Payward, the parent company of crypto exchange Kraken, has officially endorsed the White House's latest artificial intelligence policy framework. The framework aims to create a unified national standard, replacing the current patchwork of state-by-state regulations. Payward emphasized that federal clarity would significantly lower compliance costs and operational barriers, allowing AI companies to scale faster.
White House Unified Framework Ends State Fragmentation
The policy's core premise is consistency. U.S. states previously regulated AI in divergent ways, forcing firms to navigate dozens of different local rules — inflating legal and compliance overhead. Payward argued that fragmentation isn't just a regulatory headache; it becomes a systemic chokepoint. From deployment to data flow and capital allocation, friction accumulates. A standardized federal approach can slash those frictions, redirecting resources from rule-chasing to technology expansion.
Payward Co-CEO Arjun Sethi went further in a detailed statement. He framed AI not as a mere application-layer technology but as “a foundational infrastructure layer, analogous to compute, networking, and financial rails.” At scale, he warned, fragmentation does more than double compliance costs — it creates “chokepoints on system performance, introducing friction across deployment, data, and capital allocation.” Sethi argued that the country with clear, forward-looking AI rules will dominate the next generation of digital economic systems.
Sethi: AI Is Infrastructure, Fragmentation Stalls Performance
Sethi's analogy carries weight: placing AI alongside computing networks and payment rails elevates it to the same fundamental level as electricity or communications. He warned that if the U.S. remains bogged down by state-level fragmentation, “system performance will stall, directly discouraging investment.” A unified federal policy, he added, is not optional — it's a prerequisite for the U.S. to stay competitive globally.
Payward reaffirmed its commitment to “responsible innovation” across AI, blockchain, and financial solutions, calling federal clarity a catalyst for cross-sector growth. Its subsidiary Kraken quickly echoed the stance on X: “AI will shape the next generation of financial and economic infrastructure. The stronger the policy foundation, the stronger America's ability to lead in the next era of technology and financial infrastructure.”
The White House framework also embeds societal safeguards and public safety standards alongside competitiveness and cost reduction. Payward sees this balance as correct — “innovation and prudent risk management go hand in hand.” Looking ahead, the company pledged continued collaboration with policymakers and peers, stating that “joint implementation of the framework will determine whether the U.S. achieves global technology leadership.”