# US legal ruling on AI-generated CSAM > Live situation record from CLSTR: https://clstr.news/situations/us-legal-ruling-on-ai-generated-csam > Updated: 2026-09-02T19:42:57.000Z. Sources: 11. Developments: 2. The U.S. Court of Appeals for the Seventh Circuit ruled that the private possession of AI-generated child sexual abuse material (CSAM) is protected by the First Amendment, provided the content does not depict real children. The court’s decision adhered to the 2002 Supreme Court precedent, Ashcroft v. Free Speech Coalition, which protected sexually explicit depictions of fictional children when no actual minors were exploited. The ruling resulted in the dismissal of possession charges against Wisconsin resident Steven Anderegg, who was found with AI-generated images created using the Stable Diffusion model. While possession charges were dismissed, Anderegg still faces other charges related to the alleged production, distribution, and transfer of such material to a minor. In the decision, Judge John Lee expressed concern that rapid advancements in artificial intelligence allow for the creation of hyper-realistic images that are “virtually indistinguishable” from real child abuse material. He urged the Supreme Court to reconsider the legal status of virtual abuse material, noting that the technological capabilities of generative AI may have outpaced the legal frameworks established by previous precedents. ## Timeline ### 2026-09-02: U.S. Court rules AI-generated child abuse material protected by First Amendment The U.S. 7th Circuit Court of Appeals ruled that AI-generated child sexual abuse material is protected by the First Amendment if it does not depict real individuals, complicating existing legal precedents. 7 sources. https://clstr.news/cluster/us-court-rules-ai-generated-child-abuse-material-protected-by-first-amendment ### 2026-08-30: Seventh Circuit rules AI-generated child pornography is legal to possess The Seventh Circuit ruled that possessing AI-generated child pornography is protected by the First Amendment if no real children were involved, citing a 2002 Supreme Court precedent. 4 sources. https://clstr.news/cluster/seventh-circuit-rules-ai-generated-child-sexual-abuse-material-is-legal-to-possess --- Cite as: US legal ruling on AI-generated CSAM. CLSTR, https://clstr.news/situations/us-legal-ruling-on-ai-generated-csam