absorb young people even further into digital worlds? Those are certainly concerns. But the focus of our hearing is going to be on the upside, on the tremendous potential, the boundless opportunities that A.I., even as it exists right now, let alone what its capabilities are going to be in a matter of weeks and months and years, the unbelievable opportunities to close achievement gaps and advance student achievement. I firmly believe that if it isn’t already true now, it will be true in a very short time that every child in America now has the ability to get a richer, more immersive education than any child did just a few years ago.”

• Rep. Laurel Lee (R-FL) tweeted, “I recently joined PunchbowlNews to discuss the future of artificial intelligence and how Congress can ensure the U.S. remains a global leader in AI innovation while protecting against emerging threats. I’m committed to taking an agile approach to AI innovation and advancing policies that bolster our workforce, foster innovation, and safeguard our national security.”

• Rep. Jimmy Gomez (D-CA) tweeted, “Hollywood runs on talent—on screen and behind the scenes. In our district, 33K SAGAFTRA members power this industry. This week, I met with members fighting for fair pay, strong benefits, and the right to control their own likeness as AI grows. I’ll always have their back—and will fight to bring production back to LA.”

• Rep. Jake Auchincloss (D-MA) tweeted, “Before: America was good at inventing, China was good at building. Now: China is getting better at inventing ($ into biotech, AI, quantum) while America is getting worse (attacks on NIH & FDA, IP, visas). China is pulling back on overbuilding, while America is trying to build more with TBD results (abundance agenda). Future: The nation that gets good at both inventing and building wins.”

• Rep. Mark Green (R-TN) tweeted, “I believe that if an insurance company is telling a physician that they can’t consider several solutions to a patient’s problem, that is a medical decision. Meanwhile an AI algorithm or someone looking at a sheet of paper at an insurance company is making these decisions. That’s just wrong.”

• Energy and Commerce Committee tweeted, “RepGuthrie in his WashTimes Op-Ed: ‘For AI to be implemented at scale in the U.S., we must have a flexible, pro-innovation regulatory environment … Innovation – not regulation – will be key to U.S. AI dominance.’ HouseCommerce is fighting for America to lead the world in AI innovation.”

• Rep. Morgan Griffith (R-VA) retweeted the Energy and Commerce Committee adding, “Let’s make America the AI capital of the world!”

• Rep. Eric Swalwell (D-CA) tweeted, “We are more vulnerable than ever to a cyber attack. Cybersecurity is national security. We must continue to invest in CISA’s workforce, strengthen our defenses against cyberattacks, and remain the leaders of AI into the future.”

• Sen. Jacky Rosen (D-NV) tweeted, “Recent advances are allowing corporations to use AI to raise prices for families. To make matters worse, the FTC closed the public comment period on this EARLY. They must reverse this decision & hear from the public about how this will hurt them & why the FTC must act.”

• House Science Committee tweeted, “xoceansocial Chief Technology Officer Mr. Shepard Smith discussed the future role of AI and machine learning in ocean exploration during today’s Environment Subcommittee hearing.”

• Rep. Yvette Clarke (D-NY) tweeted, “As AI continues its rapid advancement, the risk algorithmic discrimination poses to consumers has never been greater. In the face of this growing threat, an FTC that believes in meaningful bipartisanship is necessary to protect Americans and advocate for their interests.”

• Rep. Pat Fallon (R-TX) tweeted, “As China is focused on improving its AI capabilities as a means to wage asymmetrical warfare on the US and the west. Promoting the advancement of AI innovation will ensure we stay ahead of the CCP.”

• Sen. Rick Scott (R-FL) tweeted, “Thank you Pres. Trump & howardlutnick for holding Communist China accountable for stealing our AI technology & weaponizing it to undermine our national security. Communist China has chosen to be our adversary, & no American company should be helping them.”

• House Homeland GOP tweeted, “Foreign terrorist organizations are using emerging technology, such as generative AI, as a potent weapon in their arsenal to radicalize individuals online. RepPfluger’s bill would require DHS to annually assess the threat this poses to our homeland security.”

• Sen. Cynthia Lummis (R-WY) tweeted, “Congratulations to Michael Kratsios on his confirmation as Director of the Office of Science and Technology Policy. This admin is revolutionizing our government’s efficiency w/ modern tech & I look forward to collaborating w/MKratsios47 on issues like AI that impact our future.”

• Sen. Todd Young (R-IA) tweeted, “Congratulations to mkratsios47 on being confirmed as Director of the Office of Science and Technology Policy. I look forward to working with you on AI, quantum, biotech, and other emerging tech issues important to our national security.”

• Rep. Jay Obernolte (R-CA) tweeted, “Congratulations to MKratsios47 on his confirmation as Director of the Office of Science and Technology Policy. His proven leadership in emerging technologies will be invaluable as the United States navigates the future of artificial intelligence and digital innovation. I look forward to working together to advance American technological leadership!”

• Rep. Mike Bost (R-IL) tweeted, “The United Arab Emirates and President Trump recently agreed to a massive $1.4 trillion investment deal with the U.S., bringing big opportunities for American manufacturing, AI development, and semiconductor production. This is what strong leadership on the world stage looks like: strengthening our economy, creating jobs, and keeping investment here at home instead of losing it to China and other foreign adversaries. Another BIG win for President Trump and the America First agenda!”

What I’m Reading This Week

• Judge allows ‘New York Times’ copyright case against OpenAI to go forward, Bobby Allyn, NPR

• D.C. Circuit Denies Copyright to AI Artwork – What Humans Have and Artificial Intelligence Does Not, Seiko Okada and Dr. Christian E. Mammen, National Law Review

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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