Guest Column: An AI Train Wreck Avoided: SC Must Lead Again

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by DENNIS FASSULIOTIS

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South Carolina has never waited for history to happen. It has shaped it. Nearly 250 years ago, this state became the battleground where America’s fight for independence turned. As the nation approaches its 250th anniversary, we again face a moment where the question is the same as it was in 1776: Who controls our future, centralized power or the people?

This year, Congress came close to imposing a ten-year federal moratorium on state AI regulation, a period longer than the entire Revolutionary War. That effort stalled, but the push for federal control did not end there. According to Reuters, the White House recently paused an executive order that would have pre-empted state AI laws after a wave of opposition from governors and attorneys general.

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SENATOR LINDSEY GRAHAM’S ROLE

But the danger did not end with the White House. Instead, it shifted to Congress, where similar federal pre-emption language was considered for insertion into the National Defense Authorization Act (NDAA). Recasting AI governance as a national-security function would fundamentally reshape the balance of power between Washington and the states, moving authority upward at the very moment when technological decisions most require local accountability. The pause was not a victory. It was a warning.

South Carolina cannot ignore what that shift implies. Our own Senator Lindsey Graham, whose career has been defined by support for expansive federal authority on national-security matters, now sits at the center of a debate that could strip states of their ability to govern the most transformative technology of our time. Graham has consistently aligned with federal consolidation whenever “security” is invoked. If AI governance is folded into the NDAA framework, South Carolina must ask a clear and urgent question: Will our senior senator defend the concentration of federal power, or the sovereignty of the state he represents?

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A NEW AMERICAN REVOLUTION

This is not a partisan argument. It is a structural one, and its consequences will shape the next century. What comes next is bigger than any single senator, bill, or administration. It is nothing less than a test of the same principle that defined the American Revolution: whether people can govern themselves, or whether authority will drift toward distant power centers.

The American Revolution was not only a fight for independence. It was a redesign of how power should flow in a free society. It moved authority closer to the people and established the idea that government exists because of the citizen, not above them. AI now brings us to a similar civilizational crossroads. This technology can concentrate power on a scale no monarchy or empire ever could, through data, automation, surveillance, and decision-making that increasingly governs daily life.

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SOUTH CAROLINA’S RESPONSIBILITY

The question in 1776 was whether people could govern themselves. The question today is whether people will continue to govern themselves, or whether governance will migrate into opaque systems controlled by a handful of corporations or federal agencies. The Revolution decentralized power. Without deliberate action, AI will centralize it. That is the difference, and the danger.

South Carolina has a responsibility to lead again. Governor Henry McMaster, Representative Brandon Guffey, Senator Tim Scott, and Representative Jeff Bradley have already taken important steps to defend state authority and build the foundation for responsible innovation here at home. Representative Bradley’s proviso establishing the AI Center of Excellence was especially pivotal in positioning our workforce and institutions for the future.

The urgency became clear in 2024, when the state’s $1.8 billion ledger reconciliation crisis exposed the fragility of outdated systems. That episode proved that modernizing our digital infrastructure is not optional. It is essential.

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ACHIEVING DIGITAL INDEPENDENCE

That is why the South Carolina Emerging Tech Association (SCETA), working collaboratively with state leaders, released a plan to modernize digital infrastructure, strengthen cybersecurity, and build sovereign AI capabilities aligned with citizens rather than distant platforms or federal mandates. This strategy positions South Carolina to become a national model for decentralized digital governance, one that strengthens federalism rather than eroding it.

As the year draws to a close and we look ahead to America’s 250th anniversary, South Carolina can take pride in the momentum already building. The inaugural National Strategy for AI and Crypto Policy gathering in Washington, D.C. marked a defining moment, and SCETA was honored to contribute to the national conversation. Entering the new year, our state is well positioned to help shape the next chapter of America 250.

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IN CONCLUSION

With federal pre-emption proposals lurking and Big Tech lobbying heavily for centralized control, the window for state-level leadership remains open – but it may not remain open for long. South Carolina must act now to build the systems we want before we are forced to accept systems we did not choose.

We have led before. South Carolina proved it in 1776, and again in 1830, when we launched the nation’s first steam-powered passenger train, the Best Friend of Charleston, ushering in a new era of infrastructure. Today, the tracks we lay are digital.

South Carolina should move decisively to establish sovereign AI and data-management systems paired with modern digital-asset frameworks and transparent fiscal technology. This would protect citizens, empower businesses, and ensure that innovation strengthens, rather than replaces, the principles of local autonomy and individual liberty.

This is not just a technology strategy. It is a digital independence strategy, a continuation of the same fight that defined us in 1776.

As America enters its 250th year, South Carolina has the chance to lead once more, not only in honoring the past, but in building the infrastructure of the future. It is time to lead again. It is time to choose independence in the age of AI.

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ABOUT THE AUTHOR…

Dennis Fassuliotis is President and Co-Founder of the South Carolina Emerging Tech Association (SCETA.io), leading statewide efforts to integrate artificial intelligence, blockchain, and digital asset innovation into South Carolina’s economic development strategy. A 48-year veteran of the real estate industry, Dennis transitioned his entrepreneurial experience into digital assets seven years ago and has since become one of the state’s foremost advocates for financial transparency and digital independence.

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