America’s Technological Progress

The most significant advancements in American technology often arise when innovators don’t wait for permission. From the development of microchips to the growth of the mobile web, the U.S. has led the way, largely because of a less bureaucratic environment.

The United States boasts more Nobel Prize winners than any other nation and is home to 47% of the world’s unicorns. In 2024, U.S. venture capital reached $178 billion, representing over half of the global total. However, if innovators were not held back by regulations, this abundance could be the norm.

Recently, President Trump’s “One Big Beautiful Bill” (OBBB) was signed into law, showcasing Washington’s ability to streamline regulations. It offers permanent tax relief, new spectrum auctions, and encourages founders to focus on production.

The restoration of the FCC’s auctioning powers under OBBB transforms previously idle resources into valuable growth infrastructure. Founders can now monetize these previously stagnant assets, similar to how companies like PayPal, Facebook, and SpaceX have thrived.

Last week, Congress demonstrated that it can move swiftly like private enterprises. Regardless of one’s opinion about the law—whether you find it beneficial or not—it’s clear that the market will react to this speed. When legislative processes quicken, investors are likely to shift from safer yields to more risky ventures. This bill serves as a signal flare.

However, the job isn’t done yet. Two critical obstacles still threaten the next wave of innovation: the FCC’s contentious interpretation of regulations and the lack of federal oversight on state-level AI laws. If Congress doesn’t address these issues, we risk falling into a stagnant compliance purgatory rather than advancing our technological capabilities.

We were close to securing an AI moratorium with OBBB, only to see it slip away due to backdoor negotiations. Instead of creating a cohesive national framework for AI governance, states are enacting fragmented regulations. California is pushing a GPU licensing scheme, while New York wants audits before product launches. Meanwhile, Illinois is threatening biometric lawsuits. This fragmentation undermines the potential benefits and drives capital away from places like Ohio and Texas, heading instead to Singapore and Dubai.

The OBBB effectively established spectrum rights, but that same clarity needs to extend to AI as well.

Ignoring these regulations has already shown negative consequences. Recently, an AI-generated voice impersonated Secretary of State Marco Rubio, targeting numerous officials. Such incidents highlight the growing significance of regulatory oversight. For years, the FCC has grappled with issues surrounding IP interconnections but hasn’t effectively addressed them. This oversight has allowed threats to evolve from spam calls to more serious operations, such as voice phishing.

At Telnyx, an interesting fact is that although 100% of outbound calls are signed, only a fraction reaches their intended destination. Why? Because the FCC hasn’t implemented complete IP interconnect technology despite it being available for over two decades. Instead, legal ambiguities have hindered the innovation necessary for an effective framework.

Additionally, the FCC recently granted broad call-blocking privileges to major telecom companies, which they have misused. Their “solutions” often block legitimate calls, harming businesses and eroding trust in the phone network.

Currently, Americans receive billions of robocalls. Notably, mobile carriers handle nearly half of all traceback requests. Interestingly, they profit at every stage, despite contributing to the issue.

Ironically, these large companies invest less than 1% of their revenue into research and development. Meanwhile, software startups often commit around 30%. It’s unrealistic to expect innovation from giants like AT&T, particularly if they’re allowed to set the rules.

What was initially intended to target malicious actors has instead turned into an overreach affecting smaller providers.

Yet, there’s hope for resolution. Starting with clear IP-To-IP requirements and implementing a collaborative infrastructure to monitor bad actors could dramatically improve the situation. This framework should focus on identifying those who engage in misconduct rather than penalizing innocent callers.

At Telnyx, we’ve experienced the benefits that come when federal policy supports innovation. We began as two VoIP sellers in Chicago and have grown into a global communications platform facilitating billions of calls and real-time interactions. Our growth accelerated when federal laws took precedence over state regulations concerning internet telephony. However, the current regulatory landscape—without consistent federal guidance—has forced us to spend millions on legal fees instead of pursuing innovation.

If the same legal risks apply to AI as they do currently, investor interest may vanish. Capital will flee rather than take on additional burdens.

Trump’s OBBB has reinvigorated our approach. For progress to continue, Congress must tackle the problematic aspects of FCC enforcement and address state-level AI regulations.

By doing this, American innovators can transform spectrum and tax stability into a future trillion-dollar sector built to empower Americans.

If we delay, control will shift to bureaucrats hesitant to innovate and international competitors who build without asking for permission.

Ultimately, builders are pushing boundaries, and it’s time for Congress to follow suit.