In a significant legislative move, the US Senate has approved the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2026 (GAIN Act) as part of the National Defense Authorization Act, which, as stated in the official source, is set to reshape the landscape for AI and chip manufacturing in the United States.
GAIN Act Overview
The GAIN Act mandates that AI and high-performance chip manufacturers prioritize domestic orders over exports, a decision aimed at alleviating the persistent supply chain issues that US companies have been facing. By ensuring that local firms receive their necessary components first, the legislation seeks to bolster the domestic tech industry and enhance national security.
Congressional Powers and Export Licenses
Additionally, the act empowers Congress to deny export licenses for high-end AI processors, giving lawmakers greater control over the distribution of advanced technology. Furthermore, it requires export licenses for all products that incorporate advanced integrated circuits, thereby tightening regulations on the international trade of critical tech components.
Significance of the GAIN Act
This comprehensive approach reflects a growing recognition of the importance of maintaining a robust domestic supply chain in the face of global competition.
While the US Senate has made strides in AI legislation with the GAIN Act, the U.S. Securities and Exchange Commission has postponed its decision on the Grayscale ADA ETF application, now set for October 26th. For more details, read more.
