Trump Administration Revokes Biden-Era AI Semiconductor Export Controls

Political

Summary:

The Trump administration announced plans to repeal the Biden-era AI semiconductor export controls on May 14th. This policy shift is spearheaded by Jeffery Kessler from the U.S. Department of Commerce.

This move alters regulatory landscapes for tech giants while potentially reshaping infrastructure within AI and blockchain sectors.

Trump Scraps Semiconductor Export Controls Against Industry Pushback

The Trump administration has decided to revoke the Biden-era AI semiconductor export controls that faced opposition from industry leaders such as Nvidia and Oracle. Under the guidance of the U.S. Department of Commerce and Bureau of Industry and Security, the decision aims to ease regulatory burdens on American companies. Jeffery Kessler, Under Secretary of Commerce for Industry and Security, announced this initiative.

The rescinded AI Diffusion Rule would have imposed compliance requirements starting in 2025. Its cancellation is expected to alleviate constraints on U.S. tech firms and facilitate global business operations. The U.S. maintains stringent controls on Huawei AI chips to safeguard its tech industry.

The industry has generally reacted favorably to the repeal of the Biden-era regulations. This development is seen as aligning with the interests of businesses struggling under previous export restrictions. Kessler stated:

"The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries. At the same time, we reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people."

Policy Change May Influence Blockchain and AI Integration

Did you know? The U.S. implementation of semiconductor controls traces back to October 2022, focusing on curtailing transfers to China—a policy reversal here could reshape strategy.

Ethereum (ETH) is currently trading at $2,690.22, with a market cap of $324.79 billion. Though ETH observed an 8.43% rise in 24 hours, long-term analysis shows a mixed trend over 90 days, with a mild decrease of 1.40%. The cryptocurrency market, often indirectly influenced by tech sector dynamics, remains observant of broader industry changes.

Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 00:19 UTC on May 14, 2025.

The research team suggests that while immediate direct impacts on cryptocurrencies are limited, shifts in AI export regulations could indirectly influence blockchain infrastructure developments. Historical trends indicate that policy changes in related tech arenas can signal broader potential market adaptations.

Trump's crypto policy has been a topic of debate, often intersecting with traditional tech policies. The impacts on Coinbase's global outlook and other exchanges reflect how policies reverberate across sectors.

Source: CryptoSlate

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Latest news on the Israeli-Palestinian conflict

Political

The Israeli military has announced a major operation in Gaza, which has targeted Muhammad Sinwar, who took over as the head of Hamas in Gaza following the killing of his brother, the better known late Hamas leader Yahya Sinwar, in October.

Israeli jets targeted Sinwar during a major hospital strike in the southern Gaza Strip on Tuesday afternoon. The Israel Defense Forces (IDF) claimed in a statement that it hit senior leaders in an underground command center, described as below the European Hospital in Khan Younis.

Sinwar brothers, with the younger Muhammad Sinwar (right), via Fox News

The air raid saw at least nine bombs dropped, with the ground having utterly collapsed in the area of the strike, which suggests there will be high civilian casualties. The jets may have used large US-supplied bunker-busting bombs.

Indeed, the Times of Israel soon after reported that "The Hamas-run health ministry reported 16 dead and over 70 wounded in the strike, though there was no immediate word if Sinwar was among the casualties."

The IDF is still working to confirm whether Sinwar is among the dead. Israeli sources said there was a "small window of opportunity" for the strike given Hamas leaders are utilizing the vast tunnel network that exists under the hospital.

Israeli commanders shrugged off the international outrage and criticism over its jets targeting a hospital to go after a Hamas leader: The Hamas terror organization continues to use hospitals in the Gaza Strip for terror purposes, cynically and cruelly exploiting the civilian population in and around the hospital," the IDF said.

It was only on Monday that Hamas released the last Israeli-American hostage, Edan Alexander, after the Trump White House's mediation.

Prime Minister Netanyahu has since vowed to continue hostage negotiations, but stipulated these talks with Hamas would take place "under fire" - meaning there will be no accompanying truce.

Mohammed Sinwar was responsible for building up Hamas's military wing, and was close to the U.S.-designated terrorist group's top military commander, Mohammed Deif, who was killed by Israel last year. His brother Yahya, was the mastermind behind the Oct. 7, 2023, attack on southern Israel that launched the war. Israel killed three of Yahya Sinwar's top deputies throughout the war, including Deif, and Hamas's political head Ismail Haniyeh.

If Mohammed Sinwar is dead, it would mean that the most important Hamas leaders behind the Oct. 7 attack have been taken out by Israel. After the Oct. 7 attack, Israel vowed to kill all of Hamas's top leadership, including those abroad, and anyone who took part in or planned the attack.

Meanwhile, President Trump said from Saudi Arabia on Tuesday, "We continue to work to get that war ended as quickly as possible. It is a horrible thing that is taking place."

Recent reports say that tensions between Trump and Netanyahu are growing, given the Israeli leader's apparent reluctance to continue negotiating for the freedom of the remaining hostages. Netanyahu is instead pressing forward with a military solution.

Source: Zero Hedge

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Manuel

Cryptocurrency

Political

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on approving BlackRock's physical Bitcoin ETF, seeking public comments before proceeding further.

This postponement may influence future Bitcoin ETF structures and market dynamics for similar proposals.

SEC's Cautious Progress on Bitcoin ETF Proposals

The SEC announced its delay in deciding on BlackRock's Bitcoin ETF that plans to use a physical subscription mechanism. This move shifts from previous cash-based approaches toward a model where ETF shares can be transacted directly in Bitcoin. The SEC's decision to seek public opinions marks a significant moment in the ETF proposal process. On the same day, the SEC postponed decisions on Grayscale's Litecoin and Solana Trusts and 21Shares' Dogecoin ETF, indicating cautious progress in regulatory decisions.

This delay highlights a potential shift in ETF subscription/redemption mechanics, impacting how investors interact with such products. Enhanced transaction efficiency is a possible outcome if approved. Nasdaq has supported this model since January, aligning with BlackRock’s strategy for the iShares Bitcoin Trust. The potential for varying ETF methodologies reflects the growing importance of tailored models accommodating cryptocurrency’s unique traits.

The market’s response to these developments has mixed reactions. Investors and industry leaders await further clarity on SEC's stance. As Sui Chung, CEO of CF Benchmarks, previously remarked, "Spot ETF approval today is a true milestone moment for the crypto asset class ... it stands to open bitcoin up to a much broader swathe of investors." These decisions could drive substantial market interest, especially if new models gain regulatory clearance.

Bitcoin Price Soars 24.61% Amid Regulatory Delays

Did you know? The regulatory journey of spot Bitcoin ETFs experienced a breakthrough in January 2024, when a court ruling mandated the SEC to revisit its stance, aligning ETF approvals with futures models and addressing prior discrepancies.

According to CoinMarketCap, Bitcoin currently trades at $104,155.43, with a market cap reaching $2 trillion and a 24-hour volume of $52.53 billion. The cryptocurrency has seen a 30-day price increase of 24.61% and holds a market dominance at 61.18%. This data indicates consistent investor interest despite recent regulatory uncertainties.

Insights from Coincu's research team suggest that these regulatory moves could redefine product frameworks, with possible implications for related altcoins like Litecoin and Solana if in-kind models see approval. Legal, financial, and technological outcomes remain closely tied to ongoing public feedback and regulatory choices.

Source: Coincu

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Manuel

Economic

China–U.S. Trade War

Online shoppers in the U.S. will see a price break on their purchases valued at less than $800 and shipped from China after the Trump administration reached a truce with Beijing over sky-high tariffs.

An executive order Monday from President Donald Trump said the tariffs on low-value parcels originating from China and coming through the U.S. Postal Service will be lowered to 54%, down from 120%.

It also says a per-package flat rate — as an alternative to the value-based tariff — will be kept at $100, rather than being raised to $200 on June 1 as previously decreed. Packages shipped by commercial carriers are subject to the general tariff, which also has been cut.

The new rules go into effect Wednesday.

They are part of a broader agreement by the Trump administration to drastically lower import taxes on all Chinese goods from 145% to 30% following weekend talks in Switzerland with Chinese officials. China issued a public notice on Tuesday lowering its own tariffs on U.S. goods to 10%, down from 125%.

However, the reductions are temporary, allowing the two sides to negotiate a longer-term deal in the next 90 days.

Izzy Rosenzweig, founder and CEO of the logistic company Portless, said U.S. brands are “very excited” about the broader tariff cut. The import tax is still high, but not as prohibitive as when it was 145%, which amounted to a trade embargo.

On the low-value shipments, online purchases had been coming into the U.S. duty-free for several years under the de minimis rule, which exempted them from the import tax.

Popular shopping sites such as Shein and Temu that offer ultra-low prices took advantage of the duty-free rule by shipping directly from China to U.S. buyers, bypassing more cumbersome customs paperwork.

President Donald Trump terminated the exemption on such parcels originating from China and Hong Kong on May 2, following criticism that it not only resulted in lost tariff revenue but also allowed illicit drugs and unsafe products to flow into the U.S. without adequate scrutiny.

U.S. Customs and Border Protection said as many as 4 million low-value parcels were coming into the U.S. every day — many of which originated from China.

Shortly before the exemption ended on May 2, prices on many items sold by Shein rose. Temu apparently halted shipments from China and tapped its existing inventory in the U.S.

John Lash, group vice president of product strategy at the supply chain platform e2open, said he expected the volume of low-value packages would now rise but not back to previous levels. The $100 flat rate, he said, means that higher-value packages could get less of a hit, because the effective duty rate could be as low as 13%.

Neither Shein nor Temu immediately responded to requests for comment Tuesday about the lower tariffs.

Source: AP

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Commodity

Russia-Ukraine Conflict

Ukraine has concluded procedures for implementation of a deal with the United States on exploiting minerals, including the operation of an investment fund, the country's first deputy prime minister said on Tuesday.

Yulia Svyrydenko gave few details of the latest step in securing approval of the accord, promoted by U.S. President Donald Trump, but it was known that two additional documents were drawn up as part of its implementation.

"Another milestone on the path to launching the United States-Ukraine Reconstruction Investment Fund: Ukraine has completed all necessary procedures on schedule," Svyrydenko wrote in English on social media.

She said a note certifying completion of the process had been handed to interim U.S. Charge d'Affaires Julie Davis.

"These are equal agreements — forward-looking, aligned with Ukraine's national interests, and structured to ensure investment flows exclusively into Ukraine’s recovery and growth," Svyrydenko wrote.

After weeks of tough negotiations following a shouting match between President Volodymyr Zelenskiy and Trump in the Oval Office, Svyrydenko signed the minerals agreement in Washington and it was ratified last week by the Ukrainian parliament.

After that vote, Svyrydenko described the accord as "not merely a legal construct — it is the foundation of a new model of interaction with a key strategic partner."

The minerals agreement hands the United States preferential access to new Ukrainian minerals deals and sets up the investment fund, which could be used for the reconstruction of Ukraine for the first 10 years.

Ukraine also sees the deal as a way to unlock supplies of new U.S. weapons, especially additional Patriot air defence systems it sees as vital to protect against Russian air attacks.

Zelenskiy hailed the reworked draft of the agreement as a marked improvement over earlier versions that some critics in Ukraine had denounced as "colonial." The accord also acknowledges Ukraine's bid to join the European Union.

Source: Reuters

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Stocks

Cryptocurrency

Coinbase (COIN) stock surged nearly 24% on Tuesday as Wall Street cheered the inclusion of the first and only crypto exchange in the S&P 500 (^GSPC) — a major milestone for the company and an industry once in the crosshairs of regulators.

"Coinbase has gone from being in an intense litigation with the SEC just a few months back (later dropped by the SEC under the Trump regime) to being the latest addition to S&P 500," Bernstein managing director Gautam Chhugani wrote on Tuesday morning.

"This event symbolises the dramatic turnaround in fortunes for the crypto industry and its rising significance as the frontier of financial innovation," he added. Coinbase Stock Soars 24% as Inclusion in S&P 500 Signals "Dramatic Turnaround' for Crypto Industry_1

Coinbase Stock Soars 24% as Inclusion in S&P 500 Signals "Dramatic Turnaround' for Crypto Industry_1

The significance of formally joining the S&P 500 on May 19 was not lost on company executives either.

"This is a major milestone, not just for Coinbase, but also for the entire crypto industry," wrote Alesia Haas, Coinbase's CFO, on Monday afternoon. "Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading."

The announcement came days after Bitcoin (BTC-USD) crossed the $100,000 level to reach its highest level since late January.

The cryptocurrency has rallied since President Trump won the White House last year and put in place key figures to forge ahead with a token-friendly framework, a promise on which he campaigned.

One of those moves included placing cryptocurrency advocate Paul Atkins at the helm of the SEC after Gary Gensler stepped down on Jan. 20.

In late February, Coinbase announced the SEC had agreed to drop its enforcement case against the company.

Under Gensler, the agency had charged Coinbase with operating as an unregistered national securities exchange, broker, and clearing agency.

Coinbase shares rallied to all-time highs in December, surging 90% since Trump's election. The stock declined to pre-election levels in April as the overall market sank following Trump's tariff policy unveiling.

Year to date, Coinbase shares are up more than 3%.

Bernstein has a Buy rating on the stock with a $310 price target. The analysts point to the crypto exchange's $320 billion in assets with around 10 million active users.

"With the Trump Administration’s aspiration to make America the ‘crypto capital of the world’, Coinbase remains the dominant platform (66% U.S market share) to ride the tailwinds," wrote Chhugani.

Source: Yahoo Finance

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Economic

Bond

Treasury debt slipped as gains for US stocks reinforced the broadening conviction on Wall Street that Federal Reserve interest-rate cuts are unlikely before December.

The US government bond market erased gains that were spurred by April inflation data that showed smaller increases in consumer prices than economists estimated. The two-year note’s yield, more sensitive than longer maturities to expected changes in the Fed’s rate, was little changed at about 4.02% after earlier dipping to 3.95%.

While derivative contracts continue to price in two quarter-point rate cuts by the Fed this year, several major Wall Street banks this week forecast a rate cut in December, later than they previously anticipated. The changes were based on the US trade truce with China announced Monday, which along with comments by President Donald Trump during a US-Saudi investment forum in Riyadh drove gains for US stocks.

“Some money is moving out of Treasuries and into risk assets,” said Tony Farren, managing director in rates sales and trading at Mischler Financial Group. “It’s a bit of a momentum trade for now.”

Trump said Saudi Arabia would commit to investing $1 trillion in the US and predicted further gains for the stock market.

Also contributing to the selloff, Farren said, is investor concern about the US fiscal outlook. On Monday, the Republican majority in the House of Representatives unveiled a draft tax bill that’s estimated to result in a $3.7 trillion revenue loss over 10 years.

“The other big part of the inflation story going forward is the fiscal stimulus that’s beginning to emerge on Capitol Hill,” David Kelly, chief global strategist at JPMorgan Asset Management, said on Bloomberg Television. “Inflation’s going to move up in the short run because of tariffs, and then in 2026 because of renewed fiscal stimulus.”

Yields on 10- to 30-year bonds climbed by several basis points to the highest levels in a month. In the interest-rate options market, traders showed a bias for wagers that profit if long-maturity yields rise. The Bloomberg Dollar Spot Index fell 0.5%, erasing about half of its Monday gain.

A heavy slate of new investment-grade corporate bonds — another sign that investors are embracing risk after avoiding it for several weeks after the trade war broke out in early April — was also a factor.

Meanwhile, the inflation outlook remains cloudy, despite the April consumer price index data.

While the Trump administration’s tariffs are widely expected to boost inflation, companies may still be working their way through a massive stockpile of built-up inventory before resorting to raising prices.

“The bond market still has concern over stability of core goods prices in the coming two data cycles.” said Ian Pollick, head of fixed income, commodities and currency strategy at CIBC. “And given the Fed requires the labor market to turn prior to easing, a weaker print today matters very little for the level of yields.”

Even before the release of the CPI data — which had the potential to affect expectations for when the Fed might resume the rate cuts it began last year — several big-bank economists this week became less sanguine about the prospect of lower rates.

Goldman Sachs on Monday projected a cut in December, a change from July, and less frequent subsequent cuts. Barclays also changed also changed to December from July, and JPMorgan Chase & Co. revised its call to December from September. Citigroup economists shifted their prediction to July from June.

Trade tensions may yet prove damaging to the US economy, even as the temporary reprieve has been a boon to sentiment.

“On balance, particularly for the Fed as well, it does mean somewhat slower growth,” Michael Pyle, deputy head of BlackRock Inc.’s portfolio management group, said on Bloomberg Television. “The tariffs that remain will have to be absorbed either in prices or margins, and that changes the outlook for what we can expect in terms of growth and profitability in the US.”

Source: Bloomberg

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Trump Administration Revokes Biden-Era AI Semiconductor Export Controls

Trump Scraps Semiconductor Export Controls Against Industry Pushback