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Dec. 20, 2024 |  By: Paige Gross - Missouri Independent

Trump tech appointees point to a deregulated industry, tech players say

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By Paige Gross - Missouri Independent

President-elect Donald Trump’s recent appointments and cabinet nominees are pointing to a four-year stint of deregulation in the tech industry, and lots of potential for competitive growth within the industry and globally, tech executives predict.

Trump has made a handful of recent selections, both to existing positions, like chair of the Federal Trade Commission and chair of the Securities and Exchange Commission, and he has created new positions for his term, like the “AI and crypto czar.”

“There appears to be much more cohesion and support from within his camp to support a range of geopolitical, technology and innovation issues that were relegated in importance during his first term,” software founder Yashin Manraj said.

Trump has chosen FTC Commissioner Andrew Ferguson to be the agency’s next chairman, replacing Lina Khan, who fought Big Tech overreach during her tenure. He’s slated to be joined by antitrust specialist Mark Meador in his former position. Together, the pair will likely continue to scrutinize Big Tech agencies, but for issues of “censorship” which was a Republican talking point during the election.

Earlier this month, Trump named cryptocurrency advocate and former SEC commissioner Paul Atkins as his pick for chair of the SEC, and appointed former PayPal executive David Sacks to a new role of “AI and crypto czar,” PBS reported.

The move comes as Trump’s view on digital currencies has evolved. During his first presidency, Trump called it “highly volatile and based on thin air,” but has since changed his tune. In September, he rolled out a new venture to trade crypto, called World Liberty Financial, and said during his 2024 campaign, that he aims to make the U.S. the “crypto capital of the planet.”

And on Monday, Trump met with Japanese-based investment firm SoftBank CEO Masayoshi Son, who announced a $100 billion investment into U.S. projects over the course of Trump’s term, many of which will focus on artificial intelligence.

 

Appointees setting the tone

 

These tech industry appointees and connections lean toward “traditional Republican deregulatory instincts,” said Dev Nag, Bay Area-based founder and CEO of AI automation company QueryPal.

It’s a shift toward something Nag calls “techno-pragmatic nationalism,” or a mixture of these Republican deregulation instincts with industry policy that focuses on maintaining the U.S.’ status in the global tech economy.

Ferguson’s appointment to the FTC will likely result in policies that continue to allow large U.S. tech companies to thrive while addressing specific competitive issues.

We’ll also probably see harder barriers against foreign tech competitors, especially China, Nag said.

Manraj, the Eagle Point, Oregon-based founder and CEO of software company Pvotal Technologies, also sees Trump’s appointments as an attempt to focus on growing the local tech economies, rather than the global one.

“These policies will weaken the tech industries of the European Union and many emerging countries, which were hoping for the heightened regulation under Harris to prevent further brain drains and promote [foreign direct investment] in their startup ecosystems,” Manraj said.

There was a lot of technical advancement during President Joe Biden’s term, but stronger tech regulations created some “confusion and hesitation” within the industry, Manraj said.

“Based on the track record of these appointees, we’re likely to see a significant rollback of AI safeguards implemented under the Biden administration, replaced with a framework emphasizing rapid deployment and commercialization,” Nag said.

SoftBank’s investment is a sign that the industry is feeling ready to develop, and that investment dollars are more likely to flow under a Trump administration, Manraj said.

 

Differences from Trump’s first term

 

The appointments and tech-industry relationships Trump has developed for his second term appear to make him more prepared to be supportive of tech innovation and growth than his first term, Manraj said.

He’s relying on “a new generation of technocrats,” to enact change, Manraj said, rather than politically driven cabinet advisors from his first time in office.

“The crypto world is reacting positively to it, and many projects treading water for years are finally ramping up hiring and growth locally in the U.S.,” Manraj said.

Nag predicted several potential technological advancements we may see under Trump’s second term, including the relaxation of AI restrictions paired with lots of investments into tech. That may allow for AI to integrate across lots of industries and infrastructures faster than it would have under a Kamala Harris administration.

Nag also noted Trump’s change in attitude toward crypto, saying a friendlier regulatory environment for the digital currencies may position the U.S. as a global leader in the space. We may also see more advancement in semiconductor manufacturing and computing capabilities under more relaxed regulations.

All of these advancements come with important governance considerations, though, Nag said. AI advancements that go so far without safety frameworks can create future problems that we can’t come back from.

“The key challenge for this administration will be maintaining the delicate balance between fostering rapid innovation and ensuring long-term technological resilience,” he said.