Trump rebuffs AI safeguards as crypto risks mount

President Donald Trump has dismissed calls for stricter artificial intelligence regulations, maintaining that existing US powers are adequate. This stance comes as security experts warn that faster AI systems are expanding the attack surface for cryptocurrency platforms and decentralized finance. Trump's position puts the White House in conflict with industry figures who have urged stronger testing, independent audits, and tighter controls on advanced AI models capable of autonomous cyber activities.

This dispute is particularly pertinent to digital assets, as AI tools are increasingly used in both security and malicious activities. Developers utilize AI to review smart contract code, identify suspicious transactions, and automate monitoring. Conversely, attackers leverage these same capabilities to enhance phishing, impersonation, reconnaissance, and exploitation at a faster pace.

In June, Trump's administration issued an executive order focusing on enforcing federal laws against unauthorized access to computer systems or related crimes, emphasizing innovation and rejecting what it deemed burdensome regulation. This approach is now being challenged by a surge in cryptocurrency attacks. According to CertiK, over $1.31 billion in Web3 security losses occurred across 344 incidents during the first half of 2026, with over $444 million in wallet compromises.

TRM Labs reported 207 hacks in the same six-month period, totaling $972 million in losses. These figures highlight an increase in attacks, operational complexity, and a shift towards focusing on infrastructure rather than just smart contract flaws. Fireblocks noted that several attacks in the second quarter showcased how social engineering and weak operational controls, combined with AI-enhanced techniques, can be devastating.

For example, an April breach involving Zerion exploited AI-generated personas and interaction methods to gain trust, access internal systems, and ultimately steal user funds. Researchers are also closely monitoring the development of autonomous agents that can perform tasks like reconnaissance, credential theft, and system probing.

Anthropic warned in a threat assessment released in September that the misuse of advanced AI models has shifted from isolated prompts to more autonomous workflows that can carry out portions of cyber operations with minimal human supervision. This development is concerning for decentralized finance (DeFi), where open-source code, automated contracts, and rapid liquidity movement create narrow response windows.

Once a vulnerability is identified, attackers can often execute transactions globally within minutes, while defensive teams may need governance approval, exchange cooperation, or validator action to freeze or redirect funds. Although Trump's stance does not eliminate existing cybercrime, fraud, or market-manipulation laws, or prevent regulators or private companies from imposing their own security requirements, it does reduce the likelihood of federal rules mandating safety testing or deployment limits for advanced AI systems unless Congress takes independent action.

Some senators are discussing legislation that would require major AI developers to demonstrate protections against catastrophic misuse and allow government testing of advanced systems. However, this proposal faces uncertain prospects without White House support. Industry leaders from AI companies have called for stronger safeguards, despite differing opinions on their structure.

Anthropic's CEO, Dario Amodei, has advocated for independent evaluations of powerful systems, while OpenAI's CEO, Sam Altman, supports oversight for frontier models. Elon Musk has repeatedly warned that advanced AI could pose risks if development outpaces controls.