20 May 2025

California Governor Blocks AI Bill – Is Tech at Risk?

California Governor Gavin Newsom blocked an artificial intelligence (AI) safety bill that would have enforced strong security measures for AI companies and developers, potentially impacting industry growth.

California Governor Gavin Newsom blocked an artificial intelligence (AI) safety bill that would have enforced strong security measures for AI companies and developers, potentially impacting industry growth. 

Newsom pointed to the bill’s overly broad and general approach, saying it placed excessive burdens on both high-risk and low-risk AI models. 

If passed into legislation, the SB-1047 bill, introduced by Senator Scott Wiener, would have required AI developers and companies like Meta and OpenAI to implement strict safety measures, including a “kill switch” for their models, maintain detailed safety protocols, and undergo independent third-party audits to ensure compliance. 

The bill, also known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, additionally included provisions for whistleblower protections and allowed the Attorney General to pursue legal action in cases of non-compliance.

Governor Newsom acknowledged the importance of safety and agreed with concerns over the potential dangers of AI in his official statement, noting that “we cannot afford to wait for a major catastrophe to occur before taking action to protect the public,” the governor believes that this particular legislation could slow innovation and give the public false confidence in AI regulation.

Tech Industry Pushback and Support

The bill faced strong resistance from tech companies, including Google, OpenAI, and Meta. These companies emphasized that the artificial intelligence bill could harm innovation and drastically slow advancements in AI.

Jason Kwon, OpenAI’s Chief Strategy Officer, argued in a letter to Senator Wiener that AI regulation should be handled at the federal level rather than driven by ‘a patchwork of state laws’, as reported by Bloomberg. Despite amendments to the bill, which removed the creation of a new regulatory agency and reduced the attorney general’s authority, many companies still remained wary of its potential impact on AI development.

However, the bill found support from figures like Elon Musk and Hollywood stars, including Jane Fonda and “The Last of Us” star Pedro Pascal, who were among 125 industry professionals who signed the Artists 4 Safe AI open letter pushing the governor to green light the bill. 

Possible Implications of the Veto

Had SB-1047 passed, California would have set the strictest AI regulations in the U.S., applying to AI models with training costs that exceed $100 million. It would have mandated rigorous testing protocols and established protections for whistleblowers. But Newsom’s veto means there will be no binding regulations for AI companies in the state – at least for now.

“Ultimately, any framework for effectively regulating Al needs to keep pace with the technology itself “, Newsom added in his statement. 

Critics of the veto, including Senator Wiener, warned that the absence of oversight leaves the public exposed to potential risks posed by unchecked AI development. While the federal government is also exploring AI regulation, meaningful progress has yet to be made, leaving companies largely free to self-regulate.

As AI continues to shape industries and attract capital, with BlackRock launching an AI Infrastructure Fund and Microsoft building new AI data centers, the debate over how to balance innovation with responsible oversight remains far from resolved. Considering the global race for AI dominance, Newsom’s decision adds another layer of complexity to the ongoing conversation around AI regulation both in the U.S. and the world. 

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
Quantum Biopharma Adds $1M to Crypto Treasury in Strategic Expansion

Quantum Biopharma Adds $1M to Crypto Treasury in Strategic Expansion

Quantum Biopharma has expanded its crypto treasury to $4.5 million with a new $1 million allocation to BTC and other digital assets. This strategy also aims to generate additional yield through staking.

Dmytro Psevdonimenko
JPMorgan Enables Bitcoin Buying for Clients, But Custody Excluded

JPMorgan Enables Bitcoin Buying for Clients, But Custody Excluded

Jamie Dimon says JPMorgan is rolling out BTC buying access for clients. Still, the bank won’t offer custody or wallet services, and all transactions will show up in regular statements. Dimon remains a known crypto skeptic.

Dmytro Psevdonimenko
SEC Extends Review of Solana ETF Filings, Opens Public Comment

SEC Extends Review of Solana ETF Filings, Opens Public Comment

The SEC has extended its review period for Solana ETF applications submitted by 21Shares and Bitwise, and invited public comment on proposals from Canary and VanEck Trust.

Dmytro Psevdonimenko
U.S. DOJ Probes Data Breach at Major Crypto Exchange Coinbase

U.S. DOJ Probes Data Breach at Major Crypto Exchange Coinbase

The U.S. government is analyzing a recent hack of Coinbase crypto exchange that exposed customer data to cybercriminals.

Anton Kryshtal
Lyn Alden vs the System: A New Philosophy of Money

Lyn Alden vs the System: A New Philosophy of Money

She avoids hype, doesn’t promise miracles, and refuses to trade on fear—yet Wall Street reads her. Who is Lyn Alden, and why are her ideas challenging the foundations of modern finance?

Iaroslava Kramarenko
Sergey Nazarov (Chainlink): The Man Who Wants to Chain the World Together

Sergey Nazarov (Chainlink): The Man Who Wants to Chain the World Together

How Sergey Nazarov built the rails for a global internet of contracts — and why 2025 might be the year it all locks in.

Elina Moskovchuk
Monica Long: How Ripple’s Quiet Force Is Redrawing Crypto’s Map

Monica Long: How Ripple’s Quiet Force Is Redrawing Crypto’s Map

Ripple’s Monica Long isn’t chasing headlines—she’s quietly building crypto’s future. From payments to tokenization, here’s how she’s reshaping finance from the inside.

Elina Moskovchuk
Resistance levels: logic, methods, techniques

Resistance levels: logic, methods, techniques

Resistance levels are places where price struggles to move higher, often stalling or reversing after several attempts. Let’s learn how to find, draw and interact with them when trading.

The Coinomist
What Is Bitcoin Knots, a Fork by Luke Dashjr?

What Is Bitcoin Knots, a Fork by Luke Dashjr?

Bitcoin Knots (formerly Bitcoin LJR) is an alternative to Bitcoin Core, both allowing network participants to interact with the Bitcoin blockchain.

Anahit Avetisyan
How to Buy New Crypto Before Listing: A Step-by-Step Guide

How to Buy New Crypto Before Listing: A Step-by-Step Guide

Buying a cryptocurrency before it’s listed publicly has become one of the most talked-about strategies in the space, offering the potential for major upside—if done carefully.

The Coinomist
The Rise and Fall of Web3 Darlings: A Guide to Crypto Longevity

The Rise and Fall of Web3 Darlings: A Guide to Crypto Longevity

Most Web3 projects don’t collapse—they just stop being talked about. What makes one protocol a star and another a ghost? And why, in crypto, silence might signal transformation rather than failure?

Vlad Vovk
Beyond Profits: Understanding the Spiritual Side of Trading

Beyond Profits: Understanding the Spiritual Side of Trading

Are spiritual habits the missing link in trading psychology? For many, mindfulness and reflection offer a buffer against stress, reduce snap decisions, and aid in staying grounded through market volatility.

Vlad Vovk
How Cryptocurrency and Its Owners Are Tracked

How Cryptocurrency and Its Owners Are Tracked

Think blockchain is private? Wallets have no names and transfers seem untraceable — but that’s misleading. Discover how experts uncover wallet owners and link identities to transactions.

Vlad Vovk
Bitcoin Clings to $105K Backed by Institutional Buying and Record Derivatives Activity

Bitcoin Clings to $105K Backed by Institutional Buying and Record Derivatives Activity

Following a rally to $107K and subsequent correction, Bitcoin remains steady at $105K thanks to persistent institutional demand and unprecedented open interest across major exchanges.

Anton Kryshtal
Bitcoin Peaks at $107K Before Slipping Under $105K—Then Whales Pulled the Plug

Bitcoin Peaks at $107K Before Slipping Under $105K—Then Whales Pulled the Plug

The rally didn’t last. Bitcoin tumbled under $105,000 after market manipulation unleashed a cascade of liquidations worth hundreds of millions.

Anton Kryshtal
MORE
Earning by Habit: How Crypto Weaves into Everyday Actions

Earning by Habit: How Crypto Weaves into Everyday Actions

You can now earn crypto tokens for your most routine daily habits — shopping, working out, or grabbing breakfast at a café. But how does it actually work?

Yara Zornell
Valletta: How Blockchain Became a Growth Engine for the Island of the Hospitallers

Valletta: How Blockchain Became a Growth Engine for the Island of the Hospitallers

Malta attracts crypto companies from around the world — flexible regulation, low taxes, and a prestigious European jurisdiction have turned the small city of Valletta into a land of opportunity.

Iaroslava Kramarenko
MORE