The US Federal Communications Commission (FCC) is poised to reinstate crucial net neutrality rules and assert new regulatory control over broadband internet, a move reversing the policies enacted under former President Donald Trump, announced FCC Chair Jessica Rosenworcel. The commission plans to finalise the rule reinstatement during its 25 April meeting, marking a significant shift towards ensuring equal and fair access to online content.
President Biden has called on the FCC to vastly expand government control of the Internet through Title II – a sweeping set of authorities better known by the Orwellian label "net neutrality."
News reports suggest the FCC will vote soon on a final order that would do just that.…
Net neutrality, a fundamental principle advocating for unbiased internet access without favouritism towards specific products or websites, underpins the proposed FCC regulations. Rosenworcel emphasised the essential nature of broadband internet, especially highlighted during the pandemic, and stressed the need for oversight to maintain fairness and accessibility for all users.
President Joe Biden has endorsed the reinstatement of net neutrality rules, aligning with his July 2021 executive order urging the FCC to restore regulations established under the Obama administration. However, Democrats faced obstacles in reinstating these rules until October 2021, when they gained majority control of the FCC. Despite Republican opposition, Rosenworcel contends that the reclassification offers essential national security measures and empowers the FCC to address equipment concerns from Chinese companies like Huawei and ZTE.
Why does it matter?
While the FCC’s plan faces criticism from Republican Commissioner Brendan Carr, who argues against government control of the internet, proponents highlight increased broadband speeds, reduced prices, and enhanced competition as benefits of net neutrality rules. Despite the 2017 repeal, several states have implemented their net neutrality laws, indicating growing support for equitable internet access nationwide.
The US and UK have announced a partnership on the science of AI safety, with a particular focus on developing tests for the most advanced AI models.
US Commerce Secretary Gina Raimondo and British Technology Secretary Michelle Donelan signed a memorandum of understanding in Washington to collaborate on advanced AI model testing after agreements during the AI Safety Summit at Bletchley Park last November. The joint program will involve the UK’s and US’s AI Safety Institutes working together on research, safety evaluations, and guidance for AI safety.
Why does it matter?
The partnership aims to accelerate the work of both institutes across the full spectrum of AI risks, from national security concerns to broader societal issues. The UK and US plan to conduct at least one joint testing exercise on a publicly accessible model and are considering staff exchanges between the institutes. The two partners are among several countries that have created public AI safety institutions.
In October, British Prime Minister Rishi Sunak said that its AI Safety Institute would investigate and test new AI models. The US announced in November that it was establishing its own institute to assess threats from frontier AI models, and in February, Secretary Raimondo launched the AI Safety Institute Consortium (AISIC) to partner with 200 firms and organisations. The US-UK partnership is intended to strengthen the special relationship between the two countries and contribute to the global effort to ensure the safe development of AI.
The U.S. Department of State and the Government of Mexico are collaborating to assess and potentially enhance Mexico’s semiconductor ecosystem. This partnership falls under the International Technology Security and Innovation (ITSI) Fund, which was established by the CHIPS Act of 2022 to bolster the global semiconductor ecosystem.
The initial phase involves conducting a comprehensive assessment of Mexico’s semiconductor industry, including analysing existing infrastructure, regulatory framework, workforce, and identifying potential areas for growth and improvement. Key stakeholders in Mexico’s semiconductor ecosystem, such as state governments, educational institutions, research centres, and companies, will participate in the analysis, with the involvement of the Secretariat of Economy of Mexico.
The collaboration underscores the significance of a resilient semiconductor supply chain for various industries, including automotive and healthcare. It builds on existing cooperation between the US and Mexico under initiatives like the High-Level Economic Dialogue and the North American Leaders Summit process, while also supporting efforts to enhance regional competitiveness in semiconductors, including workforce development, through initiatives like the Americas Partnership for Economic Prosperity. The CHIPS Act of 2022 allocated funding, creating the ITSI Fund with $500 million over five years to promote secure telecommunications networks and semiconductor supply chain security and diversification.
One day after the US Securities and Exchange Commission (SEC) accused Binance for securities fraud, the Coinbase, a largest US based cryptocurrency exchange, is sued by the SEC. The SEC alleges that cryptocurrency exchange has failed to register its services with the SEC as required by law, resulting in the company making billions of dollars unlawfully facilitating the buying and selling of crypto asset securities. In addition, the SEC alleges that since 2019, Coinbase has been engaging in an unregistered securities offering through its staking-as-a-service program. The SEC’s complaint seeks injunctive relief, disgorgement of ill-gotten gains plus interest, penalties, and other equitable relief.
Inside the suit, the SEC identified tokens issued by foundations and companies or tied to protocols including Solana (SOL), Cardano (ADA), Polygon (MATIC), and Nexo (NEXO) (to name only a few) as securities.
The SEC first warned Coinbase it might sue the cryptocurrency exchange earlier this year, sending a Wells Notice, which Coinbase responded to in April.
In the synchronized actions Coinbase is facing scrutiny from a task force of ten US state securities regulators. Namely in Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin. The Alabama Securities Commission (ASC) has ordered Coinbase to explain within 28 days how it is not violating state securities laws with its staking program.
The California Department of Financial Protection and Innovation (DFPI) has filed for an order for Coinbase to ‘desist and refrain from the further offer and sale of securities in California.’ The ASC and DFPI are motivated by a desire to protect consumers and investors in the decentralized finance space. The claims against Coinbase are that it is offering securities without a permit or other form of qualification in California and that it is violating state securities laws with its staking program.
Coinbase, one of the world’s largest crypto exchanges, has recently received a Digital Asset Business License from the Bermuda Monetary Authority. This move is representative of Coinbase’s strategy to expand internationally, as U.S. regulators have been cracking down on the crypto industry. The US Securities and Exchange Commission (SEC) Chair Gary Gensler recently testified before the House Financial Services Committee and highlighted the tensions between the SEC and congressional Republicans over digital asset regulation.
Coinbase will be opening an offshore derivatives exchange in Bermuda, as reported by Fortune. They have also expanded in Abu Dhabi, Canada, Brazil and Singapore.
Coinbase CEO Brian Armstrong has proposed creating cryptocurrency regulation guidelines in order to address the noncompliance in the crypto market. He has expressed disappointment that the SEC had not provided any feedback during their 30 meetings over the past year. On the other hand, SEC Chair Gary Gensler has argued that crypto investors should receive the same protections as other investors, and that calling oneself a DeFi platform does not excuse noncompliance with securities laws.
Increased pressure from the regulators stat to be mentioned after The US SEC has taken legal action on Coinbase and Tron, and the Binance exchange taking fire from a different US government agency.
