Next week, blockchain is taking over The Cyberlaw Podcast once again. On April 29, Steptoe partners Alan Cohn, Gary Goldsholle, and Will Turner will reconvene to discuss the latest in blockchain and cryptocurrency regulation. At the top of the list is the suite of updates coming out of the U.S. Securities and Exchange Commission, including the Framework for “Investment Contract” Analysis of Digital Assets and a No-Action Letter regarding TurnKey Jet, Inc. We’ll consider what this means for companies trying to issue tokens and lay out potential permissible token launch models. We’ll also examine two recent filings: (1) Blockstack’s filing for a $50M regulated token offering; and (2) Acra’s filing to issue its shares as digitized securities, Acra UST Coins.
In this episode, Nick Weaver and I discuss new Internet regulations proposed in the UK. He’s mostly okay with its anti-nudge code for kids, but not with requiring proof of age to access adult material. I don’t see the problem; after all, who wouldn’t want to store their passport information with Pornhub?
Maury Shenk notes that the Pentagon’s reported plan to put a bunch of Chinese suppliers on a blacklist is a bit of a tribute to China’s own list of sectors not open to Western companies. In other China news, Matthew discloses that there’s reason to believe that China has finally begun to use all the US personnel data it stole from OPM. I’m so worried it may yet turn my hair pink, at least for SF-86 purposes.
And in a sign that it really is better to be lucky than to be good, Matthew and I muse on how the Trump Administration’s China policy is coinciding with broader economic trends to force US companies to reconsider their reliance on Chinese manufacturing.
Our News Roundup leads with the long, slow death of Section 230 immunity. Nick Weaver explains why he thinks social media’s pursuit of engagement has led to a poisonous online environment, and Matthew Heiman replays the astonishing international consensus that Silicon Valley deserves the blame – and the regulation – for all that ails the Internet. The UK is considering holding social media execs liable for “harmful” content on their platforms. Australia has already passed a law to punish social media companies for failure to remove “abhorrent violent material.” And Singapore is happily drafting behind the West, avoiding for once the criticism that its press controls are out of step with the international community. Even Mark Zuckerberg is reading the writing on the wall and asking for regulation. I note that lost in the one-minute hate directed at social media is any notion that other countries shouldn’t be able to tell Americans what they can and can’t read. I also wonder whether the consensus that platforms should be editors will add to conservative doubts about maintaining Section 230 at all – and in the process endanger the US-Mexico-Canada Agreement that would enshrine Section 230 in US treaty obligations.
Nick Weaver talks about Hal Martin pleading guilty to unlawfully retaining massive amounts of classified NSA hacking data. It’s looking more and more as though Martin was just a packrat, making his sentence of nine years in prison about right. But as Nick points out, that leaves unexplained how the Russians got hold of so much NSA data themselves.
I know. That could be any national strategy written in the last 15 years. And that’s the point. In our interview, Dr. Amy Zegart and I discuss the national cyber strategy and what’s wrong with it, along with the culture clash between DOD and Silicon Valley (especially Google), and whether the Mueller report should lead to a similarly thorough investigation into how the Intelligence Community and Justice handled the allegations at the start of the Trump Administration. Plus, Amy answers this burning question: “If a banana republic is a country where losing an election means getting criminally investigated, what do you call a country where winning an election means you get criminally investigated?”
In our interview, Elsa Kania and Sam Bendett explain what China and Russia have learned from the American way of warfighting – and from Russia’s success in Syria. The short answer: everything. But instead of leaving us smug, I argue it ought to leave us worried about surprise. Elsa and Sam both try to predict where the surprises might come from. Yogi Berra makes an appearance.
Our interview is with two men who overcame careers as lawyers and journalists to become serial entrepreneurs now trying to solve the “fake news” problem. Gordon Crovitz and Steve Brill co-founded NewsGuard to rate news sites on nine journalistic criteria. Using, of all things, real people instead of algorithms. By the end of the interview, I’ve confessed myself a reluctant convert to the effort. This is despite NewsGuard’s treatment of Instapundit, which Gordon Crovitz and I both read regularly but which has not received a green check.