On September 24, 2025, Covington’s tech industry experts explored what legal teams, government affairs professionals, and business leaders at tech companies need to know during this pivotal period and offered insights into anticipated challenges and emerging opportunities in the year ahead. Eight Covington attorneys shared their insights during a 60-minute session moderated by Covington partner Holly Fechner. Key takeaways from the Forum are outlined below.

Overview & Highlights of the Tech Policy in the Administration & Congress

Covington attorneys Bill Wichterman and Paul Ray addressed the reality that tech is both loved and hated—often at the same time—by policymakers on both ends of Pennsylvania Avenue and in both parties. This dynamic has produced mixed policy results, depending on the issue. When it comes to deregulation, AI, and taxes, many tech companies have been encouraged, but export controls and content moderation remain concerns. Areas like patent policy are received differently depending on individual companies’ business models. Tech is likely to remain near the center of this swirling vortex for the foreseeable future.

Artificial Intelligence

Covington attorney Matthew Shapanka addressed the federal and state legislative landscapes on artificial intelligence.  While members of Congress have introduced more than 200 bills referencing AI, released several AI-related frameworks, and held many dozens of hearings on AI-related topics, Congress does not appear closer to enacting comprehensive AI governance rules. Matt also discussed the Trump Administration’s AI Action Plan, released in July, and the “light touch” regulatory framework released by Senate Commerce Committee Chair Ted Cruz (R-TX), which largely tracks the President’s AI Action Plan. Meanwhile, legislators in all 50 states introduced bills in 2025 on AI-related topics, with 38 states enacting more than 100 bills so far this year, including significant AI governance bills in California, New York, and Texas. Congress also failed to enact legislation earlier this year that would have “paused” state laws regulating AI while national rules are developed.  Still, as the states continue to enact and implement all manner of AI legislation, Senator Cruz and other members of Congress, including House Energy & Commerce Committee Chair Brett Guthrie (R-KY) have pledged to continue pushing for a moratorium on state AI laws, with or without a federal alternative. 

Privacy & Content Moderation

Covington attorney Nick Xenakis addressed the ongoing regulatory focus on privacy and content moderation, noting that these issues remain top priorities at both federal and state levels, with increasing attention on foreign regulation and its implications for U.S. companies. Under the Trump Administration, content moderation efforts focused on curbing perceived bias and promoting free speech, often intersecting with debates around the appropriate scope of Section 230 of the Communications Decency Act. Today, the rise of artificial intelligence adds new complexity, as regulators and Congress consider how automated systems influence moderation decisions and consumer protection. While comprehensive federal privacy legislation continues to be a perennial topic, its prospects remain uncertain given political dynamics and competing priorities—making proactive compliance and engagement with agencies such as the FTC and state attorneys general essential for businesses deploying new products or platforms.

Trade Controls

Covington attorney Stephen Bartenstein addressed the evolution of U.S. export controls and sanctions policy under the Trump Administration and what may be on the horizon.  Steve discussed the Trump Administration’s announced plans to rescind and replace the AI diffusion export controls rule, as well as the potential expansion of Entity List export control restrictions to reach entities owned 50% or more by parties on the Entity List. (Several days after the Webinar, on September 29, the U.S. Commerce Department’s Bureau of Industry and Security issued a new rule expanding end-user export controls to reach non-U.S. entities owned 50% or more by parties on the Entity List and certain other restricted party lists, as discussed in our client alert here.) In addition, Steve described how the Trump Administration recently lifted comprehensive sanctions and eased export control restrictions on Syria, used sanctions authorities in recent months to target a number of additional parties for comprehensive property blocking sanctions, and designated narcotrafficking organizations as Foreign Terrorist Organizations.

National Security

Covington attorney Ingrid Price addressed the evolving national security regulatory landscape, emphasizing that recent rules—including the DOJ Data Security Program, the Treasury Department’s Outbound Investment Rule, and the Commerce Department’s Connected Vehicle Rule—reflect the U.S. government’s broader strategy to de-risk vis-à-vis China. These regulations impact cross-border investments, supply chain integrity, and data security, creating new compliance obligations for companies operating in sensitive sectors such as advanced technology, ICTS, and connected vehicles. While developed under the Biden Administration, these measures remain in effect and signal continued scrutiny of technology transactions involving U.S. and China. Companies should proactively assess vendor relationships, investment structures, and product design to ensure compliance, as regulatory expectations continue to evolve in this area.

Trade Policy & Tariffs

Covington attorney Kate McNulty addressed recent trade policy developments and related challenges for the tech sector, including the aggressive use by the Trump administration of tariffs and related-trade threats as tools for advancing policy objectives aimed at reshoring U.S. manufacturing and promoting increased U.S. investments in strategically significant sectors.  Invoking national security rationales, the Trump administration has announced forthcoming sectoral tariffs on a range of critical technology products, including—among others—semiconductors, drones, and processed critical, while also threatening substantial tariffs on countries that regulate or tax U.S. digital technology companies.  Recommendations for companies in this space include developing risk assessment and mitigation strategies around potential new tariffs, monitoring relevant developments, and considering possible opportunities for tariff relief.

Implications for China

Covington attorney Christopher Adams discussed the shifting dynamics of the U.S.-China relationship in 2025, noting that many recent U.S. policy and regulatory actions have been driven by strategic competition with China. In response, China has adopted a more assertive posture, seeking to counterbalance U.S. measures while signaling confidence in its economic resilience. Factors shaping the trajectory include evolving trade negotiations, technology restrictions, and geopolitical considerations, leaving the relationship in a holding pattern as the Trump Administration leans toward deal-making over traditional national security concerns. For multinational companies, these developments are influencing investment decisions, supply chain strategies, and risk assessments. Businesses with exposure to China should remain vigilant, adapt compliance frameworks, and anticipate potential shifts in trade policy or regulatory enforcement as both governments recalibrate their approaches.

Photo of Bill Wichterman Bill Wichterman
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Paul Ray

Paul Ray advises clients on regulatory opportunities and challenges and helps them formulate and execute advocacy strategies for their regulatory policy priorities before the executive branch and Congress.

During the first Trump Administration, Paul held various senior positions at the Office of Information…

Paul Ray advises clients on regulatory opportunities and challenges and helps them formulate and execute advocacy strategies for their regulatory policy priorities before the executive branch and Congress.

During the first Trump Administration, Paul held various senior positions at the Office of Information and Regulatory Affairs (OIRA) within the White House’s Office of Management and Budget, including as acting, and then Senate-confirmed, head of the office. As OIRA Administrator (the “regulations czar”), Paul supervised the review of hundreds of regulations from across the government, drafted numerous executive orders governing the regulatory process, and led the Administration’s regulatory reform effort. As a result of this experience, Paul is well-positioned to help clients understand and achieve regulatory policy priorities in the context of the government’s regulatory agenda and ongoing reform efforts.

Most recently, Paul was also the Director of the Roe Institute for Economic Policy Studies at The Heritage Foundation. In that role, he supervised the formulation of the Foundation’s economic and regulatory policy recommendations and provided technical assistance to congressional committees and staff regarding legislative changes to the regulatory process. In addition to his role at The Heritage Foundation, Paul also served as a Senior Advisor at a strategic advisory firm. Before his time in government, Paul practiced law at a law firm in Washington, specializing in administrative law matters.

Prior to his role at the White House, Paul was Counselor to the Secretary at the U.S. Department of Labor. There he led departmental efforts in high-profile rulemakings and helped formulate the Department’s legal positions and strategy.

Paul served as a law clerk to Supreme Court Justice Samuel Alito and as a law clerk to the Honorable Debra Livingston of the U.S. Court of Appeals for the Second Circuit.

Paul is a thought leader in the conservative legal movement and is a frequent commentator and speaker on regulatory policy and reform matters, including at law schools, professional gatherings, and other venues. He is the Chairman of Innovations in Peacebuilding International and the Regulatory Process Working Group of the Federalist Society’s Regulatory Transparency Project and a public member of the Administrative Conference of the United States. Paul is also an adjunct lecturer at the Hillsdale College School of Government.

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Matthew Shapanka

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes…

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies, many with significant legal and political opportunities and risks.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters within the Committee’s jurisdiction, including federal election law and campaign finance, and oversight of the Federal Election Commission, legislative branch agencies, security and maintenance of the U.S. Capitol Complex, and Senate rules and regulations.

Most significantly, Matt led the Rules Committee staff work on the Electoral Count Reform and Presidential Transition Improvement Act – landmark bipartisan legislation to update the antiquated process of certifying and counting electoral votes in presidential elections that President Biden signed into law in 2022.

As Chief Counsel, Matt was a lead attorney on the joint bipartisan investigation (with the Homeland Security and Governmental Affairs Committee) into the security planning and response to the January 6, 2021 attack on the Capitol. In that role, he oversaw the collection review of documents, led interviews and depositions of key government officials, advised the Chairwoman and Committee members on two high-profile joint hearings, and drafted substantial portions of the Committees’ staff report on the attack. He also led oversight of the Capitol Police, Architect of the Capitol, Senate Sergeant at Arms, and executive branch agencies involved in implementing the Committees’ recommendations, including additional legislation and hearings.

Both in Congress and at the firm, Matt has prepared many corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at legislative, oversight, or nomination hearings before congressional committees, as well as witnesses appearing at congressional depositions and transcribed interviews. He is also an experienced legislative drafter who has composed dozens of bills introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas.

In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, as well as the election and political laws of states and municipalities across the country.

Before law school, Matt worked as a research analyst in the Massachusetts Recovery & Reinvestment Office, where he worked on all aspects of state-level policy, communications, and compliance for federal stimulus funding awarded to Massachusetts under the American Recovery & Reinvestment Act of 2009. He has also worked for federal, state, and local political candidates in Massachusetts and New Hampshire.

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Nicholas Xenakis

Nick Xenakis draws on his Capitol Hill experience to provide regulatory and legislative advice to clients in a range of industries, including technology. He has particular expertise in matters involving the Judiciary Committees, such as intellectual property, antitrust, national security, immigration, and criminal…

Nick Xenakis draws on his Capitol Hill experience to provide regulatory and legislative advice to clients in a range of industries, including technology. He has particular expertise in matters involving the Judiciary Committees, such as intellectual property, antitrust, national security, immigration, and criminal justice.

Nick joined the firm’s Public Policy practice after serving most recently as Chief Counsel for Senator Dianne Feinstein (C-DA) and Staff Director of the Senate Judiciary Committee’s Human Rights and the Law Subcommittee, where he was responsible for managing the subcommittee and Senator Feinstein’s Judiciary staff. He also advised the Senator on all nominations, legislation, and oversight matters before the committee.

Previously, Nick was the General Counsel for the Senate Judiciary Committee, where he managed committee staff and directed legislative and policy efforts on all issues in the Committee’s jurisdiction. He also participated in key judicial and Cabinet confirmations, including of an Attorney General and two Supreme Court Justices. Nick was also responsible for managing a broad range of committee equities in larger legislation, including appropriations, COVID-relief packages, and the National Defense Authorization Act.

Before his time on Capitol Hill, Nick served as an attorney with the Federal Public Defender’s Office for the Eastern District of Virginia. There he represented indigent clients charged with misdemeanor, felony, and capital offenses in federal court throughout all stages of litigation, including trial and appeal. He also coordinated district-wide habeas litigation following the Supreme Court’s decision in Johnson v. United States (invalidating the residual clause of the Armed Career Criminal Act).

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Photo of Stephen Bartenstein Stephen Bartenstein

Steve Bartenstein advises companies on the application of international trade controls, including export controls, sanctions, and antiboycott laws and regulations. Mr. Bartenstein also is a litigator with experience representing clients in complex and high-stakes civil litigation, including antitrust matters.

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Photo of Ingrid Price Ingrid Price

Ingrid Price is a special counsel in the firm’s Washington, DC office. She advises clients on a range of national security and public policy matters.

Ingrid represents clients worldwide seeking national security approval for foreign investments before the Committee on Foreign Investment in…

Ingrid Price is a special counsel in the firm’s Washington, DC office. She advises clients on a range of national security and public policy matters.

Ingrid represents clients worldwide seeking national security approval for foreign investments before the Committee on Foreign Investment in the United States (CFIUS) and advises clients seeking to mitigate foreign ownership, control, or influence (FOCI) under national industrial security regulations.

Ingrid clerked for Chief Judge James E. Baker of the U.S. Court of Appeals for the Armed Forces. She also previously worked as in-house counsel for Amazon Web Services.

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Photo of Christopher Adams Christopher Adams

Christopher Adams advises clients on matters involving China and the region. A non-lawyer, Mr. Adams recently served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across the U.S. government, led negotiations with China on a…

Christopher Adams advises clients on matters involving China and the region. A non-lawyer, Mr. Adams recently served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across the U.S. government, led negotiations with China on a broad range of trade and investment issues, managed the highest level U.S.-China economic policy dialogues for the Obama and Trump administrations, and advised the Treasury Secretary and other cabinet officials.

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