REGULATION · US
Trump administration kills AI regulation executive order; conflicting officials attempt reconciliation
The Trump administration has rescinded a Biden-era executive order aimed at regulating AI. Within the administration, some officials and AI executives are trying to salvage specific guardrails on safety and alignment, but no coherent policy has emerged.
WHY IT MATTERS
Regulatory vacuum on frontier AI safety, bias, and disclosure now lasts until 2027 at earliest. Financial institutions relying on AI for credit, trading, or compliance face heightened reputational and operational risk if models fail without guardrails. Expect state-level intervention (NY, CA).
Source: Wired · 2026-06-02