US considering AI regulation, does this change the trade?

The US government is discussing potential regulation for new AI models, including setting up a dedicated working group and possibly introducing a formal review process. That alone feels like a pretty clear shift in tone, moving from mostly encouraging growth to something more like “grow, but with oversight.” From a long term perspective, some level of regulation probably isn’t a bad thing. AI touches on a lot of sensitive areas like data security, content generation, and even potential military use. Without any structure, the risks could get messy over time. Having clearer rules might actually make the space more stable and bring in more institutional confidence. But the concern is real too. AI is moving insanely fast right now, and if new models have to go through a heavy approval process, that could slow innovation down quite a bit. It could also shift the competitive landscape, especially hurting smaller players that rely on speed and iteration, while larger companies might be better equipped to deal with regulation. From a market standpoint, this kind of news probably hits sentiment first. AI stocks are already trading at pretty high expectations, so any policy uncertainty can easily trigger volatility or divergence. Longer term, it really comes down to how strict the rules end up being. Light touch regulation could actually favor the big players, but anything too heavy might lead to a broader re rating. To me, this feels like a turning point where policy is starting to step in while the growth narrative is still strong. How do you guys see this playing out?
Is regulation a long term positive for the space, or a real headwind?
Are you staying bullish on AI here, or starting to get more cautious?