This week’s technology policy landscape reflects a familiar Washington tension: rapid innovation colliding with regulatory, economic, and national security concerns. From Capitol Hill hearings on quantum leadership, foreign-linked infrastructure risks, and border inspection technologies, to administration efforts to manage AI-driven energy demand, crypto’s growing leverage over Congress, and states testing the boundaries of AI regulation, policymakers are navigating how—and where—to set durable rules. Add in evolving liability theories for social media platforms and a new approach to semiconductor trade with China, and the throughline is clear: technology policy is increasingly shaping core debates on markets, security, and governance. Below is a concise look at the developments and hearings setting the tone for the week ahead.

In this week’s Nimitz Tech:

• Crypto & Financial Regulation: A single objection from Coinbase was enough to halt Senate action on crypto regulation, underscoring the industry’s growing power in Washington.

• AI & Energy: The White House and states move to shift the rising energy costs of AI data centers from ratepayers to Big Tech, testing how far regulators can go to manage AI’s infrastructure footprint.

• Social Media Liability: Snap’s last-minute settlement sidesteps a landmark trial that could have reshaped how courts assess liability for addictive social media design.

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, January 21st

• House Judiciary Subcommittee on Oversight: “Embedded Threats: Foreign Ownership, Hidden Hardware, and Licensing Failures in America’s Transportation Systems” at 2:00pm. Watch here.

Thursday, January 22nd

• House Science, Space, and Technology: “Assessing U.S. Leadership in Quantum Science and Technology” at 10:00am. Watch here.

• House Homeland Security Subcommittee on Border Security and Enforcement: “Smarter Borders, Safer Nation: Expanding the Use of Non-Intrusive Inspection Technology” at 10:00am. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• The Trump administration announced a coordinated federal–state effort to prevent the rapid expansion of artificial-intelligence data centers from driving up electricity bills for consumers, as surging demand from power-hungry AI infrastructure strains the grid. Federal officials said they would press PJM Interconnection—the nation’s largest power grid operator—to require major technology companies, including Meta Platforms, Google, and OpenAI, to shoulder more of the costs associated with expanding electricity supply. The move comes as average electricity bills rose about 5 percent year over year, according to federal data, fueled in part by the boom in data-center construction. While administration officials, including Interior Secretary Doug Burgum, framed the initiative as protecting ratepayers, experts cautioned that regulatory changes and new generation investments could take years to ease prices. The announcement also highlighted the growing political sensitivity of AI-driven energy demand, drawing bipartisan support from governors across PJM states as voters increasingly link data-center growth to higher local energy costs.

• Coinbase demonstrated its growing influence over U.S. technology and financial policy after its chief executive, Brian Armstrong, publicly withdrew support for the Senate’s long-negotiated Clarity Act, prompting lawmakers to abruptly cancel a scheduled committee vote. The episode underscored how the crypto industry—newly empowered under President Donald Trump—has become a central force in Washington, aided by extensive political spending and a friendlier regulatory environment following the Securities and Exchange Commission’s decision to drop enforcement actions against major crypto firms. Armstrong objected to late-stage bill language that could restrict Coinbase products and expand the authority of the Securities and Exchange Commission, while banking lobbyists pushed provisions limiting crypto firms’ ability to offer interest-like incentives. The stalled vote highlights both the fragility of bipartisan crypto legislation and the degree to which industry actors can now shape the trajectory of federal digital-asset regulation.

National

• Snap Inc. reached a last-minute settlement in a social media addiction lawsuit, avoiding what would have been the first trial to test a sweeping new legal theory that platforms are inherently defective and subject to personal-injury liability. The case, brought by a teenager alleging compulsive use and resulting mental-health harms, is part of a broader wave of lawsuits against major platforms including Meta Platforms, TikTok, and YouTube, modeled in part on tobacco litigation. Plaintiffs argue that design features such as infinite scroll, autoplay, and algorithmic recommendations intentionally promote addiction, imposing costs on young users, schools, and states. While settlement terms were not disclosed and Snap remains a defendant in other cases, the resolution spares its CEO, Evan Spiegel, from testifying in a closely watched trial that could have set a powerful precedent as courts weigh whether these claims can overcome industry defenses grounded in science disputes and free-speech protections, defenses also expected from executives such as Mark Zuckerberg.

• Florida lawmakers are advancing a sweeping proposal to regulate artificial intelligence that would expand parental control rights, restrict government use of AI tied to foreign adversaries, and require transparency when consumers interact with AI systems. Under Senate Bill 482, backed by Gov. Ron DeSantis, parents would gain legal authority to supervise and limit their children’s AI use, while state and local agencies would be barred from deploying AI products linked to governments of concern such as China. The bill builds on Florida’s recent track record of aggressive tech regulation, including disclosure requirements for AI-generated political ads and criminal penalties for nonconsensual AI-generated pornography. However, the proposal has triggered pushback from both President Donald Trump—who has called for AI regulation to remain exclusively federal—and major technology companies, which warn that fragmented state laws could hinder innovation and online expression. The legislation now heads to additional committee reviews before a potential vote on the Senate floor.

International

• President Donald Trump announced a novel, narrowly tailored semiconductor tariff aimed at addressing U.S. reliance on foreign chip manufacturing while preserving access to advanced AI hardware. The administration imposed a 25 percent tariff on a limited category of high-end semiconductors made abroad by U.S. firms such as Nvidia and AMD, but only when those chips are imported into the United States and then reexported to foreign customers, notably China; chips used domestically are exempt. The policy reflects a careful balancing act between national security concerns, the desire to encourage domestic chip production, and the practical need of the U.S. artificial intelligence sector to rely on overseas manufacturing, particularly in Taiwan. Analysts describe the approach as unprecedented, effectively allowing the U.S. government to capture a share of profits from advanced chip exports without directly violating constitutional prohibitions on export taxes, while also heading off more aggressive congressional action and creating leverage in negotiations with foreign semiconductor partners.

Just for Fun

DC’s famous biannual Restaurant Week is happening now. Here’s a link to the current participating restaurants.

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