Republican Senators Tim Scott and Bill Hagerty, key figures in crypto legislation like the GENIUS Act, introduced a bill on Tuesday to give the U.S. Commerce Department new powers to protect domestic AI technology from foreign adversaries. The bill would allow Commerce to block transactions involving technology from entities owned or controlled by adversary nations such as China, Russia, Iran, and North Korea. The legislation targets supply chain vulnerabilities, aiming to prevent adversaries from exploiting U.S. AI tech in cars, phones, or networks. It also codifies an assistant secretary position for ICT supply chains and maintains open-source AI access. However, with Congress nearing summer break and midterm elections, the bill faces uncertain odds unless attached to must-pass legislation. Scott and Hagerty previously collaborated on the GENIUS Act for stablecoins. The bill aligns with President Trump's recent executive order promoting AI innovation while protecting American IP from theft.

Key facts

• Senators Tim Scott and Bill Hagerty introduce bill to protect U.S. AI technology.
• Commerce Department gains authority to block transactions with foreign adversaries.
• Targets China, Russia, Iran, North Korea for supply chain threats.
• Bill codifies assistant secretary role for ICT supply chains.
• Passage uncertain due to congressional schedule and midterm elections.