Sen. Ted Cruz of R-Texas is calling for a national AI regulatory framework to avoid what he describes as a fragmented, failed system of state-driven surveillance.
“One clear federal standard is needed to ensure failure by having conflicting standards from all states and all cities.
Cruz stressed his support for state rights, but he argued that artificial intelligence is a kind of problem requiring a unified federal approach.
He pointed to the Interstate Commerce Clauses of the Constitution. This gives legislature the power to regulate commercial transactions beyond state policies — says the clause is designed to prevent the kind of conflicting state regulations that can override national compliance with AI rules.
Interstate Commercial Clauses empower Congress to regulate interstate trade and serve as the basis for major federal laws. It also includes the “door” aspect, restricting states from passing laws that burden interstate commerce transactions.
Citing the commercial transaction clause, Cruz left AI regulations to the states, saying that conflicting rules from the 50 states are meaningless about the scope of national and often global technologies.
“I am a ferocious follower of federalism and state rights, and (but) Congress must establish rules for interstate commerce, not a contradictory rule that makes compliance unfeasible,” he said.
The Texas Republican specifically pointed to what he described as an effort by the “far-goers and mayors” whom he said would “silence innovation and benefit the foreign enemies.”
Specifically, Cruz criticized state laws like Colorado’s AI mission. It said that results require algorithmic audits to achieve diversity, equity and inclusion goals. He argued that such measures could curb innovation and ultimately have unintended consequences that would benefit foreign enemies.
The Colorado Artificial Intelligence Act (CAIA), which first signed the law in May 2024, is considered one of the most comprehensive efforts in the United States to regulate predictive AI.
The law calls for developers and deployment of “high risk” AI systems used in sectors such as housing, employment and healthcare to prevent discrimination in algorithms and disclose how the system is used in key decisions. Consumer advocates support the law, but tech industry critics argue that inconsistent state laws could hinder innovation.
However, Colorado legislators voted last month to delay the implementation of the state’s groundbreaking AI law after businesses and local governments raised concerns about compliance costs. During the special session, lawmakers moved the CAIA start date from February 2026 to June 30th.
Colorado Gov. Jared Police has convened some special sessions to address what his office called the “immediate and costly implementation” of the law.
Regulation Sandbox
Last week, Cruz announced the first of several AI-related bills to create a federal framework for AI regulation. This explains the shift in the US focus to maintaining global leadership in AI development.
“The very simple thing is to win an AI race, and I think we’re in a moment of change,” he said. He advocated the use of a regulated sandbox.
Regulated sandboxes are in place in over 50 countries. This model provides a mechanism to ensure regulators do not suppress emerging technologies while maintaining surveillance. Cruz pointed out that President Donald Trump included concepts in his administration’s AI strategy.
“This is not an unprecedented, strange idea,” Cruz said. “It’s implemented in many countries.”
The Cruise bill – called “Enhance the normalization and spread of artificial intelligence through surveillance and experimentation” is the first in a series of planned proposals to form Cruz’s five-pillar AI legislative framework.
Introduced on September 10 during the Senate Commerce Subcommittee on Science, Manufacturing and Competitive Hearing, the bill aims to promote safe AI development with a “light-touch” regulatory approach that reduces the burden on AI developers.
“This allows innovators to go to regulators and innovate existing regulations in search of exceptions or changes to existing regulations,” he said.
