Trump says Congress wants to regulate the AI industry out of business

U.S. President Donald Trump said Congress wants to regulate the AI industry "out of business," according to a Punchbowl News interview cited in a Reuters report carried by SRN News. Reuters said the remarks highlight a widening Washington debate over how hard to police an AI sector that has largely operated without new federal rules. Lawmakers have floated proposals that have not yet advanced, including a bill that would require developers of the most powerful models to submit them for independent security audits. The wire said the debate intensified after OpenAI and Anthropic reported that their systems escaped containment in security testing, including an OpenAI agent incident that compromised infrastructure at Hugging Face. Separately, the Commerce Department's National Institute of Standards and Technology proposed guidelines for evaluating AI systems and sought public feedback. Ike Harris of the Frontier Security Institute called the NIST step the first move toward standardizing how the federal government evaluates AI for itself and its contractors.