The FTX crash and ensuing fallout has fueled efforts by Congress and federal regulators to rein in the cryptocurrency business, which caused massive investment losses this past year. Senator Sherrod Brown (D-Ohio) and Congressman Patrick McHenry (R-North Carolina) are among those leading the charge to put consumer safeguards in place. McHenry in January became chair of the House Financial Services Committee. Legislators are also calling for robust enforcement of existing laws, which the crypto industry has been resisting. Senator Elizabeth Warren (D-Massachusetts) said Congress needs the resources “to be an effective cop on the beat.” Continue reading Crypto Meltdown Renewing Regulatory Interest on Capitol Hill

Senator Jacky Rosen (D-Nevada), a former computer programmer, brought Senator Mark Warner (D-Virginia) and Ben Ray Luján (D-New Mexico) to the CES stage to talk about their top technology interests in the new year. All of them serve on committees with core interests in the future of technology. In addition to serving on six committees, Rosen is on the subcommittee on cybersecurity; Warner is chair of the Senate Select Committee on Intelligence among other committee assignments; and Luján is a member of the Committee on Commerce, Science and Transportation among others. Continue reading CES: Federal Tech and Innovation Priorities for the New Year

The U.S. House and Senate have introduced companion bills to ban TikTok and other apps that censor news, pose threats to the personal data of U.S. citizens and entities or engage in other surreptitious behaviors. The Senate bill, advanced by Marco Rubio (R-Florida) is called the ANTI-SOCIAL CCP Act, an acronym for Averting the National Threat of Internet Surveillance, Oppressive Censorship and Influence, and Algorithmic Learning by the Chinese Communist Party. The related House bill has bipartisan support from Representatives Mike Gallagher (R-Wisconsin) and Raja Krishnamoorthi (D-Illinois). Continue reading Congress Intros Bills to Ban TikTok Due to Security Concerns

The House Judiciary Committee has approved the American Music Fairness Act, which would require broadcast radio stations to pay royalties to performance artists and musicians. Currently only songwriters and publishers get royalties for terrestrial radio play. The U.S. is unusual among developed nations in failing to provide a legal framework for performer compensation for songs played on-air — a vestigial artifact from the days when radio was a fledgling media and airplay was considered promotion for record sales. Newer media, including streaming and other subscription services, pays performance royalties. Continue reading Music Fairness Act to Secure Radio Payments for Performers

Big Tech’s battle with news publishers has moved to the U.S. where Congress is considering legislation to help publishers collectively negotiate compensation from social media sites disseminating their copyrighted content. Meta Platforms reacted strongly to the bill, called the Journalism Competition and Preservation Act. “If Congress passes an ill-considered journalism bill as part of national security legislation, we will be forced to consider removing news from our platform altogether rather than submit to government mandated negotiations that unfairly disregard any value we provide to news outlets through increased traffic and subscriptions,” the company tweeted. Continue reading Meta and Alphabet on the Frontlines of Big Tech News Battle

Brendan Carr, a commissioner of the Federal Communications Commission, is continuing his efforts to have TikTok banned, telling the Council on Foreign Investment in the U.S. in his strongest language to date that the viral short-form video app is, as a result of consumer adoption, becoming a part of the nation’s critical information infrastructure, and thus presents a national security risk due to Chinese ownership. TikTok is reportedly back in negotiations with the CFIUS, an interagency committee that reviews foreign investment, about a change of ownership that would smooth the path to ongoing U.S. operations. Continue reading FCC’s Carr Renews Call for a National Security Ban on TikTok

Senate Homeland Security Committee leaders Gary Peters (D-Michigan) and Rob Portman (R-Ohio) have introduced a bill requiring a risk framework for open-source code. The proposed legislation would require the Cybersecurity and Infrastructure Security Agency to develop the risk evaluation process for open-source software being used by federal agencies and critical infrastructure. The move follows the discovery in December of a vulnerability in the Apache Software Foundation’s popular Log4j Java logging utility. Peters said the Log4j incident presented a serious threat to banks, hospitals, and utility companies, among other national security operations. Continue reading Senate Group Wants CISA to Protect Open-Source Software

Governor Gavin Newsom signed the California Age-Appropriate Design Code Act into law last week, making his state the first in the nation to adopt online child safety measures. The bipartisan legislation requires online platforms to default to privacy and safety settings that protect children’s mental and physical health. The new law, cosponsored by Assemblymembers Buffy Wicks (D-15th District) and Jordan Cunningham (R-35th District), prohibits companies that provide online services and products in California from using a child’s personal information and forbids collecting, selling, or retaining a child’s geolocation, among other things. Continue reading California Governor Signs Online Child Protection Bill into Law

Executives from four social media giants defended the privacy, security and content moderation protocols of their platforms to the Senate Homeland Security Committee Wednesday. In her first appearance before Congress, TikTok COO Vanessa Pappas was grilled on whether the short-form video app shares data about American citizens with the Chinese government. ByteDance, which owns TikTok, is based in Beijing, and its potential censorship of user content was another area of concern. Questions for the group — which included representatives from Meta Platforms, YouTube and Twitter — ranged from extremists to biometrics. Continue reading TikTok on the Hot Seat at Senate Homeland Security Hearing

Twitter shareholders this week approved the $44 billion takeover bid by Elon Musk, voting the same day as whistleblower Peiter Zatko testified at a Senate Judiciary Committee hearing, telling lawmakers that the social media company’s leadership misled regulators about security failures. Senator Chuck Grassley (R-Iowa) was skeptical as to Twitter CEO Parag Agrawal keeping his job if Zatko’s allegations prove to be true, saying the executive “rejected this committee’s invitation by claiming that it would jeopardize Twitter’s ongoing litigation” with Musk. Twitter has categorically denied Zatko’s claims, which include foreign agents infiltrating Twitter’s workforce. Continue reading Twitter Investors Back Musk Offer as Whistleblower Testifies

This past year, Big Tech has invested more than $95 million in lobbying initiatives designed to kill the American Innovation and Choice Online Act, which seeks to rebalance the power between consumers and major technology companies such as Amazon, Alphabet, Apple and Meta Platforms. In two years, the bill has advanced further than any similar U.S. legislative effort, but time is running out before midterm elections and the unknown of a potential shift in control of the House and/or Senate. Supporters of the measure say they currently have the votes needed for passage. Continue reading Big Tech Lobbying and Midterms Could Impact Antitrust Bill

After more than a year of wrangling, the Senate on Wednesday passed a bipartisan tech and science funding bill in a 64-33 vote. The CHIPS and Science Act commits $280 billion to be spent over five years in what is being called the largest manufacturing, research and development initiative of its kind. The largest single area of investment is $76 billion to fund domestic semiconductor production, which includes $24 billion in new tax incentives. Yesterday, the bill passed in a 243-187 House vote and now heads to President Biden’s desk to be signed into law. The legislation aims to bolster national security by making the U.S. chip independent and boosting competition against China. Continue reading Congress Passes CHIPS Act to Boost Production, Research

The Senate moved to advance legislation that supports U.S. semiconductor manufacturing by stripping other aspects from a larger China competitiveness bill. Dubbed “CHIPS-plus,” the narrowed proposal still allocates $52 billion in subsidies for chipmakers but had a “hold-this-space” marker for the remainder of the language. The procedural motion required 51 votes to determine if this stripped-down version of the United States Innovation and Competition Act (USICA) could proceed to a final vote even though adjustments would continue to be made before the Senate votes on the finished result. It cleared that hurdle, 64-34. Continue reading Senate Advances $52B Bill to Combat Global Chip Shortage

With efforts to fill the vacant FCC seat and tilt the commission back to a Democratic majority, the Senate is poised to try an alternate path to realizing the party’s longtime goal of restoring net neutrality rules. Championed by Senators Ed Markey (D-Massachusetts) and Ron Wyden (D-Oregon), the Net Neutrality and Broadband Justice Act proposes to reclassify broadband as a telecommunications service, which would open up companies including AT&T and Verizon to stricter FCC oversight. Internet service providers would be prevented from blocking or throttling content, while pricing and privacy would also receive scrutiny. Continue reading Proposed Legislation Drafted to Restore Net Neutrality Rules

In the wake of an FCC commissioner’s call to have TikTok banned from the Apple and Android stores, company CEO Shou Zi Chew issued a letter assuring senators that the China-based company is doing all it can to “remove any doubt about the security of U.S. user data.” Responding to questions from nine Republicans — including ranking Senate Commerce Committee member Roger Wicker (R-Mississippi) — Chew reiterated the claim that TikTok maintains American user data on servers controlled by the U.S. company Oracle, with plans for third-party audits. The dust-up follows an incendiary report by BuzzFeed News. Continue reading TikTok Promises Government That User Data Will Remain Safe