WEEK OF JUNE 16. 2025
Crypto Clash, China Chips, & Child Safety
State of Play:
The Senate is in session through Wednesday this week. The House is in recess.
President Donald Trump is attending the G7 summit in Alberta, Canada. Trump has said that he and Carney intend to discuss a US-Canada trade deal, and that he has a “tariff concept” in mind.
Driving the News:
The Senate is gearing up for its long-awaited vote on stablecoin legislation tomorrow. Given the procedural cloture vote passed 63-30, it is likely bill sponsors have the votes to cross the finish line. However, President Trump issued a new financial disclosure over the weekend showing $57.3 million in profits from his crypto platform, World Liberty Financial. It is unclear if and how this disclosure will sway the final vote.
Senate Finance Committee Republicans are set to release their portion of the reconciliation package, triggering the start of the Byrd Rule review process. There are unresolved issues though around key provisions including SALT deductions, clean energy tax credits, and Medicaid cuts. Finalizing the bill for Senate and House passage will require significant negotiation given growing divisions from House and Senate Republicans.
Three Things to Watch in Tech:
1. What a US-China Trade Deal Could Mean for Tech: President Trump expressed optimism that a comprehensive trade deal with China could happen "fairly soon," following recent talks that saw modest progress on issues like student visas and critical mineral exports.
While Trump announced on Truth Social that the deal was made, China responded over the weekend that it has not committed to grant export clearance for some specialized rare-earth magnets the US uses in military operations.
During the talks in London, China linked easing its rare earth export controls with the US’s restrictions on advanced AI chip exports. This remains a primary issue in striking a trade deal ahead of the August 10 deadline when US tariffs take effect.
Without clear guidance on critical mineral exports from China, AI chips export controls from the US, and unresolved issues around student and work visas, tech companies could face significant changes approaching August.
Treasury Secretary Scott Bessent struck a more cautious tone on the negotiations than President Trump, suggesting the Administration would prioritize trade deals with allies first to build leverage against China, while acknowledging ongoing tensions from Trump’s broad tariff strategy.
2. Senate Inches Towards Action on Children’s Online Safety: The Senate Judiciary Committee advanced the STOP CSAM Act, which would allow victims of child sexual abuse material to sue tech companies that host their images. The bill also extends mandatory reporting requirements for tech companies to the National Center for Missing & Exploited Children.
With the recent passage of the TAKE IT DOWN Act and the Committee’s action on STOP CSAM, Congress seems poised to tackle children’s online safety issues and regulate online content.
There remains pushback from some Members, however, who argue that stricter rules could impose on free speech protections and threaten encryption.
The House-version of STOP CSAM was also reintroduced last week by Reps. Sylvia Garcia (D-TX) and Barry Moore (R-AL).
3. Senate Judiciary To Look Into Elder Abuse Scams, Consumer Protections: The Senate Judiciary Committee will be holding a
on Tuesday to address the ongoing and growing issue of scams targeting the elderly, including consumer protections against scams powered by AI, robocalls, and other technologies.
The hearing will likely examine the most prevalent scams that elderly Americans face, including AI-generated scams.
The Committee has been highly active on addressing consumer protections, particularly around online safety and internet activities.
Witnesses include industry experts and stakeholders, including Josh Bercu from USTelecom, and witnesses close to the issue from the Scammer Stories Podcast and the National Elder Fraud Coordination Center.
What's Happening This WeekTech Hearings
The Senate Judiciary Committee will hold a hearing to examine scammers exposed, focusing on protecting older Americans from transnational crime networks - Tuesday, June 17 at 10:15 AM EST
Tech Events
The Peterson Institute for International Economics holds a book discussion on "The Great Trade Hack: How Trump's 2025 Tariff Blitz Fails and the World Moves On" - Monday, June 16 at 11:00 AM EST
The American Enterprise Institute for Public Policy Research holds a virtual discussion on "Trump, Tariffs, and the Economic Outlook" - Wednesday, June 18 at 10:00 AM EST
