AI, Crypto, M&A, and Data Privacy: Trump’s Record on Regulation

Image: Unsplash

AI, Crypto, M&A, and Data Privacy: Trump’s Record on Regulation

It is not surprising that technology regulation was an important issue in the U.S. presidential campaign. The past decade has seen advanced technologies, from social media algorithms to large language model artificial intelligence systems, profoundly affect society. These ...

November 6, 2024 - By Anjana Susarla

AI, Crypto, M&A, and Data Privacy: Trump’s Record on Regulation

Image : Unsplash

Case Documentation

AI, Crypto, M&A, and Data Privacy: Trump’s Record on Regulation

It is not surprising that technology regulation was an important issue in the U.S. presidential campaign. The past decade has seen advanced technologies, from social media algorithms to large language model artificial intelligence systems, profoundly affect society. These changes, which spanned the Trump and Biden-Harris administrations, spurred calls for the federal government to enact regulation to govern the technologies and the powerful corporations that wield them.

With a new President-elect decided this week, we take a look at Donald Trump’s record on technology regulation in an effort to determine what can likely be expected during his second tenure as President … 

Algorithmic harmsWith artificial intelligence now widespread, governments worldwide are grappling with how to regulate various aspects of the technology. The candidates offer different visions for U.S. AI policy. One area where there is a stark difference is in recognizing and addressing algorithmic harms from the widespread use of AI technology. AI affects our life in ways that might escape your notice. Biases in algorithms used for lending and hiring decisions could end up reinforcing a vicious cycle of discrimination. For example, a student who can’t get a loan for college would then be less likely to get the education needed to pull herself out of poverty

While Kamala Harris spoke of the promise of AI but also the perils from algorithmic bias, deepfakes and wrongful arrests and President Biden signed an executive order on AI that recognized AI systems can pose unacceptable risks of harm to civil and human rights and individual well-being, Trump and the administration during his previous presidential term did not take a public stance on mitigation of algorithmic harms. 

Trump has said he wants to repeal President Biden’s AI executive order. However, in recent interviews, Trump noted the dangers from technologies such as deepfakes and challenges posed to security from AI systems, suggesting a willingness to engage with the growing risks from AI.

Technological standardsThe Trump administration signed the American AI Initiative executive order in February 2019. The order pledged to double AI research investment and established the first set of national AI research institutes. The order also included a plan for AI technical standards and established guidance for the federal government’s use of AI. Trump also signed an executive order in December 2020, promoting the use of trustworthy AI in the federal government.

AntitrustAntitrust law enforcement – restricting or conditioning mergers and acquisitions – is another way the federal government regulates the technology industry (and beyond).  The Trump administration’s antitrust dossier includes its attempt to block AT&T’s acquisition of Time Warner. The merger was eventually allowed by a federal judge after the Federal Trade Commission under the Trump administration filed a suit to block the deal. The Trump administration also filed an antitrust case against Google focused on its dominance in internet search.

CryptocurrencyThe candidates have different approaches to cryptocurrency regulation. Late in his administration, Trump tweeted in support of cryptocurrency regulation. Also late in Trump’s administration, the federal Financial Crimes Enforcement Network proposed regulations that would have required financial firms to collect the identity of any cryptocurrency wallet to which a user sent funds. The regulations were not enacted. 

Trump has since shifted his position on cryptocurrencies. He has criticized existing U.S. laws and called for the United States to be a Bitcoin superpower. The Trump campaign is the first presidential campaign to accept payments in cryptocurrencies.

Data privacyThe Trump White House’s American AI Initiative executive order mentions privacy only in broad terms, calling for AI technologies to uphold “civil liberties, privacy, and American values.” The order did not mention how existing privacy protections would be enforced. Across the U.S., several states have tried to pass legislation addressing aspects of data privacy. At present, there is a patchwork of statewide initiatives and a lack of comprehensive data privacy legislation at the federal level.

The paucity of federal data privacy protections is a stark reminder that while the candidates are addressing some of the challenges posed by developments in AI and technology more broadly, a lot still remains to be done to regulate technology in the public interest.


Anjana Susarla is a Professor of Information Systems at Michigan State University. 

related articles