WEEK OF MAY 19, 2025
Mission: (Im)Possible? Congress Scrambles Before Recess 💣⏱️💥
State of Play:
The House and Senate are in session this week.
The House Budget Committee passed the reconciliation bill on Sunday evening, after the measure failed the first time on Friday. Several “hardliner” Republican Members voted “present” to finally move the legislation forward. The bill still faces an uphill battle. Leadership also issued a warning that Members will not be released for the Memorial Day recess until they pass the bill.
Driving the News:
The Senate is preparing a vote on landmark crypto legislation as soon as today. The GENIUS Act is the most recent attempt to establish a stablecoin regulatory framework this week. More on that below.
The Securities and Exchange Commission (SEC) is seeking congressional approval to disband and redistribute the responsibilities of its innovation wing, the Office of the Strategic Hub for Innovation and Financial Technology (FinHub).
Three Things to Watch in Tech
1. Deepfakes on the Docket Again: It is another big week for AI on Capitol Hill and deepfakes will be the topic du jour.
President Trump is set to host a signing ceremony today at 3pm in the Rose Garden for the TAKE IT DOWN Act, prohibiting non-consensual intimate deepfake images on the internet. The bill notably garnered significant bipartisan support as well as the backing from First Lady Melania Trump.
The Senate Judiciary Privacy Subcommittee is also set to discuss deepfakes on Wednesday at its star-studded hearing. Witnesses include singer Martina McBride, as well as representatives from YouTube and the Recording Industry Association of America. It will be interesting to see what the Subcommittee’s priorities will be around deepfakes now that Congress passed TAKE IT DOWN. Members may look to regulating protections for creators, copyright concerns, and more.
The House Energy and Commerce CMT Subcommittee will also hold an AI hearing this week, focused on the future of AI regulations and US leadership.
2. Crypto’s Current Status: Congress has made significant strides on crypto legislation, following several attempts last Congress. The Senate is on the verge of passing hallmark legislation to establish a stablecoin regulatory framework in the GENIUS Act.
Senate Republicans will seek a new cloture vote as early as today on Senator Bill Hagerty’s (R-TN)GENIUS Act. The bill continues to face an uphill battle however, as the bill lost some of its Democratic support last week.
Bill cosponsors have since introduced two new rounds of bill text to alleviate some Democrat’s concerns, but whether or not it is enough to garner “yes” votes remains to be seen.
The House continues to face hurdles on making crypto headway, as its last hearing to examine a crypto market structure framework led to a walkout led by House Financial Services Ranking Member Maxine Waters (D-CA).
3. States AI Moratorium Gains Momentum: The House Energy and Commerce Committee made waves last week after unveiling and passing its budget reconciliation bill that would implement a 10-year moratorium on state and local AI regulations.
The provision has sparked a much larger debate on the autonomy of states to create their own regulatory laws on emerging technologies, particularly in the name of consumer protections.
Some Members of Congress, including Chairman Ted Cruz (R-TX) and Rep. Jay Obernolte (R-CA), argued that the provision is vital for ensuring US leadership and countering China.
The provision faces a long-road ahead, however, due to lack of bipartisan support and the Senate’s Byrd Rule subjecting irrelevant (non-budgetary) language in reconciliation packages to a point of order. If this happens, Chairman Cruz announced his plans to include the moratorium provision in pending AI legislation.
What's Happening This Week
Tech Hearings
The House Appropriations Financial Services and General Government Subcommittee holds a hearing on the Securities and Exchange Commission - Tuesday, May 20 at 10:00 AM EST
The House Science, Space and Technology Environment Subcommittee holds a hearing on "Innovations in Agrichemicals: AI's Hidden Formula Driving Efficiency" - Tuesday, May 20 at 10:15 AM EST
The Senate Judiciary Committee holds a hearing on "Defending Against Drones: Setting Safeguards for Counter Unmanned Aircraft Systems Authorities"- Tuesday, May 20 at 10:15 AM EST
The House Oversight and Government Reform Cybersecurity, Information Technology, and Government Innovation Subcommittee holds a hearing on "Breach of Trust: Surveillance in Private Spaces"- Tuesday, May 20 at 12:00 PM EST
The House Appropriations Financial Services and General Government Subcommittee holds a hearing on "Oversight Hearing of the Federal Communications Commission" - Wednesday, May 21 at 10:00 AM EST
The House Energy and Commerce Commerce, Manufacturing, and Trade Subcommittee holds a hearing on "AI Regulation and the Future of U.S. Leadership" - Wednesday, May 21 at 10:15 AM EST
The Senate Judiciary Privacy, Technology, and the Law Subcommittee holds a hearing on "The Good, the Bad, and the Ugly: AI-Generated Deepfakes in 2025" - Wednesday, May 21 at 2:30 PM EST
Tech Events
The American Bar Association - "2025 AI and the Practice of Law Summit" - Monday, May 19 to Tuesday, May 20
ITIF - Virtual Discussion on "The DOJ v. Google Ad Tech Decision: Did the Court Get It Right?" - Monday, May 19 at 2:00 PM EST
The Center for a New American Security - Virtual Discussion on Maintaining America's AI Edge - Monday, May 19 at 2:00 PM EST
The Atlantic Council - Discussion on "Confronting Russia's Cyber Power: Reassessing Assumptions, Sizing Up the Threat, and Building a Proactive Response" - Tuesday, May 20 at 11:30 AM EST
The Federal Communications Commission - Open Meeting - Thursday, May 22 at 10:30 AM EST
Meme of the Week
