TThere are millions of American technological companies have invested in the currification of favor with Donald Trump He seemed to pay this week when the new administration has published a wave of directives that relaxed regulations and abandoned legal proceedings aimed at the holding of the industry. Crypto, AI and social media companies, many of which have made donations to Trump, all expect to benefit from it.
At the center of the administration movements is Elon Musk, the richest man in the world. During last week, federal agencies under the authority of the president abandoned legal fighting against his rocket company and the greatest exchange of cryptocurrency in the United States. The White House has also published a “deregulation initiative” aimed at loosening the regulations of the technological sector by empowering Doge de Musk.
Musk is the CEO of several technological companies that have been chased by federal agencies in recent years. The billionaire CEO has paid nearly $ 300 million to the president’s re -election campaign and is now in charge of the Ministry of Government Efficiency (DOGE), which is responsible for reducing federal spending and regulations.
Administration movements fall into a convivial scheme towards the technological industry and its billionaire leaders.
Coinbase said Friday that the Securities and Exchange Commission had communicated plans to reject its pursuit against the cryptocurrency scholarship. On the same day, the Ministry of Justice announced that it abandoned its discrimination file against Spacex by Musk.
Trump also reduces regulatory guarantees on artificial intelligence, which Silicon Valley CEOs have long said that are too heavy. The body responsible for testing the safety of advanced AI models is preparing for layoffs after probationary employees received an opinion on Wednesday. Two weeks ago, the White House back up a decree of Joe Biden intended to ensure the safety of the AI.
Silicon Valley a cozé in Trump
In addition to Musk, several other technological CEOs have also found the favor of Trump, including Tim Cook from Apple, Jeff Bezos from Amazon, Sundar Pichai from Google, Mark Zuckerberg de Meta, Sam Altman from Openai and Shou Zi de Tiktok . They all donated $ 1 million to the Trump inaugural Committee and had in camera with the president.
At the start of the first Trump administration, some technological companies had controversial relations with the president. They protested against its initiatives, in particular the ban on immigration from seven Muslim majority and its position on abortion. With Trump’s second time, things have changed.
“The striking image to the inauguration of so many leaders present who had taken more aggressive positions towards Trump in his first mandate show that they hope a more favorable treatment,” said Gautam Hans, law professor and director of rights Civilians and Civil Liberties Clinical in Cornell. He added that Trump’s recent actions on the technological front “reflect a litany of long -term preservatives and arguments of aggressive deregulation”.
Coinbase won a victory after giving Trump a donation
A month before the SEC lets abandon its pursuit against Coinbase, the Crypto company donated $ 1 million to the Trump inaugural fund, a decision of many technological companies and their CEOs made to comfort in Trump. The writing of the cryptographic industry has supported a large band of republican candidates, and the re -election of Trump sparked a gathering of the prices of cryptography.
“The SEC staff have in principle agreed to reject their illegal application file against Coinbase, subject to the commissioner’s approval – reforming a major wrong,” wrote Paul Grewal, the company’s legal director, in A blog post. “We have still maintained that we were right about the facts and the law, and the announcement today confirms that this case should never have been deposited in the first place. »»
The SEC continued Coinbase in 2023, alleging that the scholarship had negotiated 13 tokens which should have been registered with the SEC as titles. But the Trump administration adopts a more friendly approach to the crypto. On the campaign track, Trump said that he would be the “president of cryptography” and appointed the commissioner nominated at the crypto, Paul Atkins, in lead The dry, replacing Gary Gensler, who took a contradictory position towards industry.
The decision to withdraw prosecution against companies such as Coinbase is not unexpected. During the first weeks of the new administration, the SEC has established a cryptographic working group which, according to experts, will eventually examine and reverse the policies and cases of the previous administration.
The Public Consumer Protection Public Citizen Citizen Public Consumer Protection said that the DIA’s decision would be “positive proof that the flow of campaign expenditure in the cryptography industry has borne fruit”.
“The now abandoned trial against Coinbase involved the most basic assertion of dry authority: Coinbase cryptocurrency offers are in fact titles and must be registered and regulated as such,” said the co-president of Citizen public in a press release.
“The retirement of this basic statement is a massive gift for industry, which can only be understood in light of its massive political expenses during the last elections.”
Trump makes an order that empowers musk and the Doge
Trump signed a scanning executive decree Wednesday aimed at reducing regulations. The order, called “deregulating initiative” in a press release from the White House, echoes Musk and Doge directly, the mission declared to reduce federal spending and regulations – and could greatly benefit the technological industry.
The order “will begin the deconstruction of the authoritarian administrative state and heavily”, indicates the order. “End the federal government and restore the constitutional separation of powers.”
The ordinance dictates that Doge, as well as the director of the management and budget office, “will cancel illegal regulations” via an examination process which examines “all regulations”. The calendar to do this is 60 days. The list of “illegal regulations” is vast and includes regulations which give too much power to the congress, impose significant costs on the private parties and which hinder technological innovation.
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Silicon Valley has long complained about the regulations of the federal government, many of which aim at anti -competitive and monopolistic behavior and impose consumer safety and safety standards. Google, Apple and Meta were prosecuted by the Ministry of Justice in cases of antitrust and discrimination. And the Federal Trade Commission has brought prosecution against several of these same companies, with Amazon, Uber and Snapchat.
Some lawyers question the legality and feasibility of this new deregulation decree.
“If Trump thinks that Doge will be able to cancel the regulations under these waves of the way he tried to cancel the agencies, he will be disappointed,” said Daniel Walters, professor of law associated with Texas A & M University.
“There is a small law called the law on administrative procedure on the way.”
The law on administrative procedure obliges agencies to cancel the existing regulations through the same process as the creation of regulations, said Walters. These processes can take years and existing regulations are considered restrictive until they are finished.
AI deregulation
Administration officials have repeatedly notified their conviction that previous administrations have outlying the technological industry and created obstacles to innovation, in particular with regard to AI. Vice-President JD Vance launched a speech at the World Summit in AI action by emphasizing the focus of the administration on “the opportunity of AI” rather than on the “security of AI ”.
“We believe that excessive AI sector regulations could kill a transformative industry,” said Vance at the conference.
Trump has already made several movements to empty the railings around the development and use of the AI that the Biden administration has set up. Shortly after taking up his duties, Trump canceled an executive decree of the Radical AI that Biden issued to ensure that AI would be used and developed in complete safety. Trump described the “barrier to American leadership in artificial intelligence”.
Now, the non -regulatory organization responsible for testing the most powerful AI models in the industry is faced with layoffs. About 500 convations of the National Institute of Standards and Technology, which establishes safety and reliability standards for various sectors, including AI, manufacturing and cybersecurity, expect to be dismissed, in several reports . Some of these employees received verbal opinions from Wednesday, according to Bloomberg. The members of AI Safety Institute (AISI), which was created in the NIST in response to the Decree of Biden of the AI, are particularly concerned with the dismissal, According to Wired.
The elimination of the AISI would do nothing to make American companies more competitive and “undermine efforts” to ensure that AI tools are safe, according to Alexandra Reeve Givens, the CEO of Digital Rights non -profit at the Center for Democracy and Technology.
“The Safety Institute was designed to play a basic role and common sense coordinated the type of work that must occur so that the entire industry succeeds,” Givens said in a statement.
FTC threats
Although Trump has so far taken technological movements, his administration also uses his regulators to threaten the technological industry, if the CEOs of the Silicon Valley cease to be so close to the president. The new president of the Federal Trade Commission, Andrew Ferguson, went to Elon Musk’s X Thursday with a promise to continue “censorship of great technology” saying that it is “non -American” and “potentially illegal”.
He launched an official survey on the issue, which will examine the way in which technological platforms can prohibit or prohibit various users. Trump was temporarily forbidden to Twitter, Facebook and Youtube after the January 6 attack on the Capitol.
“Technological companies should not intimidate their users,” said Ferguson in a statement.