The Big Story 

President Trump’s reversal on previously blocked chip sales to China has sparked cries that the White House is selling out America’s security concerns in a bid to raise revenue.

©  Illustration / Courtney Jones; Greg Nash; Michael Dinneen, Associated Press; and Adobe Stock   

Trump on Monday agreed to allow tech giants Nvidia and AMD to secure export licenses to sell their advanced artificial intelligence (AI) chips in China in exchange for a 15 percent cut of the profits.

The White House said Tuesday that more such deals could be on the table.

The unusual deal doesn’t just raise legal questions. Experts say the U.S. should be wary of turning over American-made technology that could boost its adversary’s AI capabilities, at a time when the two countries are fiercely competing for dominance.

The security concerns appear to be a two-way street. China urged tech companies there to avoid any purchase of Nvidia's H20 chip, citing security issues.

The move once again has Trump at odds with Congress’s China hawks, who argue the administration is shortchanging America’s national security interests to make a buck. 

Rep. Raja Krishnamoorthi (Ill.), the top Democrat on the House Select Committee on the Chinese Communist Party, in a statement said the most troubling part of the deal was a contradiction at the heart of the policy.

“The administration cannot simultaneously treat semiconductor exports as both a national security threat and a revenue opportunity,” he said. “By putting a price on our security concerns, we signal to China and our allies that American national security principles are negotiable for the right fee.”

The same panel’s GOP chair, Rep. John Moolenaar (Mich.), said there are “questions about the legal basis” for such a deal. 

“Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the Government to grant licenses to sell China technology that will enhance its AI capabilities,” he said in a statement.

Check out the full report at TheHill.com.

Welcome to The Hill’s Technology newsletter, I'm Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

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Crypto Corner 

Bullish makes its NYSE debut

© AP Photo/Julia Nikhinson

The crypto exchange Bullish made a strong first impression on the New York Stock Exchange on Wednesday, surging more than 200 percent in its public debut.

The firm, which is backed by venture capitalist Peter Thiel, opened at $90 and peaked at $118, well above its initial public offer (IPO) price of $37. It finished trading Wednesday at $68, up about 84 percent.

Bullish is the latest crypto company to go public. Stablecoin issuer Circle made its debut on the stock exchange in June.

Gemini, a crypto exchange run by Tyler and Cameron Winklevoss, has also reportedly filed for an IPO confidentially.

The flurry of activity comes as the crypto industry has found a more receptive partner in Washington under President Trump and a Republican-controlled Congress.

Trump signed the GENIUS Act into law last month, establishing a regulatory framework for dollar-backed digital tokens known as stablecoins.

However, the crown jewel of crypto legislation — a market structure bill that breaks up oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission — remains elusive. 

The House passed its version of the bill, the Digital Asset Market Clarity Act, last month, but the Senate appears keen on taking its own approach.

Senate Banking Republicans released a discussion draft of their own legislation in late July.

The White House and Senate GOP have set their sights on passing a market structure bill by the end of September, although this may be complicated by other battles looming in Congress next month.

Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.