opinion:
In the world of technology, the best dealmakers are those who can bring an innovative approach to the negotiation table. Even if some people are content to be defensive, innovators have an uncanny ability to flip the scenario and unlock big wins for their businesses. What would be their fuel in these scenarios? You have a great product or service and the confidence needed to sell it.
With Washington locked in a stalemate over government funding, Republican leaders should be more opportunistic in their negotiations. They have a good product to sell and should not hesitate to extract concessions from Democrats as negotiations continue.
The problem we need to address immediately is the patchwork of national AI regulations. Congress nearly passed an amendment to the balance of power as part of President Trump’s One Big Beautiful Bill Act, but special interests killed the bill for a vote in the Senate.
As the CEO and co-founder of Telnyx, an artificial intelligence communications company, I’ve seen firsthand how government regulation impacts America’s small businesses. From expanding broadband to rural towns to modernizing customer service with new tools, innovation is the lifeblood of growth. That’s why the debate around AI in Congress is so important.
Republicans are becoming the party of innovation, while Democrats increasingly imitate the European Union with burdensome overregulation that hinders progress. Look at the EU’s AI Act 2024. The law threatens fines of up to $41 million, equivalent to 7% of global revenue, and is prompting behavioral changes in the technology/AI sector.
If Republicans want to flip the game on their head in funding negotiations, they should secure federal pre-emption now and ensure that the US, not the EU, sets the pace for AI. The time to attack is now.
The AI community is hopeful as a surge of conservatives from government to Congress suggests it may be time to try again on the moratorium. President Trump’s senior AI adviser, Sriram Krishnan, told Politico last month that he doesn’t want California to set the rules for AI across the country. Sen. Ted Cruz, R-Texas, told the outlet that the moratorium “is far from over.” The House Energy and Commerce Committee vowed to find a way forward and try again.
Unless Congress acts, Democratic-led states will set the standards for AI laws. If states with large enough markets, such as California or New York, set strict rules and regulations, AI companies will have no choice but to shape their tools and products to fit those state laws. This means that these large states are actually more likely to stifle innovation in other parts of the country.
This madness goes beyond just one set of regulations. Democratic-led states will seek to outdo each other for maximum control over tech companies. Take a look at a bill recently passed in Colorado. It will be red tape on steroids, followed by dysfunctional innovation and a deserted market.
The messy patchwork of state AI laws doesn’t just hurt companies like mine. It would also slow the broader economy. If companies get stuck dealing with 50 different rules, they end up spending more money on lawyers than on innovation. That means fewer jobs, slower progress, and less investment in the very technologies that allow the United States to stay ahead of China and Europe.
VoIP has its caveats. In 2004, the Federal Communications Commission’s Vonage Preemption Order concluded that state entry, certification, and similar economic regulations were inconsistent with federal policy and preempted because Nomad Interconnect VoIP could not actually be separated into intrastate and interstate traffic, and the 8th U.S. Circuit Court of Appeals upheld this decision based on the “impossibility” exception in Minnesota PUC v. FCC (2007).
But in recent years, states, particularly California, have begun imposing licensing and registration, user fees, bonds and other obligations on VoIP providers, prompting a flurry of industry petitions asking the FCC to reaffirm federal preemption rights. This patchwork makes no sense for nomadic VoIP, which is functionally interstate by design, but the states are still ahead of the curve.
The potential of AI is too important to be left to fragmented systems. If we get this right, we can spark a wave of innovation that benefits small businesses, boosts local economies, and keeps America competitive on the world stage. Get it wrong and you risk drowning entrepreneurs in red tape while the rest of the world scrambles to get ahead.
I urge lawmakers to focus on building a strong and smart federal framework. Make sure technology is a tool for growth. Get started now. Congressional Republicans, it’s time to stop playing defense and put a national AI moratorium on the table in government funding negotiations.
• David Casem is co-founder and CEO of Telnyx.
