SB 53, the AI security and transparency invoice that California Gov. Gavin Newsom signed into regulation this week, is proof that state regulation doesn’t should hinder AI progress.  

So says Adam Billen, vice chairman of public coverage at youth-led advocacy group Encode AI, on immediately’s episode of Fairness. 

“The fact is that coverage makers themselves know that we’ve to do one thing, and so they know from engaged on one million different points that there’s a approach to cross laws that genuinely does defend innovation — which I do care about — whereas ensuring that these merchandise are protected,” Billen instructed TechCrunch. 

At its core, SB 53 is a first-in-the-nation invoice that requires massive AI labs to be clear about their security and safety protocols — particularly round how they stop their fashions from catastrophic dangers, like getting used to commit cyberattacks on vital infrastructure or construct bio-weapons. The regulation additionally mandates that firms stick with these protocols, which shall be enforced by the Workplace of Emergency Providers.  

“Corporations are already doing the stuff that we ask them to do on this invoice,” Billen instructed TechCrunch. “They do security testing on their fashions. They launch mannequin playing cards. Are they beginning to skimp in some areas at some firms? Sure. And that’s why payments like this are necessary.” 

Billen additionally famous that some AI companies have a coverage round stress-free security requirements underneath aggressive strain. OpenAI, for instance, has publicly said that it might “alter” its security necessities if a rival AI lab releases a high-risk system with out related safeguards. Billen argues that coverage can implement firms’ current security guarantees, stopping them from reducing corners underneath aggressive or monetary strain. 

Whereas public opposition to SB 53 was muted in comparability to its predecessor SB 1047, which Newsom vetoed final 12 months, the rhetoric in Silicon Valley and amongst most AI labs has been that just about any AI regulation is anathema to progress and can in the end hinder the U.S. in its race to beat China.  

It’s why firms like Meta, VCs like Andreessen Horowitz, and highly effective people like OpenAI president Greg Brockman are collectively pumping lots of of thousands and thousands into tremendous PACs to again pro-AI politicians in state elections. And it’s why those self same forces earlier this 12 months pushed for an AI moratorium that will have banned states from regulating AI for 10 years.  

Encode AI ran a coalition of greater than 200 organizations to work to strike down the proposal, however Billen says the battle isn’t over. Senator Ted Cruz, who championed the moratorium, is making an attempt a brand new technique to attain the identical objective of federal preemption of state legal guidelines. In September, Cruz launched the SANDBOX Act, which might enable AI firms to use for waivers to briefly bypass sure federal rules for as much as 10 years. Billen additionally anticipates a forthcoming invoice establishing a federal AI commonplace that will be pitched as a middle-ground resolution however would in actuality override state legal guidelines. 

He warned that narrowly scoped federal AI laws may “delete federalism for crucial know-how of our time.” 

“When you instructed me SB 53 was the invoice that will substitute all of the state payments on all the things associated to AI and the entire potential dangers, I’d let you know that’s in all probability not an excellent thought and that this invoice is designed for a selected subset of issues,” Billen stated.  

Whereas he agrees that the AI race with China issues, and that policymakers have to enact regulation that may help American progress, he says killing state payments — which primarily deal with deepfakes, transparency, algorithmic discrimination, youngsters’s security, and governmental use of AI — isn’t the best way to go about doing that. 

“Are payments like SB 53 the factor that may cease us from beating China? No,” he stated. “I believe it is simply genuinely intellectually dishonest to say that that’s the factor that may cease us within the race.” 

He added: “If the factor you care about is thrashing China within the race on AI — and I do care about that — then the belongings you would push for are stuff like export controls in Congress,” Billen stated. “You’d guarantee that American firms have the chips. However that’s not what the business is pushing for.” 

Legislative proposals just like the Chip Safety Act goal to stop the diversion of superior AI chips to China by export controls and monitoring gadgets, and the prevailing CHIPS and Science Act seeks to spice up home chip manufacturing. Nevertheless, some main tech firms, together with OpenAI and Nvidia, have expressed reluctance or opposition to sure points of those efforts, citing issues about effectiveness, competitiveness, and safety vulnerabilities.  

Nvidia has its causes — it has a powerful monetary incentive to proceed promoting chips to China, which has traditionally represented a good portion of its international income. Billen speculated that OpenAI may maintain again on chip export advocacy to remain within the good graces of essential suppliers like Nvidia. 

There’s additionally been inconsistent messaging from the Trump administration. Three months after increasing an export ban on superior AI chips to China in April 2025, the administration reversed course, permitting Nvidia and AMD to promote some chips to China in alternate for 15% of the income. 

“You see individuals on the Hill shifting in direction of payments just like the Chip Safety Act that will put export controls on China,” Billen stated. “Within the meantime, there’s going to proceed to be this propping up of the narrative to kill state payments which are really fairly gentle powerful.” 

Billen added that SB 53 is an instance of democracy in motion — of business and policymakers working collectively to get to a model of a invoice that everybody can agree on. It’s “very ugly and messy,” however “that means of democracy and federalism is your complete basis of our nation and our financial system, and I hope that we’ll preserve doing that efficiently.” 

“I believe SB 53 is among the greatest proof factors that that may nonetheless work,” he stated.

This text was first revealed on October 1.