The Commerce Department imposed export controls on two of Anthropic’s most advanced AI models on June 13, forcing the company to halt them worldwide.
Anthropic responded by globally disabling its Fable 5 and Mythos 5 models to comply with the new restrictions. Every user lost access as the company navigated the conflict between US law and its global operations.
Tensions between Anthropic and the Trump administration began in February 2026, preceding contract and safety disputes. Triggers for the recent action reportedly included a jailbreak vulnerability in Fable 5 and Pentagon concerns over supply-chain risk. Critics allege political motivation.
The action has pushed lawmakers to renew the debate on AI regulation, weighing national security against the economic need to keep American AI firms globally competitive.
The situation also generated a bull case for decentralized AI. Tokens for projects like Venice (VVV) and Morpheus (MOR) saw significant increases, as the market priced in the value of censorship-resistant alternatives that a single government directive cannot disable.