Federal agencies are in limbo as the Trump administration moves to remove Anthropic from government systems without formal orders amid a legal dispute with the AI company. This comes after President Trump and the Pentagon ordered federal agencies to "immediately cease" using Anthropic’s technology. The situation is causing confusion and costs for agencies and contractors alike. The General Services Administration and the Department of Health and Human Services have already removed Anthropic's products within hours of Trump's directive. This follows a breakdown in negotiations between the Pentagon and Anthropic over safety guardrails. For agencies that already used Anthropic, the transition has been confusing and abrupt. At one civilian agency, there was a lack of information about how to proceed, while others have been told to stop using the technology. Meanwhile, a lawsuit has been filed against Elon Musk's artificial intelligence firm xAI alleging that photographs of three Tennessee teenagers were used to generate child sexual abuse material (CSAM) with the Grok tool. The Securities and Exchange Commission (SEC) is seeking guidance on what types of cryptocurrencies fall under securities laws and its jurisdiction.