Rep. Suhas Subramanyam of Virginia told NewsNation viewers on Tuesday that statutes written for large corporations also bind the smallest firms and thereby block their expansion.
The Democrat, who has worked with technology startups, described promising concepts that stalled under that burden.
He said artificial intelligence will require some rules, yet officials should remember that a young company lacks the legal and compliance staff of a giant like Google and should not be overwhelmed when Congress seeks to protect consumers or improve safety.