AI Tokens Plunge 10% As US Senate Rejects Federal AI Regulation Freeze

The Senate voted 99-1 against a proposed 10-year AI regulation moratorium, signaling major pushback from lawmakers.
AI-related cryptoassets saw a 5% drop in market cap and trade volume after the bill’s rejection.
The proposed moratorium would have limited states' ability to regulate AI-related crimes, fueling significant political controversy.

Trump’s Big Beautiful Bill no longer contains a 10-year moratorium on AI regulation, causing several setbacks for related tokens. Trade volumes and market cap for AI cryptoassets both fell over 5% in the last 24 hours.

Senators overwhelmingly shot down the moratorium in a 99-1 vote that saw pro-crypto legislators abandon the effort. Still, the market sector was already in a slump, and it’s hard to determine the bill’s impact.