Trump Halts AI Executive Order, Citing Risk to U.S. Leadership in Global AI Race

President Trump abruptly pulled the plug on a planned signing of an executive order on artificial intelligence Thursday, saying parts of the proposal risked undermining the U.S. lead over China in the global AI race. Speaking from the Oval Office, Trump said he “didn't like certain aspects of it,” and that the order as drafted “gets in the way of—we’re leading China. We’re leading everybody.” He declined to identify the specific provisions he objected to or give a timeline for revisiting the measure. The announcement came during a press conference where the administration also touted rollbacks of refrigeration-related environmental rules as part of a broader deregulatory agenda. What was in the order - The White House had proposed a voluntary AI review framework that would give the federal government early access to advanced models before they were publicly released for national-security and capability testing. - The plan included provisions to allow “critical infrastructure” providers — explicitly including banks — to receive pre-release access to covered models, plus a cybersecurity element aimed at spotting vulnerabilities in unreleased AI systems. Why officials worried U.S. officials have been increasingly alarmed about the national-security implications of cutting-edge AI. That concern intensified after testing of Anthropic’s Claude Mythos reportedly showed the model could identify hundreds of software vulnerabilities and autonomously carry out complex cyber operations. Meanwhile, major AI companies — OpenAI, Google, and xAI among them — have stepped up partnerships with U.S. defense and intelligence agencies. Axios reported the NSA is already running Mythos on classified networks despite ongoing legal friction between Anthropic and the government. Trump’s stance and next steps Despite ongoing legal fights like the one with Anthropic, Trump framed himself as pro-AI and pro-growth, saying he supports AI development but feared the executive order would create “unnecessary obstacles” for the industry. “I really thought that could have been a blocker and I want to make sure that it’s not,” he said. He also noted a recent discussion about AI with Chinese President Xi Jinping, saying Xi “acknowledges how well we’re doing” and that Trump postponed the signing to avoid hindering U.S. leadership. What crypto companies should watch For crypto and blockchain firms, the episode is worth tracking: proposed pre-release access for “critical infrastructure” and cybersecurity reviews touch institutions that power crypto markets (banks, payment rails, and custodians). Any federal framework for vetting advanced AI could influence how exchanges, custody providers, and fintech partners deploy models for trading, fraud detection, compliance, and security — and could shape competitive dynamics between U.S. and foreign AI players. With the administration pausing the order to avoid impeding U.S. competitiveness, market participants will be watching for a reworked policy that balances security reviews with commercial agility.