Hello. At a House subcommittee hearing Wednesday, GOP lawmakers argued that allowing states to govern the use of artificial intelligence would result in a patchwork of laws that stifle innovation and threaten national security. Instead, they are pushing for a decadelong moratorium on state AI laws, giving Congress enough runway to get federal regulations in place.

That’s not just talk. The moratorium is part of the House Energy and Commerce Committee’s sweeping budget bill taken up last week. But with federal efforts largely at a standstill, opponents say barring state AI laws is putting the cart before the horse.

And that’s risky, Justine Phillips, co-chair of law firm Baker McKenzie’s North America data and cyber practice group, tells WSJ Pro: “As quickly as businesses are implementing AI, threat actors are finding ways to exploit it.”

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Also Today:

• Marks & Spencer Takes $400 Million Hit
• Rhode Island Reveals Hack Details
• Golden Corral Settlement Approved

Rhode Island Reveals RIBridges Hack Details. A CrowdStrike analysis found a 2024 data breach spanned five months and impacted roughly 644,400 people, among other findings. RIBridges, operated by Deloitte, is a system used by the state to administer social services benefits. (Tech Target)

Could Coinbase Hack Turn Deadly? In an X post, TechCrunch founder Michael Arrington said cybercriminals using personal data stolen in the exchange’s massive breach to target large crypto investors will “lead to people dying,” calling for stronger protections for users. (TechSpot)

Golden Corral Settlement Approved. The Raleigh, N.C.-based restaurant chain’s $1.85 million settlement stemming from a 2023 data breach, which may have impacted over 180,000 individuals, received final approval from a federal judge. (Bloomberg)
 

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash, and reporters James Rundle, Catherine Stupp and Angus Loten. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.