Rep. Stephen F. Lynch (D-MA) urged Treasury Secretary Scott Bessent to use Treasury resources to investigate the existential risks posed by artificial intelligence, warning that the administration’s approach could repeat regulatory failures associated with the crypto industry. Lynch cited between $200 million and $250 million in crypto-industry lobbying expenditures and argued that allowing companies to write their own rules had harmed everyday consumers. He also criticized the Trump administration’s AI Action Plan for dismantling consumer protections and weakening state-level oversight by rescinding earlier directives. Bessent emphasized geopolitical competition with China, saying the United States currently controls between 55% and 60% of global compute power and aiming to raise that share to 80% by 2028. He favors voluntary industry guidelines over prescriptive regulation and has highlighted AI-related cybersecurity, including the technology’s new attack surfaces and defensive benefits. The exchange reflected broader Democratic criticism that the administration’s AI Action Plan has rolled back oversight, while state regulations face potential federal preemption challenges. The hearing also contrasted Bessent’s focus on compute power, patents and talent acquisition with Lynch’s emphasis on preventing consumer harm.