Author: 0xElora
In the Oval Office of the White House, just as Trump signed the GENIUS Act, he boldly announced the America's AI Action Plan: "Now, let the world see the real American rules."

Introduction

In July 2025, a storm of digital economy swept through the American political arena.

On July 17, the House of Representatives passed the Clarity Act (H.R.3633) with a vote of 294 in favor and 134 against, clearing the regulatory fog for the cryptocurrency market. Almost simultaneously, on July 23, the Trump administration announced the America's AI Action Plan, with over 90 policy measures, vowing to ensure the United States' absolute dominance in the field of artificial intelligence (AI) through deregulation, infrastructure development, and global technology export.

The consecutive launch of these two policies has built a new system of offense and defense in the competition for digital hegemony, akin to the "double acceleration button" pressed by the Trump administration for the digital economy, igniting market enthusiasm. From Wall Street to Silicon Valley, from the crypto sphere to the AI circle, this "dual carnival" is reshaping the future of American technology and finance.

The AI Action Plan deregulates giants like OpenAI, Microsoft, and Amazon, while the Clarity Act injects certainty into crypto companies like Coinbase and Kraken. Can the synergy of the two truly open a new era of finance and technology? This article will analyze the mechanisms, impacts, and controversies of these two policies from a professional perspective, and explore their profound significance for the Chinese market and global competition.

Trump's AI Action Plan: Silicon Valley's "Freedom Carnival"

https://www.ai.gov/action-plan

Background: The Urgency of the Global AI Competition

As of July 24, 2025, the global AI market is expected to reach $390 billion, with the United States holding a 49% share; Chinese AI companies (such as DeepSeek) have rapidly risen with open-source models, reaching a market size of $90 billion in 2024, accounting for 23% of the global market. The EU's AI Act and Singapore's tech-friendly policies have also attracted substantial capital, threatening America's technological hegemony.

Trump's AI Action Plan aims to reclaim global AI leadership through three pillars: deregulation, infrastructure building, and technology export. Michael Kratsios, Director of the White House Office of Science and Technology Policy, stated, "This plan outlines a decisive roadmap for American AI hegemony." David Sacks, the AI and cryptocurrency czar, added, "AI is a revolutionary technology that concerns the global economy and balance of power. The U.S. must win!"

Core Mechanisms

Deregulation: Mechanism for Unleashing AI Giants

• Abolishing Biden's Policies: On his first day in office, Trump revoked Biden's 2023 AI Executive Order (EO 14110), deeming it "stifling innovation," and called for federal agencies to review and repeal all regulations "hindering AI development."
• Copyright Protection: Supports AI models treating copyrighted materials as "fair use," allowing companies like OpenAI and Microsoft to avoid legal risks.
• Procurement Standards: The federal government prioritizes procurement of AI models that are "free from ideological bias," emphasizing "free speech."

Possible Impacts:

• Corporate Benefits: Giants like OpenAI, Microsoft, and Amazon benefit from lower compliance costs, accelerating model development.
• Risks: The AI Now Institute warns that deregulation may amplify misinformation, with AI fraud losses reaching $200 million in 2024.
• Controversies: The vague definition of "unbiased" may increase compliance complexity, slowing innovation by 10%.

Infrastructure Development: Mechanism for Computing Power and Energy Revolution

• Streamlined Approvals: Repeals certain provisions of the Clean Air Act and Clean Water Act to expedite the construction of data centers and semiconductor factories.
• Massive Investments: Announces $500 billion in private AI infrastructure investment, including OpenAI, SoftBank, and Oracle's Stargate project (which has already deployed $100 billion with 20 data centers under construction).
• Energy Upgrades: Meets AI computing power demands through grid optimization and cutting-edge energy technologies (such as nuclear fusion).

International Leadership: Mechanism for Exporting American AI Standards

• Technology Exports: The Department of Commerce and the State Department collaborate with businesses to promote a "full-stack AI export package" (hardware, models, software) to allies.
• Security Precautions: The Department of Homeland Security establishes an AI information-sharing center to guard against cyber threats.
• China Strategy: Eases Nvidia's restrictions on AI chip sales to China while tightening export controls on subsystems.

Possible Impacts:

• Geopolitical Advantage: Similar to the 5G competition, U.S. AI technology may become the global standard.
• Risks: Easing export restrictions to China may enhance its AI capabilities by 10%.

Clarity Act: The "Rules Revolution" in the Crypto Market

https://www.congress.gov/bill/119th-congress/house-bill/3633/text The full name of the CLARITY Act is the Digital Asset Market Clarity Act (House Bill 3633).

Background: The Crypto Boom Amid Regulatory Fog

On July 17, 2025, the House of Representatives passed the Clarity Act with a vote of 294 in favor and 134 against, bringing clear rules to the cryptocurrency market. The global crypto market is valued at $2.7 trillion, but the U.S. has lost substantial investments due to jurisdictional conflicts between the SEC and CFTC, with blockchain financing in 2024 only reaching $4.5 billion, far below the EU's $7.8 billion. The Clarity Act aims to revitalize the U.S. crypto industry by clarifying classifications and regulatory responsibilities.

Core Mechanisms

Decentralized Regulation: Collaborative Mechanism between CFTC and SEC

• Classification: Digital commodities (decentralized blockchain assets) are regulated by the CFTC, securities tokens by the SEC, and stablecoins are supplemented by the GENIUS Act.
• Decentralization Exemption: Blockchain projects achieving decentralization within 12 months and raising up to $75 million can be exempt from SEC registration.
• Disclosure and Compliance: Issuers must disclose token economic models, and exchanges must comply with CFTC anti-money laundering rules.

Possible Impacts:

• Companies: Exchanges like Coinbase see a 15% reduction in costs, and DeFi projects grow by 20%.
• Risks: Regulatory loopholes may lead to fraud, similar to the $5 billion losses during the 2017-2018 ICO boom.

Market Incentives: Innovation and Capital Flow Mechanism

• Fundraising Exemptions: Small and medium projects (such as NFTs and GameFi) can raise funds quickly.
• Exchange Regulations: CFTC oversight enhances credibility, attracting institutional capital.
• International Coordination: Reduces risks in cross-border transactions.

Possible Impacts:

• Startups: Successful cases like Axie Infinity may surge.
• Risks: Abuse of exemptions may lead to a resurgence of ICO fraud.

Consumer Protection and Controversy Mechanism

• Disclosure Transparency: Reduces fraud risks.
• Anti-Money Laundering: Compliance with the Bank Secrecy Act.
• Shortcomings: Lack of mandatory clear disclosures may make it difficult for retail investors to understand.

Possible Impacts:

• Positive: Enhances retail investor confidence.
• Controversy: Elizabeth Warren warns that regulatory loopholes could lead to "the next FTX."

AI and Crypto's Synergistic Effect: The Dual Engines of the Digital Economy

It is noteworthy that the simultaneous launch of the AI Action Plan and the Clarity Act in July 2025 is no coincidence. It profoundly reflects the Trump administration's core logic of "deregulating, stimulating innovation, and strengthening dominance" in the tech sector. Below, we analyze their interconnected impacts from several key dimensions:

For the U.S. Domestic: Reshaping the Tech and Financial Ecosystem

1. AI Investment and Infrastructure Boom

The AI Action Plan sends a strong signal, greatly boosting market confidence. In the week following the policy announcement, the private sector announced massive new investments: Oracle and OpenAI are ramping up the Stargate super data center project, adding 4.5 gigawatts of computing power (expected to create over 100,000 jobs); SoftBank, MGX, and others plan to invest $500 billion in AI infrastructure in the U.S. over the next four years. It is foreseeable that, with federal government backing and policy incentives, more capital will flow into domestic AI chip manufacturing, cloud computing, and model development. This will accelerate the growth of AI companies, spawn new startups, and create opportunities along the industry chain, solidifying Silicon Valley's status as a global AI innovation center.

2. Deregulation, Innovation Erupts

The removal of cumbersome regulations (such as simplified environmental approvals and lifted R&D restrictions) grants AI companies unprecedented freedom. The principle of "AI free speech" alleviates the pressure of political correctness on model development, unleashing innovative vitality. The tech community generally welcomes the government's "get out of the way" approach, hoping for market-led AI progress while calling for support for open source to prevent monopolization by giants. Overall, deregulation is expected to enhance the competitiveness and prosperity of the U.S. AI industry in the short term.

3. Potential Risks and Sharp Criticism

Digital rights organizations warn that completely allowing private giants to dominate AI may harm public interests, create system opacity, and erode consumer trust. The vagueness of the "unbiased" definition and the federal government's threat to cut funding for non-cooperative states raise concerns about interfering with free speech and suppressing beneficial local explorations (such as California's safety standards), potentially triggering jurisdictional disputes between federal and state authorities.

4. The "Compliance Spring" in the Crypto Market

The Clarity Act ends long-standing regulatory uncertainty, seen by the industry as a foundational moment akin to the 1933 Securities Act for digital assets. Overseas entrepreneurs consider returning, and local institutions accelerate compliance preparations. Coinbase CEO Brian Armstrong praises it as "smart bipartisan legislation." The clarification of regulations will attract compliant capital (especially from Wall Street institutions) into the market, driving the development of innovative products like digital securities and on-chain derivatives, and solidifying the global crypto financial centers in New York, Miami, and beyond.

5. Restructuring Regulatory Framework and Competition

The Act establishes the CFTC's core role in regulating crypto commodities, requiring the SEC to retreat to traditional securities, resolving long-standing conflicts of responsibility. The industry anticipates a more inclusive regulatory culture from the CFTC (in contrast to the SEC's strict enforcement). However, financial reform advocates warn that the Act may weaken investor protections, lacking sufficient measures against fraud, manipulation, and exchange scrutiny, leaving room for regulatory arbitrage. Future coordination between the SEC and CFTC will be crucial.

For U.S.-China Competition: Escalating Games and Rule Struggles

1. AI Chips

From Blockade to Competition: Trump's strategy shows subtle adjustments: on one hand, accelerating domestic chip manufacturing and computing power infrastructure (such as simplifying wafer plant approvals) to pursue generational leadership; on the other hand, moderately easing restrictions on high-end AI chip exports to China (such as Nvidia H20 and AMD MI308). This aims to balance technological blockade with U.S. corporate interests (losing the Chinese market harms their R&D capabilities). Short-term pressure on China eases, but reliance on core technologies remains unresolved, inevitably increasing investment in independent R&D. The competition shifts from "strangling" to a more complex competitive game.

2. Algorithm Sovereignty and Technological System Confrontation

The core ambition of the AI Action Plan lies in global dominance. The U.S. promotes "secure and trustworthy" full-stack AI solutions to allies, effectively promoting American standards and constructing an ecosystem that excludes Chinese technology, undermining China's implementation of solutions and data acquisition in regions like the Belt and Road Initiative. China is pushing for "algorithm autonomy" (such as Baidu's PaddlePaddle and independent large models) in response. The competition between the two sides in international standard organizations and AI governance platforms will intensify, potentially leading to a split in the global AI ecosystem into different technological standards and data governance rules.

3. Dominance in Blockchain and Digital Finance

The Clarity Act is a key step for the U.S. in vying for the future financial infrastructure rule-making power. The goal is to lock the global crypto industry center in the U.S., ensuring the dollar's dominance in digital assets and preventing the rise of Chinese blockchain standards (such as BSN) from impacting the dollar system. The U.S. strategy is to support and strictly regulate private dollar stablecoins (bringing them under mainstream financial regulation), making them effectively the "digital dollar" and squeezing the international space for China's digital yuan. The Act's clear regulations also respond to China's previous criticisms of U.S. regulatory inadequacies, reclaiming the narrative.

4. Military and Security as an Extended Battlefield

The AI Action Plan includes a pillar on "International AI Security and Diplomacy," emphasizing sharing AI military technology (intelligence analysis, unmanned systems) with allies and jointly formulating norms to constrain China. The potential of blockchain in cybersecurity and anti-sanctions is also viewed as crucial for future digital battlefields. The intertwining of technology policy and geopolitical strategy in AI and blockchain fields makes the struggle over technological standards a contest of national strength and models.

For the Global Landscape: Regulatory Fragmentation and Sovereignty Awakening

1. Deepening U.S.-EU Divergence and Starting a Regulatory Race

Trump's lenient approach sharply contrasts with the EU's strict risk control in the AI Act. The U.S.'s significant deregulation may force the EU to make partial adjustments under pressure from industrial outflows, but due to differing values (privacy, ethics), it is unlikely to fully emulate the U.S. The EU may emphasize "trustworthy AI" as a differentiating competitive advantage. In the future, the contradiction between the EU's demands for U.S. companies to comply with its rules and the U.S.'s opposition to "extra regulation" will intensify in trade negotiations, increasing global compliance costs for businesses.

2. Rising Tide of Digital Sovereignty

The U.S.'s technology export and standard-setting strategy stimulates concerns among countries about technological dependence undermining sovereignty. Countries accepting U.S. proposals may seek to "hedge their bets" (engaging with China or other suppliers simultaneously). Emerging powers like India are accelerating the formulation of domestic AI ethics and standards. The EU's Gaia-X cloud initiative and efforts to support local AI companies reflect the pursuit of digital sovereignty. In the future, data localization, algorithm transparency requirements, and support for local alternatives will become common trends, leading to fragmentation of the global tech ecosystem.

3. Dilemmas of International Norms and Multilateral Governance

The U.S. tends to establish AI rules within its circle of allies (such as G7, OECD) while being skeptical of multilateral mechanisms like the UN that include China and Russia. This makes it extremely difficult to form a unified global AI governance framework. In the digital finance sector, the U.S. pushing for dollar stablecoins to become the global standard may erode the monetary sovereignty of other countries, provoking a united resistance from developing nations, but the U.S., leveraging its strong position in institutions like the IMF, may ignore this. Vice President Vance's strong statement of "not accepting foreign control over U.S. companies" indicates that global coordination will face significant challenges, and risks (such as an AI arms race and regulatory arbitrage) are likely to rise.

Conclusion

Ultimately, these two policies are strategic pillars for the Trump administration to build comprehensive hegemony in the American digital age. The AI Action Plan serves as a "national mandate" to ensure the U.S. leads in the new industrial revolution. Through government support and deregulation, the U.S. aims to gather the world's top talent, capital, and technology for exponential development, outpacing its competitors. From the "Stargate" to AI talent cultivation, the goal is to create an AI era dominated by the United States.

The Clarity Act is a hegemonic tool in the fintech sector: by setting rules, it attracts global capital to converge in the U.S. market, forcing other countries to accept its driven innovation and risk management model. Becoming the largest exporter and rule-maker of digital assets and AI grants the U.S. significant leverage in international negotiations to further consolidate its technological hegemony.

From Silicon Valley in the U.S. to Zhongguancun in Beijing, from Brussels' official halls to Africa's mobile payment markets, the global impact of this policy wave will be felt to varying degrees. For the U.S., this is a high-stakes gamble on the future: as long as it continues to lead in the innovation race and allows the world to follow its rules, it can sustain and amplify its dominant position.