AI Regulation Is Now
AI Regulation Is Now - The June 2, 2026 Federal Executive Order
The Trump Administration issued a new AI Executive Order today (reproduced below), seeking to prevent the uncontrolled development of dangerous new AI. The announcement sent AI stocks tumbling over 5%, as the public tries to get a handle on the impact of AI regulation, from an Administration that is Anti-regulation generally, and declined to issue regulation previously.
The AI threat must be real—real enough to warrant action even from those who prefer to keep government "out of the way."
AI Regulation – Life Imitates Science Fiction
Decades before the success of ChatGPT, Anthropic and other recent AI models, the dangers of AI were openly debated. Perhaps most famously, Isaac Asimov formulated the “Three Laws of Robotics”:
A robot may not injure a human being or, through inaction, allow a human being to come to harm.
A robot must obey the orders given it by human beings except where such orders would conflict with the First Law.
A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.
Put simply, Trump is starting with number 1 – The Executive Order is essentially saying, the AI must not injure Americans, or their government, in the specific area of cybersecurity. The Executive Order mobilizes new cyber defense and national security systems, and prioritized criminal sanctions against hackers using AI, in Section 2.
A Clearinghouse for AI
But perhaps most fascinating, in Section 2, the Executive Order initiates a clearinghouse for AI models having new, potentially dangerous capabilities, which it calls “Covered Frontier Models.” The clearinghouse is voluntary, at least for now, but AI companies will turn in new AI systems that are considered “Covered Frontier Models” for government evaluation prior to releasing them to the public.
“Advanced Cyber Capabilities”
While the White House did not fully define what a “Covered Frontier Model” is, it will not cover all new AI models, even if they have new, dangerous capabilities. The focus instead, at this stage, is on AI models with “advanced cyber capabilities,” meaning AI models that pose new threats to online computer security.
The Executive Order initiates a working group to better define what a “Covered Frontier Model” is. The working group includes the Secretary of War, through the Director of the NSA and the Secretary of Homeland Security, among others, to create “a classified benchmarking process to assess the advanced cyber capabilities of AI models and determine the threshold at which an AI model should be designated a ‘covered frontier model.’”
No timeline has been set for creating this benchmarking and definition of “Covered Frontier Model,” let alone when the clearinghouse will be created.
Some have expressed concern that the clearinghouse may later become mandatory, and that permitting may ultimately be required for the release of new AI models, in the future, miring innovation in a slow, bureaucratic process. But the Executive Order makes clear that, at least for now, the clearinghouse will be voluntary, and no such pre-release permits will be required or issued. See Section 3(c):
Nothing in this section shall be construed to authorize the creation of a mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models.
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The full text of President Trump’s June 2, 2026 AI Executive Order is provided below:
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1. Purpose. The United States continues to lead the world in Artificial Intelligence (AI) because of the enormous talent and innovation of our AI industry, and because we refuse to stifle this innovation with overly burdensome regulation. My Administration has unleashed tremendous technological growth and economic investment in AI by slashing the bureaucratic constraints that the prior administration placed on America’s AI developers and researchers, and by instead encouraging AI innovation and accelerating responsible AI adoption across government and industry.
Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies (agencies), and components. As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country. We will continue to lead an America First cybersecurity effort that enhances both our national security and our global AI dominance.
It is the policy of the United States to promote AI innovation and security by working collaboratively with the private sector to modernize government and private sector information systems and harden them against external threats; to protect American ingenuity and intellectual property from exploitation and theft by adversaries; and to cultivate America’s advanced AI-enabled capabilities.
Sec. 2. Upgrading American Systems for Advanced AI. (a) Within 30 days of the date of this order, the Committee on National Security Systems shall prioritize the cyber defense of National Security Systems, as defined in 44 U.S.C. 3552(b)(6)(A), by taking appropriate and expeditious action consistent with the purpose of this order.
(b) Within 30 days of the date of this order, the Secretary of War shall prioritize the cyber defense of Department of War information systems by taking appropriate and expeditious action consistent with the purpose of this order.
(c) Within 30 days of the date of this order, the Secretary of Homeland Security, through the Director of the Cybersecurity and Infrastructure Security Agency (CISA), in consultation with the Director of the Office of Management and Budget (OMB), the Assistant to the President for National Security Affairs, and the National Cyber Director, shall release Binding Operational Directives and other guidance as appropriate to:
(i) expedite and prioritize the cyber defense of civilian Federal Government information systems in order to protect our Nation’s vital functions;
(ii) establish or expand Federal programs and cybersecurity services that enhance AI-enabled defensive tools; and
(iii) facilitate access to cybersecurity tools and services including, where appropriate, covered frontier models for agencies, State and local authorities, and operators of critical infrastructure such as rural hospitals, community banks, and local utilities.
(d) Within 30 days of the date of this order, the Secretary of the Treasury, in consultation with the National Cyber Director, the Secretary of War, through the Director of the National Security Agency (NSA), and the Secretary of Homeland Security, through the Director of CISA, shall form an AI cybersecurity clearinghouse, in voluntary collaboration with the AI industry and operators of critical infrastructure, that coordinates and deconflicts scanning for software vulnerabilities, discovers and validates such vulnerabilities, and coordinates and prioritizes remediation and distribution of vulnerability patches.
(e) Within 30 days of the date of this order, the Director of OMB, in coordination with the National Cyber Director and the Director of CISA, shall determine whether any Federal grant programs have available and relevant funding that can be directed toward applicants developing advanced AI vulnerability detection.
(f) Within 60 days of the date of this order, the Director of the Office of Personnel Management shall expand the United States Tech Force Information Cybersecurity Specialist hiring and placement pathways.
Sec. 3. Secure Frontier Model Deployment. Within 60 days of the date of this order, the Secretary of the Treasury, the Secretary of War, through the Director of NSA, and the Secretary of Homeland Security, through the Director of CISA, in consultation with the White House Chief of Staff, through the National Cyber Director, the Assistant to the President for Science and Technology (APST), and the Secretary of Commerce, through the Director of the National Institute of Standards and Technology, and in coordination with other agencies, as appropriate, shall:
(a) develop and maintain a classified benchmarking process to assess the advanced cyber capabilities of AI models and determine the threshold at which an AI model should be designated a “covered frontier model” for the purposes of this order, sharing such assessments with AI developers and researchers as appropriate. Such a determination shall be made by the Director of NSA, in consultation with the National Cyber Director, the APST, the Director of CISA, and other representatives of the Department of War, as appropriate.
(b) design a voluntary framework with AI developers through which developers would be able to:
(i) engage the Federal Government to determine whether model(s) under development meet the designation of “covered frontier model”;
(ii) provide the Federal Government with access to covered frontier models, subject to appropriate confidentiality, cybersecurity, insider-risk, and intellectual-property protection, use, and nondisclosure requirements, for a period of up to 30 days before they plan to release such models to other trusted partners; and
(iii) collaborate with the Federal Government to select trusted partners that will have early access to covered frontier models to promote secure innovation and strengthen the cybersecurity of critical infrastructure.
(c) Nothing in this section shall be construed to authorize the creation of a mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models.
Sec. 4. Protection Against Criminal Actors. The Attorney General shall prioritize the enforcement of 18 U.S.C. 1028, 18 U.S.C. 1030, 18 U.S.C. 1343, and all other applicable Federal criminal laws against anyone who utilizes AI to illegally access or damage a computer without authorization, or who utilizes AI while engaged in such illegal access to further any other crime. This includes breaching any public or private information technology system, or employing AI agents to unlawfully access data or information that is subsequently used for a criminal or unlawful purpose.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of War.
DONALD J. TRUMP
THE WHITE HOUSE,
June 2, 2026.
