Lauren Feiner | The Verge The Verge is about technology and how it makes us feel. Founded in 2011, we offer our audience everything from breaking news to reviews to award-winning features and investigations, on our site, in video, and in podcasts. 2025-07-25T15:50:33+00:00 https://www.theverge.com/authors/lauren-feiner/rss https://platform.theverge.com/wp-content/uploads/sites/2/2025/01/verge-rss-large_80b47e.png?w=150&h=150&crop=1 Lauren Feiner Justine Calma Hayden Field Adi Robertson <![CDATA[Breaking down Trump’s big gift to the AI industry]]> https://www.theverge.com/?p=713788 2025-07-25T11:50:33-04:00 2025-07-25T10:35:40-04:00
US President Donald Trump displays an executive order, which is about AI, in Washington, DC, on July 23rd. | Photo: AFP via Getty Images

President Donald Trump’s plan to promote America’s AI dominance involves discouraging “woke AI,” slashing state and federal regulations, and laying the groundwork to rapidly expand AI development and adoption. Trump’s proposal, released on July 23rd, is a sweeping endorsement of the technology, full of guidance that ranges from specific executive actions to directions for future research.

Some of the new plan’s provisions (like promoting open-source AI) have garnered praise from organizations that are often broadly critical of Trump, but the loudest acclaim has come from tech and business groups, whose members stand to gain from fewer restrictions on AI.  “The difference between the Trump administration and Biden’s is effectively night and day,” says Patrick Hedger, director of policy at tech industry group NetChoice. “The Biden administration did everything it could to command and control the fledgling but critical sector … The Trump AI Action Plan, by contrast, is focused on asking where the government can help the private sector, but otherwise, get out of the way.”

Others are far more ambivalent. Future of Life Institute, which led an Elon Musk-backed push for an AI pause in 2023, said it was heartened to see the Trump administration acknowledge serious risks, like bioweapons or cyberattacks, could be exacerbated by AI. “However, the White House must go much further to safeguard American families, workers, and lives,” says Anthony Aguirre, FLI’s  executive director. “By continuing to rely on voluntary safety commitments from frontier AI corporations, it leaves the United States at risk of serious accidents, massive job losses, extreme concentrations of power, and the loss of human control. We know from experience that Big Tech promises alone are simply not enough.”

For now, here are the ways that Trump aims to promote AI.

‘Consider a state’s AI regulatory climate when making funding decisions’

Congress failed to pass a moratorium on states enforcing their own AI laws as part of a recent legislative package. But a version of that plan was resurrected in this document. “AI is far too important to smother in bureaucracy at this early stage, whether at the state or Federal level,” the plan says. “The Federal government should not allow AI-related Federal funding to be directed toward states with burdensome AI regulations that waste these funds, but should also not interfere with states’ rights to pass prudent laws that are not unduly restrictive to innovation.” 

To do this, it suggests federal agencies that dole out “AI-related discretionary funding” should  “limit funding if the state’s AI regulatory regimes may hinder the effectiveness of that funding or award.” It also suggests the Federal Communications Commission (FCC) “evaluate whether state AI regulations interfere with the agency’s ability to carry out its obligations and authorities under the Communications Act of 1934.”

The Trump administration also wants the Federal Trade Commission (FTC) to take a hard look at existing AI regulations and agreements to see what it can scale back. It recommends the agency reevaluate investigations launched during the Biden administration “to ensure that they do not advance theories of liability that unduly burden AI innovation,” and suggests it could throw out burdensome aspects of existing FTC agreements. Some AI-related actions taken during the Biden administration that the FTC might now reconsider include banning Rite Aid’s use of AI facial recognition that allegedly falsely identified shoplifters, and taking action against AI-related claims the agency previously found to be deceptive.

‘Our AI systems must be free from ideological bias’

Trump’s plan includes policies designed to help encode his preferred politics in the world of AI. He’s ordered a revision of the Biden-era National Institute of Standards and Technology (NIST) AI Risk Management Framework — a voluntary set of best practices for designing safe AI systems — removing “references to misinformation, Diversity, Equity, and Inclusion, and climate change.” (The words “misinformation” and “climate change” don’t actually appear in the framework, though misinformation is discussed in a supplementary file.)

In addition to that, a new executive order bans federal agencies from procuring what Trump deems “woke AI” or large language models “that sacrifice truthfulness and accuracy to ideological agendas,” including things like racial equity.

This section of the plan “seems to be motivated by a desire to control what information is available through AI tools and may propose actions that would violate the First Amendment,” says Kit Walsh, director of the Electronic Frontier Foundation (EEF). “The plan seeks to require that ‘the government only contracts with’ developers who meet the administration’s ideological criteria. While the government can choose to purchase only services that meet such criteria, it cannot require that developers refrain from also providing non-government users other services conveying other ideas.”

‘Establishing a dynamic, ‘try-first’ culture for AI’

The administration describes the slow uptake of AI tools across the economy, including in sensitive areas like healthcare, as a “bottleneck to harnessing AI’s full potential.” The plan describes this cautious approach as one fueled by “distrust or lack of understanding of the technology, a complex regulatory landscape, and a lack of clear governance and risk mitigation standards.” To promote the use of AI, the White House encourages a “‘try-first’ culture for AI across American industry.”

This includes creating domain-specific standards for adopting AI systems and measuring productivity increases, as well as regularly monitoring how US adoption of AI compares to international competitors. The White House also wants to integrate AI tools throughout the government itself, including by detailing staff with AI expertise at various agencies to other departments in need of that talent, training government employees on AI tools, and giving agencies ample access to AI models. The plan also specifically calls out the need to “aggressively adopt AI within its Armed Forces,” including by introducing AI curricula at military colleges and using AI to automate some work. 

‘Retrain and help workers thrive’

All this AI adoption will profoundly change the demand for human labor, the plan says, likely eliminating or fundamentally changing some jobs. The plan acknowledges that the government will need to help workers prepare for this transition period by retraining people for more in-demand roles in the new economy and providing tax benefits for certain AI training courses. 

On top of preparing to transition workers from traditional jobs that might be upended by AI, the plan discusses the need to train workers for the additional roles that might be created by it. Among the jobs that might be needed for this new reality are “electricians, advanced HVAC technicians, and a host of other high-paying occupations,” the plan says.

‘Create a supportive environment for open models’

The administration says it wants to “create a supportive environment for open models,” or AI models that allow users to modify the code that underpins them. Open models have certain “pros,” like being more accessible to startups and independent developers.

Groups like EFF and the Center for Democracy and Technology (CDT), which were critical of many other aspects of the plan, applauded this part. EFF’s Walsh called it a “positive proposal” to promote “the development of open models and making it possible for a wider range of people to participate in shaping AI research and development. If implemented well, this could lead to a greater diversity of viewpoints and values reflected in AI technologies, compared to a world where only the largest companies and agencies are able to develop AI.”

That said, there are also serious “cons” to the approach that the AI Action Plan didn’t seem to get into. For instance, the nature of open models makes them easier to trick and misalign for purposes like creating misinformation on a large scale, or chemical or biological weapons. It’s easier to get past built-in safeguards with such models, and it’s important to think critically about the tradeoffs before taking steps to drive open-source and open-weight model adoption at scale. 

‘Expedite environmental permitting’

Trump signed an executive order on July 23rd meant to fast track permitting for data center projects. The EO directs the commerce secretary to “launch an initiative to provide financial support” that could include loans, grants, and tax incentives for data centers and related infrastructure projects. 

Following a similar move by former President Joe Biden, Trump’s plan directs agencies to identify federal lands suitable for the “large-scale development” of data centers and power generation. The EO tells the Department of Defense to identify suitable sites on military installations and the Environmental Protection Agency (EPA) to identify polluted Superfund and Brownfield sites that could be reused for these projects. 

The Trump administration is hellbent on dismantling environmental regulations, and the EO now directs the EPA to modify rules under the Clean Air Act, Clean Water Act, and Toxic Substances Control Act to expedite permitting for data center projects.

The EO and the AI plan, similar to a Biden-era proposal, direct agencies to create “categorical exclusions” for federally supported data center projects that would exclude them from detailed environmental reviews under the National Environmental Policy Act. And they argue for using new AI tools to speed environmental assessments and applying the “Fast-41 process” to data center projects to streamline federal permitting.

The Trump administration is basically using the AI arms race as an excuse to slash environmental regulations for data centers, energy infrastructure, and computer chip factories. Last week, the administration exempted coal-fired power plants and facilities that make chemicals for semiconductor manufacturing from Biden-era air pollution regulations.

‘Navigating the complex energy landscape of the 21st century’

The plan admits that AI is a big factor “increasing pressures on the [power] grid.” Electricity demand is rising for the first time in more than a decade in the US, thanks in large part to data centers — a trend that could trigger blackouts and raise Americans’ electricity bills. Trump’s AI plan lists some much-needed fixes to stabilize the grid, including upgrading power lines and managing how much electricity consumers use when demand spikes.

But the administration is saying that the US needs to generate more electricity to power AI just as it’s stopping renewable energy growth, which is like trying to win a race in a vehicle with no front wheels. It wants to meet growing demand with fossil fuels and nuclear energy. “We will continue to reject radical climate dogma,” the plan says. It argues for keeping existing, mostly fossil-fueled power plants online for longer and limiting environmental reviews to get data centers and new power plants online faster. 

The lower cost of gas generation has been killing coal power plants for years, but now a shortage of gas turbines could stymie Trump’s plans. New nuclear technologies that tech companies are investing in for their data centers probably won’t be ready for commercial deployment until the 2030s at the earliest. Republicans, meanwhile, have passed legislation to hobble the solar and wind industries that have been the fastest-growing sources of new electricity in the US. 

‘Prioritize fundamental advancements in AI interpretability’

The Trump administration accurately notes that while developers and engineers know how today’s advanced AI models work in a big-picture way, they “often cannot explain why a model produced a specific output. This can make it hard to predict the behavior of any specific AI system.” It’s aiming to fix that, at least when it comes to some high-stakes use cases.

The plan states that the lack of AI explainability and predictability can lead to issues in defense, national security, and “other applications where lives are at stake,” and it aims to promote “fundamental breakthroughs on these research problems.” The plan’s recommended policy actions include launching a tech development program led by the Defense Advanced Research Projects Agency to advance AI interpretability, control systems, and security. It also said the government should prioritize fundamental advancements in such areas in its upcoming National AI R&D Strategic Plan and, perhaps most specifically, that the DOD and other agencies should coordinate an AI hackathon to allow academics to test AI systems for transparency, effectiveness, and vulnerabilities.

It’s true that explainability and unpredictability are big issues with advanced AI. Elon Musk’s xAI, which recently scored a large-scale contract with the DOD, recently struggled to stop its Grok chatbot from spouting pro-Hitler takes — so what happens in a higher-stakes situation? But the government seems unwilling to slow down while this problem is addressed. The plan states that since “AI has the potential to transform both the warfighting and back-office operations of the DOD,” the US “must aggressively adopt AI within its Armed Forces if it is to maintain its global military preeminence.” 

The plan also discusses how to better evaluate AI models for performance and reliability, like publishing guidelines for federal agencies to conduct their own AI system evaluations for compliance and other reasons. That’s something most industry leaders and activists support greatly, but it’s clear what the Trump administration has in mind will lack a lot of the elements they have been pushing for. 

Evaluations likely will focus on efficiency and operations, according to the plan, and not instances of racism, sexism, bias, and downstream harms. 

‘Give the courts and law enforcement the tools they need’

Courtrooms and AI tools mix in strange ways, from lawyers using hallucinated legal citations to an AI-generated appearance of a deceased victim. The plan says that “AI-generated media” like fake evidence “may present novel challenges to the legal system,” and it briefly recommends the Department of Justice and other agencies issue guidance on how to evaluate and deal with deepfakes in federal evidence rules.

‘Improving the financial market for compute’

Finally, the plan recommends creating new ways for the research and academic community to access AI models and compute. The way the industry works right now, many companies, and even academic institutions, can’t access or pay for the amount of compute they need on their own, and they often have to partner with hyperscalers — providers of large-scale cloud computing infrastructure, like Amazon, Google, and Microsoft — to access it. 

The plan wants to fix that issue, saying that the US “has solved this problem before with other goods through financial markets, such as spot and forward markets for commodities.” It recommends collaborating with the private sector, as well as government departments and the National Science Foundation’s National AI Research Resource pilot to “accelerate the maturation of a healthy financial market for compute.” It didn’t offer any specifics or additional plans for that. 

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Lauren Feiner <![CDATA[Paramount-Skydance merger approved after companies agree to government speech demands]]> https://www.theverge.com/?p=713587 2025-07-24T19:57:14-04:00 2025-07-24T19:57:14-04:00

The Federal Communications Commission (FCC) has approved Skydance’s $8 billion purchase of CBS-owner Paramount after the companies agreed to end diversity, equity, and inclusion (DEI) programs but feature a “diversity of viewpoints from across the political and ideological spectrum.”

In light of the Trump administration’s critiques of CBS’s alleged anti-conservative bias — including collecting a $16 million settlement over the president’s lawsuit over an allegedly deceptively edited video of then-Democratic presidential candidate Kamala Harris on 60 Minutes — the companies’ commitment to address bias in the lawsuit likely means featuring more conservative programming. Skydance agreed to employ an ombudsman for at least two years, “who will receive and evaluate any complaints of bias or other concerns involving CBS.” 

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change,” Republican FCC Chair Brendan Carr said in a statement announcing the agency’s approval. “That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.” He said the commitments “would enable CBS to operate in the public interest and focus on fair, unbiased, and fact-based coverage,” and mark “another step forward in the FCC’s efforts to eliminate invidious forms of DEI discrimination.” Carr also boasts that Skydance “reaffirms its commitment to localism as a core component of the public interest standard,” and that the approval will “unleash the investment of $1.5 billion into Paramount.”

Carr has made no secret of his distaste for news coverage he sees as disproportionately unfavorable to the right and DEI policies he believes contribute to unfair treatment. He’s opened investigations into all three major networks as well as NPR and PBS (NBCUniversal and its owner Comcast are investors in The Verge parent company Vox Media). A week ago, CBS announced it was retiring The Late Show, hosted by Trump critic and comedian Stephen Colbert. The network said it was “purely a financial decision.”

The FCC’s only remaining Democratic commissioner, Anna Gomez, dissented, writing that, “In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom … Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law.” Still, she gave Carr credit for calling a vote on the matter, rather than rubber-stamping the merger through one of the agency’s bureaus, like it did for the Verizon-Frontier merger, which similarly required an end to DEI programs.

Gomez warns that this agreement is just the canary in the coal mine. “The Paramount payout and this reckless approval have emboldened those who believe the government can—and should—abuse its power to extract financial and ideological concessions, demand favored treatment, and secure positive media coverage,” she writes. “It is a dark chapter in a long and growing record of abuse that threatens press freedom in this country. But such violations endure only when institutions choose capitulation over courage. It is time for companies, journalists, and citizens alike to stand up and speak out, because unchecked and unquestioned power has no rightful place in America.”

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Lauren Feiner <![CDATA[Trump wanted to break up Nvidia — but then its CEO won him over]]> https://www.theverge.com/?p=712753 2025-07-23T19:25:46-04:00 2025-07-23T19:25:46-04:00

Not long ago, President Donald Trump hadn’t even heard of Nvidia, the most valuable tech company in the world. But once he found out about the AI chip giant, he says, he wanted to break it up.

“Before I learned the facts of life, I said, ‘we’ll break him up,’” Trump recalled today, in a speech about his new AI Action Plan at an event hosted in Washington, DC. He recounted what seemed to be a conversation between himself and an advisor who he didn’t name, who told him it would be “very hard” to break up Nvidia:

I said, “why?” I said, “what percentage of the market does he have?”

“Sir, he has 100%,” they said. 

“Who the hell is he? What’s his name?”

“His name is Jensen Huang, Nvidia.”

I said, “What the hell is Nvidia? I’ve never heard of it before.”

He said, “you don’t want to know about it, sir.”

Trump said he backed away from breaking up Nvidia after he realized it could be counterproductive. “I figured we could go in and we could sort of break them up a little bit, get them a little competition,” Trump said. “And I found out it’s not easy in that business. I said, ‘suppose that we put the greatest minds together and they work hand-in-hand for a couple of years.’ He said, ‘no, it would take at least ten years to catch him if he ran Nvidia totally incompetently from now on.’ So I said, ‘all right, let’s go on to the next one.’” 

“And then I got to know Jensen, and now I see why,” Trump added. 

Huang successfully convinced the Trump administration to let Nvidia sell its H20 chips to China, opening a significant new avenue of revenue that the US had previously closed due to concerns it could help a US adversary advance its own AI efforts. To assuage those fears, Commerce Secretary Howard Lutnick has insisted that the chips it’s now allowing to be sold to China are only the “fourth-best” AI chips, and the idea is to get Chinese developers “addicted to the American technology stack.”

Regardless of how it plays out for US policy, the change has been a boon for Nvidia, which even before the announcement had become the first publicly traded company worth $4 trillion. Under the Biden administration, the Justice Department had reportedly been probing the company on antitrust grounds. But Trump’s apparent about-face on breaking it up means we probably shouldn’t expect a lawsuit anytime soon.

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Lauren Feiner <![CDATA[Trump unveils his plan to put AI in everything ]]> https://www.theverge.com/?p=712513 2025-07-23T13:38:34-04:00 2025-07-23T13:07:29-04:00

Ensuring AI reflects “objective truth,” slashing onerous regulations, disseminating US AI tools around the world, and fast-tracking AI infrastructure: this is all part of President Donald Trump’s vision for AI policy.

The White House unveiled its “AI Action Plan” Wednesday ahead of a scheduled appearance by the president at an event in Washington, DC. The 28-page document lays out three pillars of US AI policy in the Trump era: accelerating AI innovation, building American AI infrastructure, and leading international diplomacy and security around AI. 

Trump is expected to sign a series of related executive orders this week to help implement the plan. He’s slated to appear at an event Wednesday evening hosted by the Hill and Valley Forum and the All-In Podcast, which is co-hosted by tech investor-turned-White House AI and crypto czar David Sacks. 

Large chunks of the plan echo bipartisan rhetoric about ensuring the US maintains a leading role in the AI race and integrates the tech into its economy. But other aspects reflect the Trump administration’s push to root out diversity efforts and climate initiatives, as well as a Republican-led attempt to ban states from regulating AI. 

The plan recommends deleting “references to misinformation, Diversity, Equity, and Inclusion, and climate change” in federal risk management guidance and prohibiting the federal government from contracting with large language model (LLM) developers unless they “ensure that their systems are objective and free from top-down ideological bias” — a standard it hasn’t yet clearly defined. It says the US must “reject radical climate dogma and bureaucratic red tape” to win the AI race.

The Trump administration wants to create a “‘try-first’ culture for AI”

It also seeks to remove state and federal regulatory hurdles for AI development, including by denying states AI-related funding if their rules “hinder the effectiveness of that funding or award,” effectively resurrecting a failed congressional AI law moratorium. The plan also suggests cutting rules that slow building data centers and semiconductor manufacturing facilities, and expanding the power grid to support “energy-intensive industries of the future.”

The Trump administration wants to create a “‘try-first’ culture for AI across American industry,” to encourage greater uptake of AI tools. It encourages the government itself to adopt AI tools, including doing so “aggressively” within the Armed Forces. As AI alters workforce demands, it seeks to “rapidly retrain and help workers thrive in an AI-driven economy.”

The administration recently lifted restrictions on Nvidia from selling some of its advanced AI chips to companies in China. But the AI Action Plan suggests it’s still contemplating some restrictions on selling US technology to foreign adversaries, by recommending the government “address gaps in semiconductor manufacturing export controls.”

The plan also discusses fostering science and research around AI development, investing in biosecurity as AI is used to find new cures for diseases, and creating the necessary legal framework to combat deepfakes.

Implementing this plan and “Winning the AI race” will ensure the country’s security, competitiveness, and economic wellbeing, according to an intro by Sacks, the president’s science and technology advisor Michael Kratsios, and Secretary of State Marco Rubio. “The opportunity that stands before us is both inspiring and humbling,” they write. “And it is ours to seize, or to lose.”

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Lauren Feiner <![CDATA[Democrats are desperately trying to revive the click-to-cancel rule]]> https://www.theverge.com/?p=711707 2025-07-22T15:59:56-04:00 2025-07-22T15:59:56-04:00

Democratic lawmakers are taking multiple routes to try to revive the Federal Trade Commission’s “click-to-cancel” rule after an appeals court blocked it on procedural grounds right before it was set to take effect.

Democrats already introduced legislation earlier this month to codify the rule, which would require subscription services to let customers cancel as easily as they signed up, through congressional vote. But now a group of lawmakers are also pressuring Republican FTC Chair Andrew Ferguson to reinstate it.

Seven Democrats led by Sen. Amy Klobuchar (D-MN) appealed to the chair in a letter shared exclusively with The Verge, urging him to revise the rule so that it can take effect. “Putting this commonsense consumer protection in place is vital to foster competition, innovation, and fairness,” wrote the lawmakers, including Sens. Chris Van Hollen (D-MD) and Ruben Gallego (D-AZ), who are also behind the click-to-cancel legislation. 

The click-to-cancel or negative option rule would have barred companies from throwing up roadblocks to ending gym memberships, streaming video subscriptions, and other services  — eliminating extra steps of talking to a live agent, for example, to cancel a subscription purchased with a click of a button. But a federal appeals court ruled this month that the rule had to be thrown out because the FTC, under former Democratic Chair Lina Khan, had deprived companies and trade groups that petitioned against the rule a fair chance to talk the agency out of it.

It’s not yet clear whether either path toward restoring it will be fruitful, given that passing bills in a deeply divided legislature is a tall task, and Ferguson alongside Republican Commissioner Melissa Holyoak voted against the rule the first time around. But Democrats’ insistence on reviving it shows they believe it to be a politically winning consumer protection issue, a position some Republicans might also come around to.

The letter’s Democratic signatories argue comments submitted on click-to-cancel show overwhelming support for the measure. “A review of more than 16,000 comments from the public made clear what should be obvious: Businesses should not be allowed to trap consumers in costly subscriptions by making it difficult to unsubscribe—costing consumers valuable time and money while stifling competition,” the lawmakers  wrote. “We urge the FTC to cure any perceived procedural defect and reissue the rule as quickly as possible to ensure consumers are protected from predatory subscription traps.”

“Businesses should not be allowed to trap consumers in costly subscriptions by making it difficult to unsubscribe”

There’s some reason for hope that the FTC could get the rule back on track, even if it might look different than last time around. In her dissenting statement on the original rule, Holyoak wrote that she might have voted differently “[h]ad political leadership at the Commission taken more time to engage with other Commissioners to refine and improve the Rule.” 

But that path forward still looks murky, especially in light of President Donald Trump’s upheaval of the FTC, an issue that’s still working its way through the courts. Trump broke Supreme Court precedent to fire the two Democratic commissioners at the agency earlier this year, removing what could be key votes for the click-to-cancel rule.

Last week, Democratic Commissioner Rebecca Kelly Slaughter, who voted for the rule the first time, returned to work at the FTC after a federal judge ruled that Trump’s attempt to fire her was unlawful. Smiling outside the FTC building on the day of her ephemeral return, Slaughter wrote on X that her first priority would be “calling a vote on restoring the Click to Cancel Rule.” But her return was short-lived, after an appeals court this week granted an emergency stay keeping her from agency work while the case plays out. (Trump also attempted to fire Democratic Commissioner Alvaro Bedoya, who later resigned his position to take another role while the case played out in court. A federal judge dismissed his claims without prejudice). 

While pushing for Ferguson to reinstate the rule at the FTC, Klobuchar is also supporting Van Hollen’s Consumer Online Payment Transparency and Integrity (Consumer OPT-IN) Act and Gallego’s Click to Cancel Consumer Protection Act, which were introduced after the appeals court blocked the FTC rule. But Klobuchar and other Democrats aren’t looking at it as an either-or proposition.

“The FTC should always be looking out for consumers and they did the right thing when they issued this rule,” Klobuchar said in a statement. “Consumers deserve protection from subscription traps and it is time for the FTC to reinstate the rule to do just that.”

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Lauren Feiner <![CDATA[Trump signs first major crypto bill, the GENIUS Act, into law]]> https://www.theverge.com/?p=710100 2025-07-18T16:05:18-04:00 2025-07-18T16:00:27-04:00

In a landmark victory for the crypto industry, President Donald Trump signed the GENIUS Act into law, establishing a regulatory framework for a type of digital currency known as stablecoins.

The GENIUS Act creates rules for entities that issue stablecoins, whose value is tied to an asset like the US dollar. Those rules govern who’s allowed to issue stablecoins, how they need to maintain reserves, what happens in the case of bankruptcy, and an obligation to prevent money laundering. 

Trump congratulated members of the crypto industry who attended the signing ceremony at the White House, including the CEOs of Coinbase and Tether. He drew a stark contrast between the Biden administration, which he called “a vicious group of people” who were “trying to crush your industry,” and himself. “I got you guys out of so much trouble,” Trump said.

“The entire crypto community, for years, you were mocked and dismissed and counted out,” Trump said. “But this signing is a massive validation of your hard work and your pioneering spirit.” He added that he chose to back crypto “at an early stage” because it will make the US dollar stronger. “And I also did it for the votes,” he said to a round of laughter from the audience, “because you did come out and vote.”

“This signing is a massive validation of your hard work and your pioneering spirit”

The bill passed through both chambers of Congress with bipartisan support, with backers saying it creates necessary safeguards for the industry and keeps the US competitive in the space. But it also saw opposition from other members on both sides. Sen. Josh Hawley (R-MO) criticized the bill as “a huge giveaway to Big Tech,” citing concerns it would incentivize companies that issue stablecoins to collect more financial data on consumers. In a speech on the Senate floor, Senate Banking Committee Ranking Member Elizabeth Warren (D-MA), said that the bill “is riddled with loopholes and contains weak safeguards for consumers, national security, and financial stability.”

Warren and other Democrats have also warned that legitimizing the stablecoin industry through the legislation could bolster a potential avenue of corruption for Trump. Trump’s family is involved in crypto firm World Liberty Financial that launched its own stablecoin, USD1. The White House has said the venture creates no conflicts for the president as his assets are in a trust managed by his kids. 

“Through his crypto businesses, President Trump has created an efficient means to trade presidential favors like tariff exemptions, pardons, and government appointments for hundreds of millions—perhaps billions—of dollars from foreign governments, from billionaires, and from large corporations,” Warren said. “This is the single greatest corruption scandal in American history and, by passing the GENIUS Act, the Senate is about to not only bless this corruption, but to actively facilitate its expansion.”

As Trump signed the GENIUS Act, he tried to steer attention to what he’s billed as “a big scandal” for his predecessor. “This is not an autopen, by the way.” Trump quipped.

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Lauren Feiner <![CDATA[One of the Democrats Trump unlawfully fired from the FTC is back]]> https://www.theverge.com/?p=710029 2025-07-18T17:09:37-04:00 2025-07-18T15:18:19-04:00
Alvaro Bedoya, then-commissioner on the Federal Trade Commission (FTC), right, and Rebecca Slaughter, commissioner at the Federal Trade Commission (FTC), left, during a House Judiciary Committee hearing in Washington, DC. Photographer: Al Drago/Bloomberg via Getty Images | Photo: Bloomberg via Getty Images

Four months after President Donald Trump defied Supreme Court precedent to remove two Democratic commissioners from the Federal Trade Commission without cause, one of those commissioners is returning to work.

US District Court Judge Loren AliKhan called the attempted firing unlawful, finding that Rebecca Kelly Slaughter “remains a rightful member of the Federal Trade Commission” and that the president can only remove her for “inefficiency, neglect of duty, or malfeasance in office.” AliKhan ordered Republican FTC Chair Andrew Ferguson to provide Slaughter with “access to any government facilities, resources, and equipment necessary for her to perform her lawful duties as an FTC Commissioner during the remainder of her term,” which ends in September 2029. 

The other Democratic commissioner, Alvaro Bedoya, formally resigned in June to seek another form of income without breaching federal ethics rules. For that reason, the judge dismissed the claims he brought in the lawsuit without prejudice, which is why only Slaughter is returning to work.  

The Trump administration pledged to appeal the ruling, with White House deputy press secretary Kush Desai writing in a statement, “The Supreme Court has repeatedly upheld the President’s constitutional authority to fire and remove executive officers who exercise his authority.”

As she returns to the FTC today, Slaughter is still likely to be out-voted on many issues with a 3-1 Republican majority. But she can still use her post to bring transparency and an alternative perspective to the agency’s actions that might not have been available otherwise. Slaughter will have access to key information about investigations that the agency is conducting on antitrust and consumer protection issues, which often includes probes of how companies are handling consumer data or marketing services to the public. When the commission holds a vote on whether or not to bring an enforcement action against a company, Slaughter can shed light on key points of disagreement or an alternative path the agency might have taken based on the facts, even when she doesn’t get her way. 


“The American public will not know what’s going wrong without minority commissioners on there”

Shortly after his attempted firing in March, Bedoya told a group of reporters on Capitol Hill that his and Slaughter’s absence from the commission could mean that some actions the agency chose not to take could be lost to history. “If there’s an action brought up to the commission, and the commissioners say no, that never becomes public,” he said. “So not only is there a pall over the mission-driven consumer protection, anti-monopoly work of this extraordinary agency, there’s also complete opacity about some of the stuff that may be about to happen. The American public will not know what’s going wrong without minority commissioners on there.” He predicted that once they were reinstated, they’d be entitled to learn about anything that had gone on in their absence besides deliberations around their own lawsuit.

Posting a selfie in front of the FTC building today, Slaughter wrote that she was “excited to be heading into the office this am!” and that her top priority is “calling a vote on restoring the Click to Cancel Rule.” The rule was recently blocked from taking effect by an appeals court due to procedural errors in its rollout under former Chair Lina Khan. The push to restore the rule is an example of something that might not happen without a minority commissioner at the agency, since Ferguson and Republican Commissioner Melissa Holyoak had voted against the rule in the first place when they themselves were in the minority, taking issue with what they saw as a rushed process.

In the time that the FTC has been devoid of minority commissioners, Ferguson has taken steps to reduce the FTC’s independence from the executive branch. The agency’s consumer protection director told staff to stop calling the FTC “independent” in legal complaints. Ferguson has backed the White House’s assertion that Trump had the authority to fire his fellow commissioners. His muted response in the face of an executive order saying the White House could “review independent regulatory agencies’ obligations for consistency with the President’s policies and priorities” has been meaningful.

Slaughter has warned that Trump’s attempt to fire her and Bedoya are an early sign of how he might treat other independent agencies that are supposed to be insulated from political turmoil. (The Federal Communications Commission’s remaining Democrat, Anna Gomez, recently told The Verge she’s not sure why Trump hasn’t attempted to fire her yet as she’s toured the country criticizing the administration, and expressed a lack of confidence that he’d nominate another Democrat to the agency.)

“The for-cause removal protections that apply to my colleagues and me at the FTC also protect other independent economic regulators like the SEC, the FDIC, and the Federal Reserve,” Slaughter said in a statement after the court ruling vindicating her.  “All these agencies were designed by Congress so that the economy wouldn’t experience whiplash every time the political winds change.”

Although Slaughter is celebrating her return to her job, the fight is unlikely to be over. Republicans — including Trump administration officials — have advocated for a reevaluation the Supreme Court precedent known as Humphrey’s Executor that prevented Trump from firing Slaughter and Bedoya in the first place. They question the authority of independent agencies and believe that the president should have more control over their remits. Recent Supreme Court rulings suggest the justices might just be willing to give Trump that kind of power.

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Lauren Feiner <![CDATA[The crypto industry got what it paid for]]> https://www.theverge.com/?p=709483 2025-07-17T19:26:34-04:00 2025-07-17T18:37:44-04:00

The crypto industry is beginning to see a return on one of its most prescient investments: Donald Trump.

On Thursday, the House of Representatives passed three bills that industry supporters believe will bring more legitimacy and predictability to the digital currency space — and that critics warn could enrich the president’s own family and hand too much power to the industry at the expense of stability in the financial system. With the summer recess looming, there’s a limited amount of time to pass two of the bills that still require a Senate vote, but one is already headed to Trump’s desk. Crypto Week, as House Republicans took to calling it, didn’t go as smoothly as hoped, with some hardline Republicans blocking a procedural step to advance the bills earlier on in the week. But after the president had “a short discussion” with them, Trump wrote on Truth Social that he was able to secure the necessary votes to move the bills forward.

That kind of sway is exactly what crypto executives — who poured tens of millions into Trump’s election, loudly proclaimed their support for him, and contributed to his inaugural fund — paid for. After a four-year struggle with the Biden administration over crypto policy, the industry is finally seeing the US government adopt policies  it’s long asked for.

“We are getting incredibly close to finally having clear rules for crypto to grow this industry in the United States of America,” Coinbase CEO Brian Armstrong wrote on X after the passage of the GENIUS and CLARITY Acts. Summer Mersinger, CEO of the crypto industry group Blockchain Association, called the GENIUS Act’s bipartisan passage “a watershed moment for digital assets in the United States.”

The industry is finally seeing the US government adopt policies it’s long asked for

The GENIUS Act was already passed by the Senate and now heads to the president’s desk to be signed into law. The bill creates a regulatory framework for stablecoins, or digital currency tied to the value of the US dollar. Bipartisan supporters see it as a positive step to create guardrails for a burgeoning industry, but some Democrats who opposed the bill fear it would help funnel new investment into an area in which Trump’s own family has a direct stake through World Liberty Financial

The other two bills, the CLARITY Act and the Anti-CBDC Surveillance State Act, still need to be approved by the Senate. The latter would prevent the Federal Reserve from issuing a central bank digital currency (CBDC), which could compete with existing digital currencies but whose skeptics think could be used for government surveillance. 

The CLARITY Act would outline rules around when digital assets could be treated as securities regulated by the Securities and Exchange Commission (SEC) or a commodity regulated by the Commodities Futures Trading Commission (CFTC). This distinction was a sore point for the crypto industry during the previous administration, to the point where previous SEC Chair Gary Gensler was lambasted as a symbolic bogeyman for all of crypto
Trump successfully courted crypto money for his campaign on the promise that he would fire Gensler, and now the industry is seeing high dividends on this investment. They’ve gone from an era in which they were embattled by independent agencies to having the president himself help get industry-favorable legislation over the finish line.

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Lauren Feiner <![CDATA[What Big Tech got out of Trump’s Big Beautiful Bill]]> https://www.theverge.com/?p=709172 2025-07-17T13:39:24-04:00 2025-07-17T13:39:24-04:00

The massive budget bill signed into law by President Donald Trump on Independence Day didn’t include everything on Big Tech’s wishlist, but the industry’s largest players stand to gain significantly from several provisions in the One Big Beautiful Bill Act

The Republican-backed legislation is best known for its tax cuts on tips, deduction caps that could primarily benefit wealthy taxpayers, restriction on healthcare coverage for low-income and disabled Americans, cuts to renewable energy incentives, and tens of billions of dollars in funding to immigration enforcement. But it also includes restored tax deductions for research and development and other items that could benefit the tech industry, among other businesses. 

In one high-profile fight, the tech industry failed to secure a moratorium on state AI laws, a proposal which had been supported by several trade groups and might have also affected a host of other state tech protections. But after months of lobbying from Congress to Mar-a-Lago, the industry will see slashed taxes and may receive new contracts from border enforcement funding, the Tech Oversight Project finds in a new report shared exclusively with The Verge. Some changes will likely benefit businesses of all sizes and sectors — while others may offer large companies in the tech industry the biggest benefits. 

Bigger R&D write-off

The budget bill essentially reverses a policy from Trump’s first term that limited how companies could write off research and development on their taxes. The 2017 Tax Cuts and Jobs Act (TCJA) forced companies to spread write-offs for domestic R&D costs across five years, rather than deducting them fully in the year they were incurred. Now, Congress is restoring the previous, more generous deduction setup, and small businesses can get retroactive tax write-offs for the last couple years when the changes — which took effect in 2022 — were in place.

In a recent report, Quartz linked the R&D deduction changes to the wave of layoffs across the industry, describing how it made it so companies could effectively only write off one-fifth of their R&D costs in the year they were incurred, rather than the full sum, making salaries for engineers and other high-skilled roles much more costly. The nonpartisan Institute on Taxation and Economic Policy (ITEP) found that in the three years in which the TCJA changes took effect, Alphabet, Amazon, Apple, Meta, and Tesla saw their tax bills rise a collective $75 billion as a result.

“The loss of full R&D expensing disincentivizes firms from significantly increasing their R&D investments”

So unsurprisingly, tech-backed groups like the Information Technology and Innovation Foundation (ITIF) and the Business Software Alliance (BSA) pushed to revert the rule. “The loss of full R&D expensing disincentivizes firms from significantly increasing their R&D investments because the cost of those investments has risen,” ITIF wrote in a blog post earlier this year.

Maintaining a lower corporate tax rate

Conversely, business groups successfully pleaded with lawmakers to keep a different change from the TCJA: a massive reduction in the corporate tax rate from 35 percent to 21 percent. In a letter to lawmakers last year, tech-backed Information Technology Industry Council (ITI) told lawmakers that the reduction had brought the US in line with peer countries, and provided US companies “a more level playing field against their international competitors,” which the nonprofit Tax Foundation found helped boost US investment. Democrats who have opposed the lower tax rates have framed it as a handout to corporate America.

Extending lower international tax rates

The new budget law also blocks a scheduled increase in the effective tax rates on things like the money companies make abroad based on US-based patents or other intangible assets.

These kinds of taxes — the base erosion and anti-abuse tax (BEAT), global intangible low-taxed income tax (GILTI), and the foreign-derived intangible income tax (FDII) — are generally meant to prevent shifty accounting practices like moving assets to a foreign subsidiary. Before the One Big Beautiful Bill Act passed, the effectively lowered rates through these three policies were set to expire at the end of 2025.

The tech industry argued protecting those low rates would keep US companies competitive with other countries, like France and the UK. “Several other nations already offer IP incentives,” ITI told lawmakers in an October letter. “It is essential that the FDII rate remains as low as possible.”

“The tax break disproportionately benefits large corporations with significant intellectual property portfolios”

But groups like the nonpartisan Financial Accountability and Corporate Transparency (FACT) Coalition and ITEP see lower rates for taxes like the FDII as a giveaway to the biggest players in the tech industry, which deal heavily in intangible assets like patents and trademarks.

“The tax break disproportionately benefits large corporations with significant intellectual property portfolios while doing little for smaller firms that lack similar assets,” ITEP wrote in a blog post last year, where it found that Google parent Alphabet reported over $11 billion in tax benefits from 2018 to 2023 as a result of the FDII.

Border protection funding could flow to tech

Alongside a significant budget increase for Customs and Border Protection (CBP) and other immigration-related funding, the law includes about $6 billion for border technologies, including surveillance systems. That money could flow to several large tech firms already engaged in the space. 

Those include Peter Thiel-founded data company Palantir, which currently has a $30 million contract with Immigration and Customs Enforcement (ICE) to build “ImmigrationOS” to create “near real-time visibility into instances of self-deportation.” Thiel-backed Anduril also stands to gain if the agency expands infrastructure like the surveillance towers it already supplies to the government. MIT Technology Review reported in 2018 that Amazon Web Services hosted Department of Homeland Security (DHS) databases related to immigration, including a deep pool of biometric data.

Other tax-saving adjustments

Tech companies and other businesses will also benefit from changes in how business interest deductions are calculated, and a permanent extension of rules allowing companies to take a full deduction of certain equipment expenses. House Democrats have previously called this kind of tactic a “Tax Scam,” writing, “Two-thirds of the benefits go to corporations making over $250 million in revenue, and from 2018 through 2021, about two dozen of the largest corporations received roughly $50 billion in tax breaks through this provision.”

Some of the tax changes in the bill will benefit smaller firms and businesses across many different industries. But large tech companies are particularly well positioned to benefit from changes in how foreign profits on intellectual property are taxed and fuller R&D write-offs. After months of cozying up to the Trump administration with little to show for it, it looks like the largest players in the industry have finally notched some wins.

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Lauren Feiner <![CDATA[US government announces $200 million Grok contract a week after ‘MechaHitler’ incident]]> https://www.theverge.com/?p=706855 2025-07-14T14:44:46-04:00 2025-07-14T13:58:16-04:00

A week after Elon Musk’s Grok dubbed itself “MechaHitler” and spewed antisemitic stereotypes, the US government has announced a new contract granting the chatbot’s creator, xAI, up to $200 million to modernize the Defense Department.

xAI is one of several leading AI companies to receive the award, alongside Anthropic, Google, and OpenAI. But the timing of the announcement is striking given Grok’s recent high-profile spiral, which drew congressional ire and public pushback. The use of technology, and especially AI, in the defense space has long been a controversial topic even within the tech industry, and Musk’s prior involvement in slashing federal government contracts through his work at the Department of Government Efficiency (DOGE) still raises questions about potential conflicts — though his relationship with President Donald Trump has more recently soured, and Trump’s administration has claimed Musk would step back from any potential conflicts while at DOGE.

The contract announcement from the Chief Digital and Artificial Intelligence Office (CDAO) is light on details, but says the deals will help the DoD “develop agentic AI workflows across a variety of mission areas.” Alongside the contract award, xAI announced “Grok for Government,” which it says will supply “frontier AI products” to the US. In addition to the DoD contract, xAI says other federal agencies will now be able to purchase its tools via the General Services Administration (GSA) schedule. The company plans to work on new products for government customers, like custom models focused on national security, applications for healthcare and science use cases, and models accessible in classified environments.

Days after changes to Grok sent it off the rails (saying that if “calling out radicals cheering dead kids makes me ‘literally Hitler,’ then pass the mustache,” and referencing a “pattern-noticing meme” where “folks with surnames like ‘Steinberg’ (often Jewish) keep popping up in extreme leftist activism, especially the anti-white variety”), the company apologized for “the horrific behavior that many experienced.” It said the update responsible for Grok’s tirades was active for 16 hours but had been deprecated. Instructions given to the chatbot, like to not be “afraid to offend people who are politically correct,” had the “undesired” effect of leading it to “ignore its core values in certain circumstances in order to make the response engaging to the user” — even if that meant “producing responses containing unethical or controversial opinions.”

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