What Trump’s Second Presidency Means For AI, Cybersecurity And Crypto

As President-elect Donald Trump prepares to return to the White House for the second time, the technology industry is anticipating what could be a defining era of policy transformation. Key areas of focus include artificial intelligence, cryptocurrency, cybersecurity and strategic competition with China in high-tech sectors. With a legacy of bold regulatory shifts and an “America First” approach, Trump’s administration could profoundly reshape the tech landscape, both at home and abroad.

Artificial Intelligence: Racing Toward A New Frontier

Since Trump’s last term, AI has surged forward, moving from hypothetical potential to real-world applications that are redefining entire industries. Trump’s campaign has already hinted at plans to review and potentially repeal the Biden administration’s sweeping AI Executive Order, which implemented AI development guidelines. The Trump administration believes that loosening regulatory constraints could unlock innovation—essential to compete in the escalating AI race with China.

China currently holds a significant advantage, with around 38,000 AI patents compared to the U.S.'s 6,300. This gap underscores the urgent need for a U.S.-led AI revolution. Trump’s team suggests that strengthening the nation’s AI infrastructure and fostering an innovation-friendly environment is paramount for national security and economic dominance. Meanwhile, the AI Safety Institute, formed during Biden’s term, aims to balance innovation with strict regulatory safeguards. Trump’s policies will emphasize rapid AI advancement while exploring deregulation in areas where progress is being stymied by oversight.

Cybersecurity And National Defense: Protecting the Digital Battlefield

In an era when cyber threats loom large, cybersecurity remains not just a priority but an imperative. Critical infrastructure—ranging from transportation to power grids—faces increasing vulnerability, with digital attacks on the rise. During Trump’s previous term, he introduced a national cybersecurity strategy that set a course for modernizing government IT and fortifying defenses against malicious actors.

Trump’s administration has pledged to deploy “all tools” to protect essential assets, signaling a continued commitment to strengthening the nation’s defenses. This approach could mean broader government investment in cutting-edge cyber defenses, alongside collaboration with private tech firms to create fortified, resilient systems designed to withstand future cyber threats, particularly those originating from hostile nation-states.

Energy Policy: Powering A New Digital Age

As the U.S. becomes more reliant on high-tech infrastructure, energy demands are growing. AI and data centers require vast amounts of power, which can strain current resources. Trump’s administration has long supported U.S. energy independence, an objective aligned with his endorsement of oil production—dubbed “liquid gold.” The revived slogan “drill, baby, drill” reflects a commitment to expand domestic energy sources to meet this growing demand.

Additionally, nuclear energy is very likely to become part of the strategy, positioned as a sustainable power source capable of supporting the enormous infrastructure needs of a tech-driven economy. This multi-faceted approach aligns with Trump’s broader goal of securing American energy independence while ensuring that U.S. technological growth is underpinned by reliable energy sources.

Cryptocurrency: A Changing Stance On Digital Assets

Trump’s perspective on cryptocurrency has shifted dramatically. Initially cautious, he now shows openness to lighter regulation, a change welcomed by the burgeoning crypto industry. Stocks tied to crypto assets, including Coinbase and MicroStrategy, surged in response to Trump’s policy position. While the administration appears favorable toward crypto’s potential, the extent of regulatory changes remains uncertain and will depend on policies from both the White House and Congress.

Trade, Technology And The Semiconductor Industry: A Strategic Imperative

During Trump’s first term, tariffs on tech imports, particularly from China, were introduced to bolster U.S. manufacturing—a policy expected to continue. Now, Trump’s administration appears poised to further support domestic semiconductor production, a sector crucial for AI, 5G and advanced technologies. Maintaining U.S. dominance in chip manufacturing is essential to sustaining technological and economic leadership. Export restrictions on semiconductor technology to China may expand, a move that could impact global supply chains but align with broader objectives of preserving the U.S.’s strategic edge.

Immigration And Talent Acquisition

The tech industry’s dependence on international talent, particularly through H-1B visa programs, may face renewed scrutiny under stricter immigration policies. Trump’s previous immigration approach focused on enhancing U.S. security and prioritizing domestic employment, which could limit access to skilled workers in areas like AI and cybersecurity. This shift may drive companies to invest more in local talent development, training and hiring initiatives—potentially even reversing some of the significant tech layoffs experienced over the past two years.

A Renewed Focus On National Interests

Throughout his political career, Trump has championed an “America First” approach, a principle that is expected to guide his second term’s tech policies. While this stance may create opportunities for companies aligned with national priorities, it could also pose challenges for others. Anticipated shifts in policies around AI, cryptocurrency and cybersecurity will require tech companies to remain agile, adapting to evolving standards within a potentially fluid regulatory environment that may favor innovation over strict regulation.

Trump’s return to office signals a new chapter in U.S. technology policy, with a stated goal of reinforcing America’s global tech leadership. The influence of prominent tech leaders like Elon Musk and Marc Andreessen is also anticipated, as their views on innovation and national security could shape the administration's approach to technology policy. For the tech industry, this could usher in a period of rapid change and growth, with U.S.-led innovation and more flexible regulatory approaches setting a new standard on the global stage.

This article was originally published in Forbes by Emil Sayegh on November 11, 2024: https://www.forbes.com/sites/emilsayegh/2024/11/11/what-trumps-second-presidency-means-for-ai-crypto-and-cybersecurity/