US Senate Advances AI Legislation Amid Growing Calls for Regulation on Job Displacement
The US Senate passes key AI chip export restrictions under the GAIN Act amid Democratic calls for a 'robot tax' to address AI-driven job displacement.
- • The US Senate passed the GAIN Act requiring chipmakers to prioritize US orders over exports of advanced AI processors.
- • Democrats propose a 'robot tax' on companies replacing human jobs with AI due to a Senate report warning of 100 million job losses.
- • The GAIN Act allows Congress to deny export licenses for advanced AI chips and awaits House and presidential approval.
- • Export restrictions and trade tariffs pose risks to the US crypto mining industry, increasing hardware costs and reducing competitiveness.
Key details
The US Senate has taken significant legislative steps to address the impact and security implications of artificial intelligence (AI) with two major developments: the passage of the GAIN Act prioritizing domestic AI chip orders and increased political pressure from Democrats advocating an AI-driven "robot tax".
The Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2026 (GAIN Act), passed Thursday as an amendment to the National Defense Authorization Act (NDAA), requires chipmakers to fulfill US domestic orders of advanced processors before exporting them abroad. This measure grants Congress the authority to deny export licenses for high-end AI processors, aiming to secure American technological leadership.
However, concerns remain as the GAIN Act awaits approval by the House of Representatives and the president to become law. Industry experts warn that export restrictions may negatively impact the global cryptocurrency mining sector, already strained by tariffs and trade wars that have increased hardware costs for US-based miners. For example, companies like CleanSpark and IREN face hundreds of millions in liabilities due to trade duties on Chinese hardware. Moreover, demand for chips like Nvidia's Blackwell line faces year-long backlogs, underscoring supply challenges.
Concurrently, a Senate report has highlighted AI's potential to displace up to 100 million US jobs over the next decade, spurring Democrats to push for a "robot tax" on companies that replace human labor with AI technology. Senator Bernie Sanders voiced concerns over AI-driven automation eliminating millions of well-paying jobs, emphasizing the urgent need for regulatory safeguards.
This political momentum follows OpenAI's rise as the world’s most valuable private company, recently valued at $500 billion. OpenAI's latest AI models reportedly show reduced political bias, even as AI tools find applications across sectors including law enforcement and pet recovery.
These developments demonstrate a dual focus by US policymakers: securing America's position in the competitive global AI chip market while addressing the social and economic disruptions posed by AI automation. As AI’s impact on employment grows more tangible, legislative debates intensify on how best to balance innovation with fair labor protections and national security.