Week of December 19, 2022
'Twas the week before Christmas, and while most of us were watching Argentina win the World Cup and generally spreading holiday good cheer, our friends at the Appropriations Committees had to settle for “visions of sugar plums,” as committee staffers hurriedly pulled together their bills in order to have an omnibus funding package ready to go this week.
This all points towards the Committee having its stockings hung by the chimney with care, just in time to get their bill passed before the current Continuing Resolution expires on Friday, December 23. Members are now working to attach their non-germane legislative priorities to the funding package, as it is the last legislative vehicle that will pass in the 117th Congress. Speculation abounds that legislation dealing with child online privacy and antitrust could be part of this final package; though the wish list of last minute add-ons is getting so long that even Santa Claus would have a tough time delivering all of it.
The Weekly Newsletter will be off next week, but will be back January 3rd to hit the ground running, gaveling in the 118th Congress. Happy Holidays from the Franklin Square Group!
What We’re Watching:
FTX Recap and What’s Next For Crypto: As most congressional committees wrapped up the 117th Congress last week, both the House Financial Services Committee and the Senate Banking Committee held hearings focused on examining the collapse of FTX. What was expected to be largely controversial, and even consequential for the crypto industry, proved the opposite. The debate showed that most members see the FTX collapse as a business failure and possibly the weakness of a nascent market, not an inherent failure of blockchain technology. Sen. Elizabeth Warren (D-MA) provided more noteworthy news last week, introducing legislation to require crypto companies to comply with stricter anti-money laundering and know your customer laws. We can expect both Committees to maintain their sharp focus on the crypto industry next year and ramp-up oversight of other crypto trading platforms such as Binance.
Twitter Gets FTC's Attention: Twitter CEO Elon Musk has made waves in recent days in disbanding the company’s long-standing Trust and Safety Advisory Board to weigh in on content moderation considerations, as well as suspending the accounts of several journalists critical of the CEO’s business practices. The recent moves have also garnered the attention of the FTC. The Agency sent letters to the company asking for specific measures as to how Twitter will comply with a consent decree the company entered into in 2011, and promising to rigorously enforce certain privacy measures. The company can surely expect stronger oversight next year and will no doubt be an even bigger part of content moderation and Section 230 debates in Congress.
TikTok Restriction Threats Mount: Lawmakers have been turning up the heat on the Chinese-based social media giant TikTok in the wake of a flood of national security concerns. Last week, the U.S. Senate passed by unanimous consent a bill that would ban federal employees from downloading or using the social-media app on government devices. House Speaker Nancy Pelosi hasn’t eliminated the possibility of taking up the bill in the final week of the 117th Congress. Meanwhile, Senator Marco Rubio (R-FL) and other Republican co-sponsors introduced legislation calling for a total ban on TikTok in the U.S. The legislation titled, ANTI-SOCIAL CCP Act, specifically would direct the president to block or prohibit Americans from using TikTok and other social media companies that are headquartered in China, Russia and other countries the lawmakers define as ‘countries of concern. TikTok, like the larger China competition debate, is a place where there is bipartisan support and we expect legislative action next year.
What’s Happening This Week:
Tech Hearings
No relevant hearings this week.
Tech Events
The Brookings Institution - "Should Crypto be Regulated by the Federal Government?" - Tuesday, December 20 at 9:00 AM ET
The Institute of World Politics - "Counterintelligence and Cyber Technology" - Wednesday, December 21 at 6:00 PM ET
What’s Interesting This Week:
It’s a bird, it’s a plane, it’s Santa Claus! After one child’s happy accident in calling a misprinted number to reach Santa Claus in 1955, the North American Aerospace Defense Command (NORAD) launches its critical mission every year in tracking Santa’s journey on Christmas Eve. Kids young and old can be sure to tune into the tracker this year!
