Trump’s Tech Chief Pushes Innovation via Deregulation and Strategic Research Reform

A New Vision for U.S. Technology Policy

In a high-profile address at the Endless Frontiers tech retreat in Austin, newly confirmed Director of Technology and Science Policy, Michael Kratsios, outlined a bold strategy aimed at reigniting American innovation. As the Trump administration resumes its influence on national policy, Kratsios—now a central figure shaping science and tech initiatives—used his first public speech post-confirmation to signal a seismic shift in priorities: less red tape, faster funding, and tighter cooperation between public and private sectors.

Kratsios did not hold back in his critique of past decades, especially targeting the Biden administration’s regulatory approach. He argued that innovation has slowed due to overregulation and bureaucratic bottlenecks, which he labeled the “chief barrier” to progress in technologies like flying cars and supersonic jets. With an eye on the 20th century’s golden era of breakthroughs, Kratsios made a case for returning to an innovation-first ethos.

the Original

Michael Kratsios, newly confirmed under the Trump administration as the head of tech and science policy, used his first public remarks to unveil a plan for revitalizing American innovation. Speaking at the Endless Frontiers retreat, he accused previous administrations—particularly Biden’s—of being paralyzed by fear, limiting the nation’s technological potential. Kratsios argued that the U.S. has become too complacent compared to the rapid progress seen in the 20th century.

Central to his policy framework is the reduction of what he sees as overbearing regulations, which he believes are holding back cutting-edge technologies like flying cars and supersonic aircraft. He called for the accelerated deployment of federal research funds and proposed alternatives to traditional grant structures, such as incentive prizes and expedited funding models—citing the COVID-19 response as a successful example.

Kratsios also stressed the importance of fostering collaboration between the federal government, private companies, and academia. He highlighted key areas such as artificial intelligence, quantum computing, biotechnology, and semiconductors as strategic priorities. One of his goals is to better connect early-stage researchers with investors and tech builders to ensure ideas don’t just stay in labs but get turned into commercially viable products.

Previously serving as Trump’s CTO, Kratsios returns to lead the Office of Science and Technology Policy, joined by Silicon Valley VC David Sacks, who is set to oversee the administration’s efforts in AI and cryptocurrency.

What Undercode Say:

Kratsios’ speech signals a calculated ideological return to the Reagan-era doctrine of “get government out of the way.” But this version is turbocharged for the 21st century—with AI, crypto, and biotech in the spotlight. His framing of regulation as the primary obstacle to innovation is a compelling political message but may oversimplify the complex checks and balances that keep emerging technologies safe and equitable.

Deregulation, particularly in high-risk sectors like autonomous flight or genetic editing, walks a fine line. Yes, fewer restrictions can unleash a burst of creativity and investment, but they also increase the risk of unintended consequences—both technological and ethical. Kratsios’ prioritization of “rapid deployment” of research dollars is an appealing antidote to government sluggishness, especially in contrast to Europe’s more conservative funding models. However, speed must not come at the cost of scrutiny.

His nod to alternative funding mechanisms—such as market commitments and innovation prizes—shows a deep understanding of Silicon Valley’s incentive culture. These approaches, proven effective during the COVID-19 crisis, could become a permanent feature in U.S. tech policy if Kratsios succeeds in institutionalizing them.

One of the more nuanced takeaways is his emphasis on building bridges between academia and industry. This recognizes a longstanding gap in American tech development: universities excel in basic research, but often lack the pathways to commercialization. Facilitating these connections could create a more cohesive ecosystem, accelerating time-to-market for U.S. inventions.

Kratsios is also clearly positioning the U.S. for a more aggressive stance in the ongoing tech race against China. By identifying frontier sectors like semiconductors and quantum computing as strategic targets, he’s echoing concerns across the West about dependency on foreign supply chains. His alliance with David Sacks also hints at a more crypto-friendly regulatory framework, something that could be a game-changer in both financial innovation and digital sovereignty.

Yet, the political undertones are unmistakable. The critique of Biden as leading with a “spirit of fear” isn’t just rhetorical—it’s meant to reignite a culture war around how America views risk, safety, and innovation. Whether this ideological posture translates into functional, responsible policy remains to be seen.

🔍 Fact Checker Results:

✅ Kratsios was confirmed to lead the OSTP in March 2025 under Trump’s reappointment.
✅ The speech took place at the Endless Frontiers event in Austin.
✅ David Sacks is involved in the Trump administration’s tech policy, specifically around AI and crypto.

📊 Prediction:

If Kratsios’ policy blueprint is enacted as outlined, we could witness a short-term surge in venture capital inflows to deep-tech startups, especially in sectors like quantum computing, hypersonic travel, and AI. Expect a new wave of deregulation bills and pilot programs within the next 12 months. However, this acceleration may trigger friction with regulatory agencies and civil liberties advocates concerned with oversight, safety, and fairness. The administration’s success will depend on its ability to balance speed with responsibility.