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Microsoft and Amazon, together on housing: Tech giants find common ground in push for policy changes

Microsoft and Amazon published a joint op-ed and full-page ad in The Seattle Times urging Washington lawmakers to address the state’s housing crisis. (GeekWire Illustration)

They’re rivals in the cloud, and competitors for customers and talent. But Microsoft and Amazon are on the same page when it comes to Washington state’s housing crisis — literally, in the case of an op-ed Friday and full-page ad last Sunday in The Seattle Times.

The Seattle region “faces a housing emergency that threatens our state’s quality of life, health and economic competitiveness,” write Brad Smith, Microsoft’s vice chair and president, and David Zapolsky, Amazon’s chief global affairs and legal officer.

It was an unusual joint byline, to say the least, but it reflected the similar big-picture goals of their separate housing initiatives. 

Combined, the two companies have committed $1.6 billion to preserve and build more than 26,000 affordable homes in the region. But the executives say even that isn’t enough, framing the problem as a supply issue that requires building “more homes of all kinds.”

They’re backing several bills in the current legislative session, including SB 6026, which would allow residential development on commercial land like strip malls and big-box stores. They also praise Gov. Bob Ferguson’s proposed $225 million in bonds for the state Housing Trust Fund.

“Going forward, legislators must commit to a simple test: If a policy makes housing more costly or takes longer to build, don’t pass it. Consider an alternative,” they write. “Enact policies that pencil in today’s market, not aspirational measures that might work down the line.”

They warn that other states are moving faster to attract developers. “Capital is fluid,” they write. “Banks, investors and lenders are going where they can make predictable returns.”

The joint push comes after Microsoft released a report last week outlining lessons learned from its housing investments. Read our earlier coverage for more details.

Choosing the Best Cryptocurrency Exchange Development Company: Why ITIO.in Leads the Way

Cryptocurrency exchanges are the backbone of the digital asset economy. They enable users to buy, sell, and trade cryptocurrencies securely while supporting liquidity, price discovery, and market growth.

As the crypto market continues to mature, businesses entering this space or scaling existing platforms must make one critical decision early on:

Choosing the right cryptocurrency exchange development company.

Image is created by ChatGPT

The wrong partner can lead to security gaps, scalability issues, regulatory trouble, and delayed launches. The right one accelerates time-to-market, ensures compliance, and builds long-term competitive advantage.

This guide explores what to look for in a crypto exchange development company and why ITIO Innovex is a preferred choice for businesses worldwide.

Understanding Cryptocurrency Exchange Development Services

Cryptocurrency exchange development services involve building, customizing, and deploying secure platforms that allow users to trade digital assets efficiently.

These services typically include:

Core Features of Cryptocurrency Exchange Development

1. Scalable Platform Architecture

A well-designed exchange must handle high transaction volumes while maintaining performance, uptime, and data integrity. Scalability is critical for future growth.

2. User Interface (UI) & User Experience (UX)

An intuitive, trader-friendly interface improves adoption, reduces friction, and enhances retention especially for first-time users.

3. High-Performance Trading Engine

The trading engine is the heart of the exchange. It must support:

  • Fast order matching
  • Multiple order types
  • Real-time price updates
  • High concurrency

Security & Compliance: Non-Negotiables in Crypto Exchange Development

1. Advanced Security Measures

A reliable exchange integrates:

  • Multi-factor authentication (MFA)
  • End-to-end encryption
  • Cold and hot wallet architecture
  • DDoS protection and monitoring

2. Regulatory Compliance

Adherence to global standards such as:

  • AML (Anti-Money Laundering)
  • KYC (Know Your Customer)

is essential for legal operation and long-term trust.

🔔 Thinking of Launching a Crypto Exchange? Pause Here

Before investing heavily, a short technical review can save months of rework and costly mistakes.

👉 DM us directly or book a free consultation with ITIO Innovex
🌐 https://itio.in/
📩 Message us on LinkedIn or request a callback

https://cal.com/alok01/30min

No sales pressure- just clarity.

Additional Cryptocurrency Exchange Development Services

  • Wallet Integration: Secure hot and cold wallet implementation
  • API Integration: Liquidity providers, algorithmic trading, third-party tools
  • Multi-Currency & Multi-Pair Support
  • Admin Dashboards & Risk Management Tools

How to Choose the Best Cryptocurrency Exchange Development Company

When evaluating development partners, consider the following critical factors:

Industry Experience & Reputation

Choose a company with a proven track record in blockchain and crypto exchange development, backed by real-world deployments.

Customization & Scalability

Your exchange should evolve with market demands. A flexible architecture enables feature expansion and regional adaptation.

Security & Compliance Focus

Security breaches can destroy trust overnight. Your development partner must prioritize security and regulatory readiness from day one.

Technology Stack & Features

Ensure access to:

  • High-performance trading engines
  • Liquidity management solutions
  • Support for multiple cryptocurrencies and networks

Support & Maintenance

24/7 technical support and proactive maintenance are essential for uninterrupted operations.

Why Businesses Choose ITIO for Cryptocurrency Exchange Development

ITIO Innovex stands out as a trusted cryptocurrency exchange development company delivering secure, scalable, and fully customized solutions.

Proven Expertise

With deep experience in blockchain and fintech, ITIO has delivered exchange platforms across diverse business models and global markets.

Customization & Innovation

Every exchange is tailored to your branding, workflows, and growth strategy no rigid templates, no limitations.

Enterprise-Grade Security & Compliance

ITIO integrates advanced encryption, secure wallet systems, and AML/KYC compliance to protect user funds and platform integrity.

Global Reach & Market Readiness

Support for:

  • Multi-currency trading
  • Global payment systems
  • Region-specific compliance requirements

End-to-End Technical Support

From ideation to deployment and ongoing optimization, ITIO’s blockchain experts ensure your exchange operates smoothly and scales confidently.

🚀 Ready to Build or Upgrade Your Crypto Exchange?

Whether you’re launching a new exchange or enhancing an existing one, the right technology partner makes all the difference.

👉 Visit: https://itio.in/
📩 DM us for a quick discussion
📞 Request a callback to explore your exchange strategy

https://cal.com/alok01/30min

Let’s build a secure, scalable, and future-ready crypto trading platform together.

Conclusion

Choosing the best cryptocurrency exchange development company is a strategic decision that directly impacts security, scalability, and long-term success.

By evaluating experience, customization capabilities, compliance readiness, and technical support, businesses can avoid costly missteps. ITIO Innovex delivers all of this making it a reliable partner for cryptocurrency exchange development in today’s fast-evolving digital asset landscape.


Choosing the Best Cryptocurrency Exchange Development Company: Why ITIO.in Leads the Way was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

How to Set Up a Crypto Exchange in 2026

By: lois

Cryptocurrency exchanges continue to be one of the most profitable segments of the digital asset economy. The combination of market maturity, institutional adoption, and regulatory clarity has made exchange platforms viable fintech products for startups, brokerage firms, and enterprise operators.

This guide explains the full process of launching a crypto exchange in 2026— from infrastructure and compliance to liquidity and go-to-market strategy.

1. Define Your Exchange Model

The first step is choosing your platform type. Common models include:

  • Centralized Exchanges (CEX) — spot, margin, futures, leverage
  • P2P Exchanges — peer-matching with escrow
  • OTC Desks — large block trade execution
  • Derivatives Exchanges — perpetuals, options, futures
  • Hybrid Exchanges — on-chain settlement + centralized order matching

Each model influences regulatory scope, liquidity structure, and risk requirements.

2. Choose the Right Development Strategy

There are three primary development routes:

A. Custom Development From Scratch

  • Fully customizable
  • 10–18 months build cycle
  • Highest CAPEX (typically $300K — $1M+)

B. White-Label Exchange Solutions

  • Modular ready-made infrastructure
  • Fraction of the development time
  • Ideal for fast deployment and MVP strategies

C. Pre-Built Exchange Scripts

  • Fastest deployment model
  • Ideal for startups and regional exchanges
  • Lower cost barrier

A good breakdown of how modern exchanges like Binance are engineered is detailed in How to Build a Crypto Exchange Like Binance

3. Core Platform Components

A functional crypto exchange requires several mission-critical layers:

Trading Engine

  • Order matching
  • Order book management
  • Market/limit/stop orders
  • TradingView charting (highly preferred)

Wallet + Custody Layer

  • Multi-asset support (BTC, ETH, USDT, etc.)
  • Hot/cold wallet separation
  • Fiat on/off ramp integration
  • Optional multi-signature custody

Security Protection

Modern security stack includes:

  • DDoS mitigation
  • MFA/2FA authentication
  • Anti-phishing controls
  • Withdrawal whitelisting
  • Custodial signing layers

Compliance & Monitoring

Regulations in 2026 mandate:

  • KYC/KYB onboarding
  • AML/CTF monitoring
  • Travel Rule compliance
  • Risk scoring & sanctions screening

4. Licensing & Jurisdiction Strategy

Crypto licensing remains geography-dependent. Popular operational jurisdictions include:

  • Singapore
  • Lithuania
  • Estonia
  • UAE
  • Malta
  • Hong Kong

Regulators now separate permissions for:
✔ Spot trading
✔ Custody
✔ Derivatives
✔ Brokerage
✔ OTC operations

Early legal consultation is recommended to ensure alignment with regulatory frameworks.

5. Infrastructure & Deployment Architecture

A production-grade exchange architecture typically includes:

  • Web + Mobile Frontend
  • High-performance Matching Engine
  • Wallet & Custodial Layer
  • Compliance Admin Console
  • Liquidity Routing Layer
  • Database + Cloud Stack
  • Monitoring & Security Layer
  • APIs for institutions & partners

AWS, Google Cloud, and bare-metal environments are standard depending on latency requirements.

6. Liquidity Acquisition Strategy

Liquidity is essential for trader confidence. Primary approaches include:

✔ Market maker partnerships
✔ Aggregated liquidity providers
✔ Shared order book feeds
✔ OTC liquidity pools
✔ Institutional routing APIs

Liquidity directly affects spreads, slippage, and execution quality.

7. Audit, Testing & Certification

Before production deployment, mandatory testing phases include:

  • Functional testing
  • Load & stress simulations
  • Wallet audit + reconciliation checks
  • Latency and throughput benchmarking
  • Regulatory compliance simulations
  • Security & penetration testing

Smart contracts (if included) require independent code audits.

8. Launch Strategy & Market Expansion

After technical launch comes adoption. Common go-to-market channels include:

  • Referral & affiliate programs
  • KOL + influencer activation
  • Educational campaigns
  • Token listings & market incentives
  • Regional institutional onboarding
  • Community management & multilingual support

Sustainable exchanges focus on both liquidity growth and user trust.

9. Cost Structure (2026 Estimates)

Cost varies by build strategy, licensing region, and technical scope.

Category

Estimated Range

White-label/software deployment

$25K — $120K

Full custom build

$300K — $1M+

Compliance & licensing

$30K — $500K+

Liquidity services

$10K — $80K/month

Infrastructure

$5K — $30K/month

Marketing

Variable

A deeper analysis is available in Cost to Build a Crypto Exchange Platform

Final Perspective

Building a crypto exchange in 2026 requires mastery across:

✔ Fintech architecture
✔ Regulatory compliance
✔ Security engineering
✔ Liquidity provisioning
✔ Market strategy

For organizations seeking reduced time-to-market, modern Cryptocurrency Exchange Script solutions provide pre-built trading engines, compliance modules, wallet systems, and operator dashboards.


How to Set Up a Crypto Exchange in 2026 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Seattle’s ORCA transit system gets major tech upgrade with new ‘Tap to Pay’ feature

(Photo via ORCA presentation)

One of the more seamless aspects on a recent trip to Japan was being able to simply “tap” my iPhone to pay for subway rides in Tokyo. That frictionless transit payment capability, common in many major cities worldwide, isn’t available in Seattle. But that’s about to change.

Seattle’s ORCA transit system is rolling out an upgrade that will let riders pay fares by tapping their credit card or smartphone — no dedicated ORCA card required.

The new “Tap to Pay” feature will let riders across the Seattle region use Visa, Mastercard, Discover, or American Express cards, as well as mobile wallets such as Apple Pay, Google Pay, and Samsung Pay.

A soft launch is scheduled to begin Feb. 2 on the G Line, a bus rapid transit route, before expanding system-wide later in February — in advance of this summer’s World Cup in Seattle, as well as the debut of the new light rail line across Lake Washington connecting the region’s tech hubs.

The Tap to Pay rollout was formally briefed to the ORCA Joint Board during its meeting this week.

The technical upgrade is aimed at making transit easier for occasional riders, tourists, and anyone who doesn’t already carry an ORCA card — while modernizing fare payment across the region’s patchwork of transit agencies.

ORCA’s operations team worked with German tech company Init to implement Visa’s Mass Transit Transaction (MTT) payment model, which allows ORCA fare readers to function as point-of-sale devices capable of securely processing contactless credit card payments in real time.

During the soft-launch phase, riders who tap a personal credit or debit card will be charged a flat $3 adult fare and won’t be able to transfer to other transit services outside the G Line. Once the feature launches across the full ORCA system, transfers will work the same way they do today for ORCA card users, including the standard two-hour transfer window across most participating agencies, according to ORCA officials.

The system will support one rider per card and adult fares only, meaning reduced-fare programs such as ORCA LIFT, Senior, Disabled, and Youth cards won’t be available through Tap to Pay.

Fare inspectors will be able to validate contactless payments by asking riders to show whatever card they used to pay.

In a statement to GeekWire, ORCA officials emphasized that the new payment option is additive, not a replacement. Riders who receive employer-subsidized ORCA cards or rely on discounted fares are encouraged to continue using traditional ORCA cards. Cash and physical tickets will still be accepted.

Tap to Pay also won’t be available on every service. The feature will not initially work on Washington State Ferries, the Seattle Monorail, Community Transit DART, ZIP, or Pierce Transit Runner, according to board presentation slides.

Some users on Reddit this week complained about needing to remove their physical ORCA card from their wallet to avoid getting a credit card charge when tapping at a reader.

Notably, using an ORCA card inside Apple Wallet is a separate feature and is not part of this launch. ORCA officials said they remain committed to mobile payment options but declined to share additional details or timelines. ORCA launched a Google Wallet feature for Android users in 2024.

  • Side note: Apple Wallet has a feature called Express Mode that lets transit riders pay for fares without waking or unlocking their device.
  • And for those who want to purchase tickets via an app: Transit GO allows iOS and Android users to pay fares on King Country Metro buses, Sound Transit trains, and other regional transit services using in-app ticketing.

Demand for Intel's processors is apparently there, but the supply is not

Intel reported its earnings for the fourth quarter of 2025 yesterday, and the news both for the quarter and for the year was mixed: year-over-year revenue was down nearly imperceptibly, from $53.1 billion to $52.9 billion, while revenue for the quarter was down about four percent, from $14.3 billion last year to $13.7 billion this year. (That number was, nevertheless, on the high end of Intel's guidance for the quarter, which ranged from $12.8 to $13.8 billion.)

Diving deeper into the numbers makes it clear exactly where money is being made and lost: Intel's data center and AI products were up 9 percent for the quarter and 5 percent for the year, while its client computing group (which sells Core processors, Arc GPUs, and other consumer products) was down 7 percent for the quarter and 3 percent for the year.

That knowledge makes it slightly easier to understand the bind that company executives talked about on Intel's earnings call (as transcribed by Investing.com). In short, Intel is having trouble making (and buying) enough chips to meet demand, and it makes more sense to allocate the chips it can make to the divisions that are actually making money—which means that we could see shortages of or higher prices for consumer processors, just as Intel is gearing up to launch the promising Core Ultra Series 3 processors (codenamed Panther Lake).

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Telly’s "free" ad-based TVs make notable revenue—when they’re actually delivered

Telly, a company that accepts advertising data instead of cash for its TVs, has reportedly had a hard time getting its “free” TVs into people’s homes.

Telly debuted in May 2023. Its dual-screen design can show ads, even when people aren't watching. Although the smaller, secondary screen can be used for more helpful applications, like showing the weather or sports scores, its primary purpose is to serve as a billboard south of the 55-inch primary display. Owners cannot disable tracking or cover up the secondary screen (or they have to pay for the TV, which Telly claims is worth $1,000), and they must fill out a lengthy, detailed survey to get one.

When it debuted its TV, Telly said it expected to ship 500,000 devices that summer. In June 2023, the startup said 250,000 people signed up to get a Telly. In a 2024 press release, Telly said that it planned to ship “millions more in 2024.”

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Revolut Drops US Bank Merger Plan, Will Pursue Standalone License — Could This Speed Up Its Crypto Expansion?

Fintech unicorn Crypto-friendly Revolut is dropping its planned acquisition of an American bank in favor of an independent banking license on its way to expand in the US market, the Financial Times reported on Friday.

The report referred to individuals who are knowledgeable of the issue that Revolut has been negotiating with authorities in the U.S. regarding submitting an application to obtain a bank license via the Office of the Comptroller of the Currency (OCC).

The shift comes as regulatory attitudes in Washington soften toward fintechs and crypto firms.

Revolut Points to Softer U.S. Regulation as It Adjusts Expansion Plans

The UK-based fintech, valued at about $75 billion following a November share sale, had spent much of 2025 exploring the purchase of a nationally chartered US bank.

An acquisition would have allowed Revolut to bypass the lengthy process of applying for a banking charter from scratch and immediately gain the ability to lend across all 50 states.

As recently as July, executives believed this approach would be the quickest way to scale operations in the US.

🏦 @RevolutApp may buy a US bank with a national charter to fast-track its American expansion and bypass the lengthy process of obtaining its own licence.#Revolut #Fintechhttps://t.co/xeDYK3miuI

— Cryptonews.com (@cryptonews) July 30, 2025

This perception has already changed, as the company is currently gambling that the approval process can be completed faster in the Trump administration since the regulatory environment has become a lot lighter than it was in the past few years.

Revolut admitted that the US is the key to its long-term growth strategy and emphasized that it wanted to have a bank in the country but noted that no final decision has been made yet and plans may change.

Revolut is “actively working with the regulator to launch the [UK] bank this year. That’s our ambition – that we’re going to launch the bank this year,” said Sid Jajodia, Revolut's CBO

Revolut “ask” regulators to be faster at making decisions.

“Anything regulators can do to… https://t.co/6AZl3CMTax pic.twitter.com/GR1J9dAbQ2

— Max Karpis (@maxkarpis) September 24, 2025

Internally, the rethink is based on fears of the purchase of a community bank being problematic, such as the necessity to use physical branches and a more complicated approval procedure for any changes in ownership.

De novo license application, which has traditionally been slow, is now considered more predictable (and consistent with the Revolut digital-first model).

National Trust Charters Emerge as Key Path for Crypto and Fintech Firms

The relocation will put Revolut on a list of increasingly popular fintech and crypto-native companies that are pursuing national charters.

The OCC itself has received approximately 13 new bank and trust license applications in 2025 alone, which is close to the number of the past four years combined.

The regulator, in December, gave conditional approval to five crypto-based companies to become national trust banks, as well as BitGo, Fidelity Digital Assets, and Paxos, to turn current state licenses into national ones.

✅ The OCC has conditionally approved five crypto firms, including @Circle and @Ripple, to launch national trust banks.#Ripple #Circlehttps://t.co/wCeTNrhOQZ

— Cryptonews.com (@cryptonews) December 13, 2025

The US banking license would provide Revolut with greater access to the dollar clearing, custody, and compliance infrastructure, which could be valuable to its stablecoin and crypto offerings at a time when federal oversight is becoming the selling point to both institutional and retail customers.

Although national trust charters prohibit taking deposits or lending, they do provide regulatory visibility that a number of crypto companies have long been craving.

Revolut Strengthens Role as Bridge Between Banks and Crypto

Notably, Revolut has gradually developed its crypto service and established itself as a gateway between conventional finance and digital assets.

In October, the company eliminated all fees and spreads on the conversions of the US dollar into major stablecoins USDC and USDT.

🚀 Revolut launches zero-fee stablecoin swaps for its 65 million users as crypto trading drives 298% revenue growth in its wealth division.#Revolut #Stablecoinhttps://t.co/rFY9zImV4j

— Cryptonews.com (@cryptonews) October 31, 2025

The volume of stablecoin payments on the platform is projected to have increased by 156% in 2025 to approximately 10.5 billion due to daily payment transactions and not because of speculative trading.

Additionally, Revolut has also increased its global growth, gaining banking licenses in Colombia and Mexico, a crypto regulatory license in Cyprus, and more than 1 billion investments in France by 2028.

It is also said to consider a dual listing in London and New York, the move that would further establish its position as one of the most valuable fintechs in the world.

The post Revolut Drops US Bank Merger Plan, Will Pursue Standalone License — Could This Speed Up Its Crypto Expansion? appeared first on Cryptonews.

Big Banks Go Stablecoins: Capital One Buys Brex For $5.15 Billion

Reports say Capital One will buy stablecoin fintech Brex for $5.15 billion in a deal that mixes cash and stock. According to the bank’s release, roughly half of the price will be paid in cash and the other half in Capital One stock.

Regulators must still sign off. The two companies expect the transaction to finish by mid-2026, though that timing could shift if approvals take longer.

Brex Brings Cards, Software — And Stablecoin Plans

Brex began as a corporate card and expense tool for startups and has added services for larger firms.

Reports note the company moved quickly into payment tech last year when it announced plans to offer native stablecoin payments, letting customers send and accept dollar-pegged tokens with automatic conversion back into USD balances.

That bit of tech is a major part of why the deal matters to a bank that wants faster settlement options.

A Mix Of Old And New

This is not just about software. It is also a play for customers. Brex runs business accounts, serves big names in tech, and has built a set of tools that many businesses use daily.

Some of those clients moved business deposits to Brex after the 2023 banking turmoil, and those relationships are part of the package Capital One is buying.

The price tag looks smaller than Brex’s peak private valuation years ago, which shows how venture valuations have reset across the sector.

Why This Matters For Payments

Banks have been testing token-based rails and faster settlement for a while. By folding Brex into its operations, Capital One gains a ready platform that already experiments with stablecoin rails.

Real-time settlement for businesses can lower friction and could cut the waiting time for funds to clear. At the same time, regulators in the US and abroad are paying closer attention to token projects, so the new setup will run under tighter scrutiny.

Source: Coingecko The Growing Stablecoin Market

Stablecoins have drawn growing attention across traditional finance after Congress approved major rules for the tokens last year.

Based on data from Coingecko, the total value of stablecoins has climbed over 18% to an all-time high of $315 billion since the GENIUS Act was passed in July 2025. USDT takes the lion share of the overall stablecoin market.

Leadership And Market Reaction

Reports note that Pedro Franceschi, Brex’s CEO, will continue to lead the unit after the sale, now inside Capital One.

Investors reacted calmly overall; Capital One’s shares dipped early but were supported by robust quarterly results announced at the same time. That earnings strength helped soften any sharp market moves.

Featured image from YouHodler, chart from TradingView

America’s coming war over AI regulation

MIT Technology Review’s What’s Next series looks across industries, trends, and technologies to give you a first look at the future. You can read the rest of them here.

In the final weeks of 2025, the battle over regulating artificial intelligence in the US reached a boiling point. On December 11, after Congress failed twice to pass a law banning state AI laws, President Donald Trump signed a sweeping executive order seeking to handcuff states from regulating the booming industry. Instead, he vowed to work with Congress to establish a “minimally burdensome” national AI policy, one that would position the US to win the global AI race. The move marked a qualified victory for tech titans, who have been marshaling multimillion-dollar war chests to oppose AI regulations, arguing that a patchwork of state laws would stifle innovation.

In 2026, the battleground will shift to the courts. While some states might back down from passing AI laws, others will charge ahead, buoyed by mounting public pressure to protect children from chatbots and rein in power-hungry data centers. Meanwhile, dueling super PACs bankrolled by tech moguls and AI-safety advocates will pour tens of millions into congressional and state elections to seat lawmakers who champion their competing visions for AI regulation. 

Trump’s executive order directs the Department of Justice to establish a task force that sues states whose AI laws clash with his vision for light-touch regulation. It also directs the Department of Commerce to starve states of federal broadband funding if their AI laws are “onerous.” In practice, the order may target a handful of laws in Democratic states, says James Grimmelmann, a law professor at Cornell Law School. “The executive order will be used to challenge a smaller number of provisions, mostly relating to transparency and bias in AI, which tend to be more liberal issues,” Grimmelmann says.

For now, many states aren’t flinching. On December 19, New York’s governor, Kathy Hochul, signed the Responsible AI Safety and Education (RAISE) Act, a landmark law requiring AI companies to publish the protocols used to ensure the safe development of their AI models and report critical safety incidents. On January 1, California debuted the nation’s first frontier AI safety law, SB 53—which the RAISE Act was modeled on—aimed at preventing catastrophic harms such as biological weapons or cyberattacks. While both laws were watered down from earlier iterations to survive bruising industry lobbying, they struck a rare, if fragile, compromise between tech giants and AI safety advocates.

If Trump targets these hard-won laws, Democratic states like California and New York will likely take the fight to court. Republican states like Florida with vocal champions for AI regulation might follow suit. Trump could face an uphill battle. “The Trump administration is stretching itself thin with some of its attempts to effectively preempt [legislation] via executive action,” says Margot Kaminski, a law professor at the University of Colorado Law School. “It’s on thin ice.”

But Republican states that are anxious to stay off Trump’s radar or can’t afford to lose federal broadband funding for their sprawling rural communities might retreat from passing or enforcing AI laws. Win or lose in court, the chaos and uncertainty could chill state lawmaking. Paradoxically, the Democratic states that Trump wants to rein in—armed with big budgets and emboldened by the optics of battling the administration—may be the least likely to budge.

In lieu of state laws, Trump promises to create a federal AI policy with Congress. But the gridlocked and polarized body won’t be delivering a bill this year. In July, the Senate killed a moratorium on state AI laws that had been inserted into a tax bill, and in November, the House scrapped an encore attempt in a defense bill. In fact, Trump’s bid to strong-arm Congress with an executive order may sour any appetite for a bipartisan deal. 

The executive order “has made it harder to pass responsible AI policy by hardening a lot of positions, making it a much more partisan issue,” says Brad Carson, a former Democratic congressman from Oklahoma who is building a network of super PACs backing candidates who support AI regulation. “It hardened Democrats and created incredible fault lines among Republicans,” he says. 

While AI accelerationists in Trump’s orbit—AI and crypto czar David Sacks among them—champion deregulation, populist MAGA firebrands like Steve Bannon warn of rogue superintelligence and mass unemployment. In response to Trump’s executive order, Republican state attorneys general signed a bipartisan letter urging the FCC not to supersede state AI laws.

With Americans increasingly anxious about how AI could harm mental health, jobs, and the environment, public demand for regulation is growing. If Congress stays paralyzed, states will be the only ones acting to keep the AI industry in check. In 2025, state legislators introduced more than 1,000 AI bills, and nearly 40 states enacted over 100 laws, according to the National Conference of State Legislatures.

Efforts to protect children from chatbots may inspire rare consensus. On January 7, Google and Character Technologies, a startup behind the companion chatbot Character.AI, settled several lawsuits with families of teenagers who killed themselves after interacting with the bot. Just a day later, the Kentucky attorney general sued Character Technologies, alleging that the chatbots drove children to suicide and other forms of self-harm. OpenAI and Meta face a barrage of similar suits. Expect more to pile up this year. Without AI laws on the books, it remains to be seen how product liability laws and free speech doctrines apply to these novel dangers. “It’s an open question what the courts will do,” says Grimmelmann. 

While litigation brews, states will move to pass child safety laws, which are exempt from Trump’s proposed ban on state AI laws. On January 9, OpenAI inked a deal with a former foe, the child-safety advocacy group Common Sense Media, to back a ballot initiative in California called the Parents & Kids Safe AI Act, setting guardrails around how chatbots interact with children. The measure proposes requiring AI companies to verify users’ age, offer parental controls, and undergo independent child-safety audits. If passed, it could be a blueprint for states across the country seeking to crack down on chatbots. 

Fueled by widespread backlash against data centers, states will also try to regulate the resources needed to run AI. That means bills requiring data centers to report on their power and water use and foot their own electricity bills. If AI starts to displace jobs at scale, labor groups might float AI bans in specific professions. A few states concerned about the catastrophic risks posed by AI may pass safety bills mirroring SB 53 and the RAISE Act. 

Meanwhile, tech titans will continue to use their deep pockets to crush AI regulations. Leading the Future, a super PAC backed by OpenAI president Greg Brockman and the venture capital firm Andreessen Horowitz, will try to elect candidates who endorse unfettered AI development to Congress and state legislatures. They’ll follow the crypto industry’s playbook for electing allies and writing the rules. To counter this, super PACs funded by Public First, an organization run by Carson and former Republican congressman Chris Stewart of Utah, will back candidates advocating for AI regulation. We might even see a handful of candidates running on anti-AI populist platforms.

In 2026, the slow, messy process of American democracy will grind on. And the rules written in state capitals could decide how the most disruptive technology of our generation develops far beyond America’s borders, for years to come.

❌