Regulatory battles are intensifying across U.S. states over artificial intelligence governance. Despite federal-level pushback, individual states are aggressively advancing their own AI legislation—creating a patchwork of conflicting rules and compliance challenges. This fragmented approach raises critical questions: Will states continue to diverge on AI standards? What happens when federal and state mandates clash? Without congressional intervention, the U.S. could face prolonged regulatory uncertainty, similar to past crypto and fintech jurisdictional disputes. The outcome will likely reshape how tech companies—including those in the blockchain and decentralized finance space—navigate compliance across different states. Market participants should watch this closely, as regulatory clarity (or lack thereof) historically impacts innovation cycles and institutional adoption.