Week of March 13, 2023
Loyal readers of a certain age had something to smile about last night when actor Ke Huy Quan took home a Best Support Actor Oscar, a long overdue recognition for those of us who believe he should have received the nod 38 years ago when he played Data in Goonies (top 10 movie of all time). And, be on the lookout for some enjoyable flair on the baseball diamonds this week when MLB teams don green unis on Thursday in celebration of St. Patrick’s Day.
After a tense and frantic weekend for policymakers and many tech companies, Federal Regulators announced Sunday night that they will guarantee all deposits of Silicon Valley Bank. This important step ensures tech startups and other small businesses across the country will have access to their funds. As Financial Services Committee Chairman Patrick McHenry observed, it was “the first Twitter fueled bank run.” The Biden Administration will release more of its Fiscal Year 2024 budget today, which includes several tech-related provisions for funding of cybersecurity, emerging tech, and AI initiatives. Franklin Square will be providing a breakdown of all things tech in the proposed budget. The Senate is in session and the House is in District Work Period (aka, recess).
What We’re Watching:
Silicon Valley Bank Fallout: Last week saw an unprecedented run on Silicon Valley Bank, which by Friday had been closed on order of the California Department of Financial Protection and Innovation and the FDIC. In addition to insured deposits, this weekend saw a flurry of activity to ensure SVB clients could access additional funds for operations come Monday morning. Regulators stepped in Sunday night and guaranteed access to deposits at SVB in order to lessen systemic risk and promote a more orderly resolution of the bank’s assets. There will be continued scrutiny and monitoring of the banking system in the coming days by regulators and policymakers as they assess the implications of the failure and its effects on the innovation economy.
FTC to Vote on Social Media Advertising Investigation: The Federal Trade Commission will vote this Thursday on whether to issue investigations into eight social media companies and video streaming platforms on how they monitor and review deceptive advertising on their platforms. The FTC posted their open commission meeting agenda late last week, keeping the action vague. No background on the potential investigation is yet available, but the move signals an enhanced scrutiny by the regulator on a number of issues surrounding big tech and consumer protections. In the wake of last week’s Senate Judiciary hearings on competition and content moderation, several Members discussed the potential need for enhanced FTC authority to reign in big tech companies. The agency also signaled potential oversight of emerging AI tech applications like ChatGPT, warning of deceptive and overstated use capabilities. This week’s actions could be another brick in the oversight tower of big tech.
Congress Drills Down on China Technology: The persistent drumbeat of congressional actions aimed at China beats on as Members in the House and Senate rallied another host of actions last week. Senators Mark Warner (D-VA) and John Thune (R-SD) introduced the RESTRICT Act last week, which would provide the federal government additional authority to prohibit certain technologies (including TikTok) from China and other nations of concern including Russia, Iran, North Korea, Cuba or Venezuela. Not to mention action in the House Energy and Commerce Committee, in which they favorably voted on a number of bills aimed at Chinese tech including the CAUTION Act, which would require the disclosure of whether a Chinese-owned app is banned on federal government devices. These actions add to the growing list of items on the government’s agenda to bolster strategic competition and fortify defenses against national security concerns.
What’s Happening This Week:
Tech Hearings
Senate Budget Committee hearing on the President’s FY24 Budget with OMB Director Shalanda Young - Wednesday, March 15 at 10:00 AM
The Senate Homeland Security and Governmental Affairs Committee hearing on cybersecurity in the healthcare sector - Thursday, March 16 at 10:00 AM ET
Senate Finance hearing President's proposed budget request for FY24 with Janet Yellen - Thursday, March 16 at 10:00 AM ET
Federal Trade Commission open commission meeting - Thursday, March 16 at 11:00 AM ET
Tech Events
New America - "North America's Semiconductor Moment," focusing on supply chains across the U.S. and Mexico - Wednesday, March 15 at 2:00 PM ET
The Aspen Institute - "An 'All-Tools' Approach to Disrupting Digital Threats" - Wednesday, March 15 at 10:00 AM ET
The Cato Institute - "Do the Latest Policy Proposals Improve Children's Online Safety?" - Wednesday, March 15 at 11:00 AM ET
The Brookings Institution Center on Regulation and Markets and the Georgetown University AI, Analytics, and the Future of Work Initiative - "ChatGPT and the future of work" - Wednesday, March 15 at 2:00 PM ET
The Bipartisan Policy Center - "Crypto Crossroads: Navigating the Future of Crypto and Blockchain Policy" - Wednesday, March 15 at 2:00 PM ET
The Center for Strategic and International Studies - "Operationalizing Data Free Flow with Trust" - Tuesday, March 14 at 8:00 AM ET
The Multicultural Media, Telecom and Internet Council, ALLvanza, and Asian Pacific American Advocates - "Understanding Artificial Intelligence and Its Impact on Our Communities" - Tuesday, March 14 at 12:00 PM ET
The Henry L. Stimson Center - "Due Diligence in Cyberspace?" - Tuesday, March 14 at 1:30 PM ET
The Atlantic Council - "C4ISR (Command and Control, Communications, Computers, Intelligence,Surveillance and Reconnaissance): Assessment and Recommendations After Madrid" - Thursday, March 16 at 11:00 AM ET
What’s Interesting This Week:
Top of the Morning!.... On March 17, records show that the first St. Patrick’s Day parade was held on March 17, 1601 in a Spanish colony in what is now St. Augustine, Florida. The parade, and a St. Patrick’s Day celebration a year earlier were organized by the Spanish Colony's Irish vicar Ricardo Artur. More than a century later, homesick Irish soldiers serving in the English military marched in Boston in 1737 and in New York City on March 17.
