EU Lawmakers Fail to Agree on Watered-Down AI Rules
On April 29, 2026, EU countries and lawmakers failed to reach a deal on watered-down amendments to the AI Act. Disagreements centered on exemptions for sectors under product safety rules and the balance of AI risk safeguards.Talks resume in May, delaying regulatory clarity, and may impact AI integration in crypto across Europe. On April 28, 2026, European Union (EU) countries and European Parliament lawmakers failed to reach an agreement on proposed watered-down amendments to the landmark AI Act after 12 hours of negotiations in Brussels. The talks, part of the European Commissions Digital Omnibus, aimed to ease rules for businesses competing with U.S. and Asian rivals but stalled over exemptions and high-risk AI requirements. EU AI Act Amendment Negotiations Fail According to sources, EU countries and European Parliament lawmakers concluded a 12-hour trilogue on April 29, 2026, without agreeing on amendments to the AI Act. The Digital Omnibus initiative drives discussions to streamline EU digital rules, including phased enforcement for general-purpose AI models and high-risk systems, with implementation already rolling out from 2024 onward. A Cypriot official, speaking on behalf of the current EU Council presidency, stated: “It was not possible to reach an agreement with the European Parliament.” Dutch lawmaker Kim van Sparrentak criticized