In this week's edition, the Virginia State Senate proposed a bill to regulate digital asset mining and incentivize cryptocurrency, reflecting progress in financial technology legislation. President Biden vetoed a GOP bill on foreign components in EV chargers, reaffirming his commitment to domestic clean energy manufacturing. Internationally, US and UK sanctions against Houthi leaders in Yemen for Red Sea vessel attacks indicate a stronger stance on regional security. Additionally, upcoming congressional hearings with CEOs from Discord, Meta, Snapchat, TikTok, and X (formerly Twitter) underscore the growing focus on child safety online, part of a broader trend of increased scrutiny on tech companies' responsibility to protect young users.
Industrial Policy & International Security
Biden vetoes GOP measure that aimed to block White House policy on foreign content in EV chargers | The Associated Press
President Biden vetoed a GOP measure to prevent foreign components in federally funded electric vehicle (EV) chargers, arguing it would actually harm American jobs and domestic EV charger production by eliminating the domestic manufacturing requirement for EV vehicles. This move, countering efforts to exclude China from the EV charger supply chain, underscores Biden's challenge in balancing clean energy goals with foreign market reliance, particularly with China's dominance in the EV battery market. The veto aligns with his plan to promote domestic EV sales and reduce "range anxiety" by increasing American-made chargers.
OpenAI’s Altman discussed chip-making venture with members of Congress | The Washington Post
OpenAI CEO Sam Altman is negotiating with Congress to increase advanced computer chip supply, vital for AI development like ChatGPT. Altman proposes building new semiconductor factories to keep the U.S. competitive in technology and defense, aligning with the $52 billion Chips for America program. This move, amidst U.S. restrictions on AI chip exports to China, may involve partnerships with companies like TSMC. The initiative, crucial for the U.S. economy and tech superiority, reflects the high costs and complexity of AI chip production and global AI advancement.
US Regulation
Federal Trade Commission Launches Inquiry Into A.I. Deals by Tech Giants | The New York Times
The Federal Trade Commission (FTC) is investigating Microsoft, Amazon, and Google's investments in AI startups OpenAI and Anthropic. This inquiry seeks to assess the impact of these multibillion-dollar deals on AI sector competition, examining the tech giants' influence on these startups and their decision-making. This move, part of FTC Chair Lina Khan's effort to update antitrust enforcement, aims to scrutinize corporate practices that may impede competition and innovation. The investigation could lead to formal probes to determine if these investments contravene antitrust laws.
Bipartisan Senate group pushes Schumer for Big Tech watchdog agency | The Hill
A bipartisan group of senators, including Michael Bennet (D-Colo.), Lindsey Graham (R-S.C.), Elizabeth Warren (D-Mass.), and Peter Welch (D-Vt.), urged Senate Majority Leader Chuck Schumer to establish an independent agency to regulate major technology companies. They believe existing efforts to regulate tech, especially social media, have been inadequate, citing impacts on mental health, privacy, and market incentives. The proposal, seeking to address broader threats beyond just AI, follows previous legislation efforts. The senators argue that a dedicated regulatory body is necessary to tackle the complex and risky digital sector effectively.
Washington takes aim at facial recognition | Politico
Led by Sen. Raphael Warnock, a group of Democratic senators is urging the Justice Department to review police use of facial recognition technology for civil rights law compliance. This follows a National Academies report on the technology's advancement, potential misuse, and flaws. The Federal Trade Commission has started regulating it, notably banning Rite Aid's system for bias. With growing evidence of racial bias and false arrests linked to the technology, there's an increasing call for federal oversight, although legislative efforts have stalled due to a lack of bipartisan support.
Innovation
Biden administration, tech giants partner for AI research program | The Hill
The National Science Foundation, in partnership with major tech companies and nine federal agencies, has launched the National Artificial Intelligence Research Resource (NAIRR) pilot, under President Biden's AI initiative. This program aims to democratize AI research infrastructure access, involving tech giants like Amazon, Google, IBM, and Microsoft, and agencies like the Department of Energy and NASA. The two-year pilot will facilitate AI research in healthcare, sustainability, and other areas, focusing on open research, privacy, software interoperability, and education. Initially supporting 25-50 projects, it aims to expand to 100-400 by spring. Researchers can apply online through a pilot portal.
OSD to host industry confab in search of high-tech solutions for ‘unleashing data’ | Defense Scoop
The Office of the Secretary of Defense is hosting an Innovation Outreach Solutions Meeting in April to discuss enhancing data management for the Pentagon's Combined Joint All-Domain Command and Control (CJADC2) initiative. This initiative aims to integrate the U.S. military's sensors, data, and weapon systems for better decision-making. The meeting will address technologies for data transmission, processing, and security, focusing on quantum and laser technologies, edge computing, and machine learning for real-time anomaly detection. The goal is to develop tools for effective data triage, cataloging, integration, and visualization, aiding decision-makers and AI/ML capabilities.
Cyber
Wall Street Stock-Lending Platform Crashes in Ransomware Attack | Bloomberg
The LockBit hacking group attacked EquiLend, a major fintech company handling trillions in securities transactions, disrupting services. EquiLend, associated with firms like Goldman Sachs and JPMorgan Chase, faces ransom demands to restore its systems. Active since 2020, LockBit has conducted over 1,700 hacks, extorting $91 million. The attack impacts EquiLend's crucial NGT platform in Wall Street trading, with EquiLend working on multi-day recovery. This follows EquiLend's recent sale to Welsh, Carson, Anderson & Stowe, highlighting LockBit's history of financial market disruptions through encryption extortion.
US SEC blames 'SIM swapping' for its X account hack | Reuters
The U.S. Securities and Exchange Commission (SEC) suffered a "SIM swapping" cyberattack, compromising its social media account on X (formerly Twitter). The attack, which led to a false Bitcoin ETF announcement affecting Bitcoin's price, occurred after SEC staff disabled multi-factor authentication (MFA) and failed to reinstate it before the January 9 incident. Hackers gained control by transferring the SEC's phone number to a new device, enabling a password reset. Investigations by the FBI, DOJ, and other agencies are underway to determine how the SEC's mobile carrier was deceived and to strengthen cybersecurity measures.
Democracy Online
Disinformation poses an unprecedented threat in 2024 — and the U.S. is less ready than ever | NBC News
Disinformation poses an unprecedented threat to US democracy in 2024, with experts warning of a convergence of events at home and abroad, fueled by rising authoritarianism, distrust, and social unrest. Factors include susceptibility to disinformation from former President Trump, ubiquitous AI technology, reduced efforts by social media companies to curb misinformation, and attacks on disinformation researchers. The upcoming presidential election, coinciding with elections in over 50 countries, heightens the dangers. Solutions involve reviving local news, promoting information literacy, and enacting meaningful social media legislation. The threat spans from influencing voting choices to inciting political violence.
