WEEK OF May 5, 2025 

Congress' Crypto Complications

State of Play: 

  • The House and Senate are in session this week. 

  • Trump’s “megabill” reconciliation package is the hot topic. But Committee markups on the reconciliation package have been delayed until next week. Speaker Mike Johnson is set to meet with moderates over proposed Medicaid cuts and the lack of progress on raising the state-and-local tax deduction cap.

Driving the News: 

  • The Trump Administration issued his “skinny” proposed budget on Friday, calling for $163 billion in federal spending. This includes roughly a 23 percent reduction in nondefense discretionary spending. What does this mean for tech? More on that below. 

  • Over the weekend, Senate Democrats who previously expressed support for passing stablecoin legislation reneged their support due to concerns about weakened anti-money laundering and financial system safeguards. Republicans and bill sponsors had hoped to pass the bill on the Senate floor this month, but whether or not there is enough support is unclear.

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Three Things to Watch in Tech:

1. How Trump’s Budget Impacts Tech: President Trump’s “skinny” budget proposal issued Friday would bring steep cuts to certain agencies while largely sparring others, including several key tech programs.     

  • The budget preserves funding for AI and quantum research at the National Science Foundation, despite cutting $4.7 billion from the agency overall. However, while certain NSF AI programs were spared, other tech programs face reductions including staff cuts up to 50 percent. 

  • The Department of Energy also faces a $1.1 billion cut to climate-related AI research, as the budget shifts focus away from environmental priorities.

  • NIST would also face steep cuts, but like NSF, its AI and emerging tech programs are largely unaffected. 

  • The Cybersecurity and Infrastructure Security Agency (CISA) also saw its budget trimmed under the proposed budget. CISA would receive a $491 million cut to its nearly $3 billion budget, eliminating programs related to misinformation and election security. 

2. Big Week in Congress for AI and Emerging Tech: The House and Senate are set to have some major hearings centered around AI, quantum, and emerging tech this week, setting the stage for congressional priorities to come. While there have been plenty of hearings so far this congress on AI, Members have not delivered a clear message on their emerging tech priorities unlike last congress. 

  • Up first is a House Judiciary Subcommittee hearing centered on protecting the US’s intellectual property in the “AI arms race” against China. Subcommittee Chair Darrel Issa (R-CA) has been laser focused on the intersection of AI and IP, and this is one of his first hearings of the year to set the tone for the work to come. 

  • The House Science Committee will be holding a hearing to examine progress on US research and development of quantum, and the importance of the National Quantum Initiative for ensuring US leadership on the emerging technology. 

  • The Senate Commerce Committee is holding a highly anticipated hearing Thursday with AI industry leaders including Microsoft’s Brad Smith and OpenAI CEO Sam Altman. The hearing is expected to focus on US AI leadership and its current position in the broader AI ecosystem against China. The Administration has largely focused on the role of private industry in ensuring the US remains the global leader in AI, and this hearing is expected to largely reiterate that stance. 

3. House Takes the Lead on Crypto Legislation: Crypto legislation has made a strong entrance this congress, with both chambers tackling stablecoin regulations in separate bills before addressing other crypto rules of the road. 

  • While both the Senate Banking Committee and the House Financial Services Committee have both passed their respective stablecoin bills, the Senate faces new significant hurdles in getting its bill to the floor given Democratic pushback. 

  • While it's not a competition, both the House Agriculture and Financial Services Committees issued today a joint discussion draft for a comprehensive bill on digital asset market structure. The Committees are scheduled to have a joint hearing tomorrow to examine the framework. But there is a hitch - Financial Services Ranking Member Waters is expected to object to the hearing over President Trump’s personal crypto interests. To be determined on tomorrow’s event.

What's Happening This Week

Tech Hearings

  • The Senate Armed Services Committee holds a hearing on the nominations of Anthony J. Tata to be Defense undersecretary for personnel and readiness; and Katherine E. Sutton to be assistant Defense secretary for cyber policy - Tuesday, May 6 at 9:30 AM EST

  • The House Agriculture Committee holds a hearing on “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century” - Tuesday, May 6 at 10:00 AM EST

  • The House Armed Services Committee Cyber, Information Technology, and Innovation Subcommittee holds a hearing on "Science, Technology, and Innovation Posture" - Tuesday, May 6 at 3:30 PM EST

  • The House Judiciary Courts, Intellectual Property, Artificial Intelligence, and the Internet Subcommittee holds a hearing on "Protecting Our Edge: Trade Secrets and the Global AI Arms Race" - Wednesday, May 7 at 10:00 AM EST

  • The House Science, Space and Technology Committee holds a hearing on "From Policy to Progress: How the National Quantum Initiative Shapes U.S. Quantum Technology Leadership"- Wednesday, May 7 at 10:00 AM EST

  • The House Appropriations Homeland Security Subcommittee holds a hearing on "Oversight Hearing - The Cybersecurity and Infrastructure Security Agency” - Thursday, May 8 at 9:00 AM EST

  • The House Armed Services Cyber, Information Technologies, and Innovation Subcommittee holds a hearing on Information Technology and Artificial Intelligence Posture of the Department of Defense - Thursday, May 8 at 9:00 AM EST

  • The Senate Commerce, Science and Transportation Committee holds a hearing on "Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation" - Thursday, May 8 at 10:00 AM EST

  • The Senate Appropriations Department of Homeland Security Subcommittee holds a hearing to examine proposed budget estimates for fiscal year 2026 for the Department of Homeland Security - Thursday, May 8 at 10:00 AM EST

Tech Events

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