This week in TechREG has been quieter than usual as lawmakers didn’t hold congressional hearings and regulators didn’t make important announcements.
However, the U.S. Supreme Court filled this void with an important ruling Tuesday (May 31) temporarily halting the application of a Texas law that could affect the way social media companies apply their content moderation policies.
California has been more active on the regulatory front. The state published a consultation Wednesday (June 1) seeking feedback about how to regulate cryptocurrency assets. Also, the California Privacy Agency published a draft privacy bill in preparation for a meeting next week to discuss this subject.
Big Tech Firms Gets Important Court Victory
US Supreme Court Sides With Social Media Firms, Blocks Texas Law
Social media firms like Facebook or Twitter have obtained an important court victory after the U.S. Supreme Court issued a ruling suspending a Texas law that aims to prohibit online platforms from suppressing user posts based on their political views. In a 5-4 vote, the court granted an emergency stay request from tech industry groups that petitioned to block the law, which is currently being appealed in a federal appellate court. The tech groups warned that the law could unleash a torrent of hate speech and disinformation on their platforms.
Big Tech in the US Could Have Its Own Regulator Under New Bill
Google, Meta, Apple, Amazon and other tech companies may need to deal with a new digital platform regulator in the U.S. if Congress passes a bill that seeks to create a commission to rein in Silicon Valley’s power. Sen. Michael Bennet and Rep. Peter Welch introduced the Digital Platform Commission Act of 2022 in the Senate and the House in May. This bill, if approved, would establish a new five-person commission tasked with protecting consumers in the age of Big Tech. The bill seems to take ideas from different legal texts around the world, in particular from other bills introduced in the U.S., Europe and the U.K.
Crypto Has a Quiet Regulatory Week
California Agency Seeks Input on Crypto Regulation
The Department of Financial Protection and Innovation (DFPI) in California has invited stakeholders to provide input on potential regulation related to crypto assets following an executive order issued by Gov. Gavin Newsom May 4. The DFPI seeks comments on regulatory priorities, California Consumer Financial Protection Law regulation and supervision, and market monitoring functions. For any recommendation relating to rulemaking, the DFPI invites stakeholders and the public to provide a description of the economic impact of the recommendation for California businesses and consumers.
Tech Pros Join Academia to Counter Crypto Lobbying on Capitol Hill
Technology experts and academics are targeting lawmakers in a campaign to counter lobbying efforts on Capitol Hill by the cryptocurrency industry. A letter signed by 26 professionals — including Harvard lecturer Bruce Schneier, former Microsoft engineer Miguel de Icaza and principal engineer at Google Cloud Kelsey Hightower — lambasted cryptocurrency and blockchain technology.
NY Fed’s Williams Says Digital Money May Impact Policy
New York Federal Reserve President John Williams said developing digital currency and payment technology could impact how the Federal Reserve works with monetary policy and does its balance sheet. Williams, speaking at a research conference, said digitizing finance could “have implications for markets and for our interactions with counterparties, as well as how we carry out monetary policy,” and that there would be a big question on how central banks would anticipate and adapt.
Privacy Bill May Need Further Clarifications
California Privacy Bill Draft Sidesteps Key Personal Data Collection Issues
The California Privacy Protection Agency has unveiled a preliminary draft of its proposed privacy regulation hidden in the announcement of its next public meeting June 8. The 66-page draft includes seven pages of detailed requirements for obtaining and implementing consumer direction regarding the sale and sharing of personal information. However, according to some legal experts, it does not cover several privacy hot topics mentioned in the grant of rulemaking authority to the agency.
Sen. Warren’s SPAC Bill Aims to Rein in Losses, Abuses
Sen. Elizabeth Warren is planning to introduce a bill aimed at curbing abuses and losses in deals surrounding special purpose acquisition companies (SPACs) that builds on March guidelines from the Security and Exchange Commission (SEC). The SPAC Accountability Act of 2022 springs from Warren’s 26-page report on SPACs, also known as blank-check companies. The report is based on the results of her investigation of high-profile SPAC creators.
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