Tina Bellon

AUSTIN (Reuters) – U.S. Transportation Secretary Pete Buttigieg said Wednesday that federal policy regarding autonomous vehicles would undergo “meaningful” changes in the next years. He stated that policy frameworks have not caught up to technological advances and suggested policy frameworks will need to change.

Buttigieg spoke at South by Southwest’s music, technology and film festival. He said that regulation must set limits for self-driving but not stifle innovation in an “infancy” industry.

Buttigieg stated that it is okay for experimentation to continue until there are safety concerns that escalate. He also suggested that limits on how many vehicles each company test could be used as speed breaks.

Buttigieg stated that “I believe we will see very significant developments here in 2020s.”

Although Congress has been trying to regulate self-driving vehicles for many years without success, U.S. regulators have eliminated the requirement for automakers to provide fully autonomous cars with steering wheels and brake pedals.

Tesla Inc (NASDAQ) has made available pilot software for its Full Self-Driving system, which it claims is now open to tens or thousands of Tesla owners. It can be used on all public roads throughout the United States.

U.S. regulators have been critical of the system for fatal crashes and violations to traffic laws.

Some automakers have been more careful in the face of uncertain regulatory landscapes.

Markus Schaefer, Chief Technology Officer at Mercedes-Benz AG, told Reuters Tuesday that the automaker wants a regulatory structure to safeguard it before it lets go of its semi-autonomous driving program in the United States. This will allow the company to be competitive with Tesla’s Autopilot.

Buttigieg said Wednesday that he also wanted to increase the U.S.’s public transportation system, and incentivize Americans to invest in electric vehicles using government tax incentives.

According to Mobility app Transit data, the U.S.’s national transit usage is still 40% lower than pre-pandemic levels.

The White House’s efforts to raise the $7,500 current EV credit to as high as $12,500 for U.S.-made vehicles are still being blocked by Congress.