As banks expand their deployment of artificial intelligence tools, Sen. Ted Budd (R-N.C.) called for federal regulation to preempt state laws on AI use. “We need federal preemption on anything that we do so we don’t have a patchwork problem,” Budd said at ABA’s Annual Convention in Charlotte.
“You don’t want to choke down innovation,” he added, calling for the U.S. to maintain its competitiveness internationally “so we don’t have offshoring of these [large language] models.”
Budd also addressed the debate over so-called “market structure” legislation to address potential gaps in the stablecoin regulatory framework in the wake of the Genius Act’s passage. “Banks are rightly concerned about an outflow” of deposits, he noted. “We want to do something, but we’re not sure the right way.”
