About the Center- Recent Activities
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ABOUT THE CENTER
The Center's goal is to promote and facilitate an exploration of how financial regulation must be modernized to support financial stability, consumer protection, and secure financial networks.
The Center is an independent Virginia nonprofit corporation. It is recognized by the Internal Revenue Service as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
The Center’s Form 990-PF filings are available for review at the
Law Office of T. Michael Jankowski, PLLC
627 S. Washington Street
Alexandria, Virginia 22314
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LATEST CENTER ALERTS:
October 2024
See our latest The Race To Regulate the Internet Alert in which we update significant developments since our August 2024 Alert below. Here are the headlines we discuss in depth in this Alert.
California AG cautions large social media firms regarding election misinformation
Mark Zuckerberg confirms Federal government social media content influence attempts
Robert F. Kennedy Jr. permitted to continue suit against Federal government parties regarding alleged social media content interference
District Court issues order preventing Florida Department of Health from threatening actions to block an advertisement supporting an abortion rights constitutional amendment
Ninth Circuit partially upholds preliminary injunction against California Age-Appropriate Design Code Act
Utah law aimed at protecting children on social media sites enjoined
Texas AG sues General Motors for alleged misleading use of driver data by auto insurance companies
FTC report raises concerns about surveillance and information sharing practices of large social media and video streaming companies
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August 2024
THE RACE TO REGULATE THE INTERNET
Should States or the Federal Government Set the Rules for
Websites Content, Child Protection and Personal Data Control?
We are writing to provide an update on some significant developments since our Race to Regulate the Internet program held on May 8 – video available here: https://youtu.be/5YBTmqFN7To
Headlines:
- Supreme Court returns challenge to State content moderation laws to lower courts for further development
- Supreme Court dismisses injunction against certain federal government contacts with social media firms based on lack of standing by plaintiffs
- Department of Justice Office of Inspector reviews FBI contacts with social media firms regarding foreign threats to U.S. elections in relation to First Amendment considerations
- Congressman calls for investigation of alleged censorship by X of Vice President Harris’ campaign
- New York enacts legislation to protect children online
- White House Task Force on Kids Online Safety makes recommendations for parents and social media companies
- Department of Justice lawsuit alleges TikTok collected data on children less than 13 in violation of the Children’s Online Privacy Protection Act
- Meta to pay $1.4 billion to settle claims regarding unauthorized capture of personal biometric data
State or Federal Government Regulation of, or Influence on, Website Content
- Supreme Court sends Florida and Texas website content restriction cases back for further development, but indicates that State efforts to bring balance to website editorial content decisions are not consistent with First Amendment principles
For most of the life of the internet, States for a variety of reasons, including early unfavorable court decisions, have generally not been inclined to attempt to impose requirements or restriction on private party website content. In recent years, two large States – Florida and Texas, motivated by a perception that some large websites were discriminating against the presentation of conservative viewpoints - enacted laws designed to place requirements or restrictions on website content moderation intended to balance the range of views that are presented.
The Eleventh Circuit Court of Appeals affirmed a district court injunction against the Florida law, finding that the law was not likely to survive a review under the First Amendment. In contrast, the Fifth Circuit Court of Appeals reversed a district court injunction against the Texas law, based upon its determination that the law did not regulate any speech and thus did not implicate the First Amendment.
The Supreme Court’s review of these two laws on appeal was much anticipated. In a July 1 ruling, Justice Kagan joined by Chief Justice Roberts and Justices Sotomayor, Kavanaugh, Barrett and Jackson ruled that the trade association plaintiffs (NetChoice and the Computer & Communications Industry Association (CCIA)) had challenged the laws on their face (as compared to as applied) and thus had the very high burden of showing that a substantial number of a law’s applications are unconstitutional, judged in relation to the statute’s plainly legitimate sweep. The Court stated that the parties and the courts below had limited their analysis to a relatively narrow scope of website activities rather than address the full range of activities the laws covered and measure the constitutional versus unconstitutional applications of the law. Thus, the Court held that the parties had not briefed the critical issues, and the record was underdeveloped. As a result, the Court vacated the lower court decisions and remanded the cases for further consideration.
The Court went on to provide guidance for this further consideration. It indicated that it wanted to avoid having the Fifth Circuit conduct further proceedings on the basis that its First Amendment analysis was correct, where the Court found that the Fifth Circuit’s conclusions involved a serious misunderstanding of the Court’s First Amendment precedent. The Court stated that the Fifth Circuit was wrong in concluding that the restrictions placed on a website’s selection and presentation of content do not interfere with expression. Furthermore, it observed that the Fifth Circuit was wrong to treat as valid Texas’ interest in changing the content on the website’s feeds, in order to better balance the marketplace of ideas. The Court further observed that the Eleventh Circuit saw the First Amendment issues in the case much as the Court does.
Justice Alito, joined by Justices Thomas and Gorsuch, wrote that the only binding holding in the decisions was that the plaintiffs have yet to prove that the laws they challenged are facially unconstitutional, with which they agreed. He went on to take issue with much of the majority’s analysis.
We were fortunate to have representatives of CCIA (Stephanie Joyce) and NetChoice (Carl Szabo) join us as panelists at our May 8 program.
Moody v. NetChoice, 22-277_d18f.pdf (supremecourt.gov)
2. Supreme Court turns away an effort to restrict Federal government communications with websites allegedly aimed at coercing the websites to suppress content disfavored by the government based on lack of standing by plaintiffs
On June 26, the Supreme Court reversed a Fifth Circuit ruling granting a preliminary injunction to two States (Missouri and Louisiana) and five individuals based on allegations that Executive Branch agencies and officials had pressured certain websites to suppress protected speech in regard to COVID-19 (White House, CDC, Surgeon General) and the 2020 Election (FBI and CISA) in violation of the First Amendment. The injunction provided that the defendants and their employees shall not coerce or significantly encourage social media companies to remove, suppress, or reduce posted content containing protected free speech.
Justice Barrett wrote the Court’s opinion. She reviewed the allegations of the individual plaintiffs that the actions of the government had caused platforms to censor their content at the behest of the government and that this would continue to occur. The individual plaintiffs also argued that they had suffered injury to their right to listen to others. The States asserted a sovereign interest in hearing from their citizens on social media. In all instances the Court found that the plaintiffs had failed to demonstrate that they had standing to pursue their claims and reversed the ruling of the Fifth Circuit.
Justice Alito, joined by Justices Thomas and Gorsuch, dissented. He wrote that one of the individual plaintiffs had shown that Facebook’s censorship of her content resulted at least in part from the White House’s prompting of Facebook to amend its censorship policies, and therefore had standing. Justice Alito asserted that the government officials with potent authority had communications with Facebook that were virtual demands and that Facebook’s response showed that it felt a strong need to yield. As a result he concluded that the individual plaintiff was likely to prevail on her claim that the White House coerced Facebook into censoring her speech.
Murthy v. Missouri, 23-411_3dq3.pdf (supremecourt.gov)
3. Department of Justice (DOJ) Office of Inspector General’s (OIG)Report on DOJ’s Sharing of Information About Foreign Malign Influence Threats to U.S. Election
As part of a report on the DOJ’s efforts to deal with foreign efforts to interfere with U.S. elections through information sharing inside and outside of the government, issued on July 23, the OIG touched on some of the issues presented in the Murthy case.
The OIG found that the DOJ did not have a comprehensive strategy guiding its approach to engagement with social media companies in regard to foreign malign influence threats (FMITs) on U.S. Elections, which the OIG believes creates a risk to the DOJ. The OIG observed that the FBI must be mindful that its interactions with social media companies could be perceived as coercion or significant encouragement aimed at convincing social media companies to limit or exclude speech posted by it users, which may implicate First Amendment protections, noting the Fifth Circuit’s opinion in Murthy.
During the course of its review the OIG recommended that the DOJ develop an approach to inform the public of its procedures for transmitting notices of (FMITs) to social media companies that is protective of First Amendment rights. The DOJ indicated that during the course of the lower court proceedings in Murthy in October 2023 it began developing a standardized approach for sharing FMITs with social media companies that appropriately accounts for First Amendment concerns.
This process led to the issuance of a standard operating procedure (SOP) that went into effect in February 2024. The DOJ stated that the SOP reflects the principle that it is permissible to share FMITs with social media companies, as long as it is clear that ultimately it is up to the company whether to take any action, including removing content or barring users based on such information.
OIG Press release DOJ OIG Releases Report of Investigation Regarding Alleged Unauthorized Contacts by FBI Employees with the Media and Other Persons in Advance of the 2016 Election (justice.gov), OIG Report 24-080.pdf (justice.gov)
4. Representative Nadler calls for Congressional investigation of alleged censorship by X related to Vice President Harris’s campaign for President
To date, complaints about website censorship have come largely from conservatives inspiring, among other things, the Texas and Florida laws at issue in NetChoice v. Moody. In a change of pace, on July 23, Representative Jerrold Nadler, a Democrat from New York who is the Ranking Member on the House Judiciary Committee, wrote to Committee Chairman Jim Jordan regarding alleged censorship of Vice President Kamala Harris’ campaign handle on X.
Representative Nadler stated that numerous users reported that over the past two days when they tried to follow @KamalaHQ they received a “Limit Reached” message stating that the user is “unable to follow more people at this time.” He said that the messages do not make any sense as these users are otherwise free to follow other accounts. He stated that “[t]his suggests that X may be intentionally throttling or blocking Vice President Harris’ ability to communicate with potential voters. If true, such action would amount to egregious censorship based on political and viewpoint discrimination – issues this Committee clearly has taken very seriously.” Representative Nadler requested that the Committee immediately launch an investigation and request specified information from X.
Representative Nadler’s Letter 2024-07-23_jn_to_jdj.pdf (house.gov)
Protection of Children on the Internet
5. New York enacts legislation to protect children online
Recently many states have enacted laws to either require age verification for access to adult content websites or parental consent for children’s access to social media sites. New York now joins California in taking a different approach to seeking to protect children online.
In 2022 California enacted the California Age-Appropriate Design Code Act which requires businesses that offer online products or services to include or exclude certain design features in order to protect children in connection with their online products or services likely to be accessed by children. On September 18, 2023, a Federal District Court in California issued a preliminary injunction against the law finding that it was likely that it violated the First Amendment. The Ninth Circuit heard oral argument on California’s appeal on July 17.
California Age-Appropriate Design Act Bill Text - AB-2273 The California Age-Appropriate Design Code Act., Preliminary injunction against The California Age-Appropriate Design Code Act NETCHOICE-v-BONTA-PRELIMINARY-INJUNCTION-GRANTED.pdf
On June 20, 2024, New York Governor Kathy Hochul signed two pieces of legislation intended to protect children online. She said “[y]oung people across the nation are facing a mental health crisis fueled by addictive social media feeds – and New York is leading the way with a new model for addressing the crisis and protecting our kids.” She further observed that “[b]y reining in addictive feeds and shielding kids’ personal data, we’ll provide a safer digital; environment, give parents more piece of mind, and create a brighter future for young people across New York.”
The Stop Addictive Feeds Exploitation (SAFE) for Kids act (SAFE Act) targets “addictive feeds”. It prohibits users under 18 viewing addictive feeds on social media platforms without parental consent. It also prohibits platforms from sending notifications to minor from 12:00 am to 6:00 p.m.
The New York Child Data Protection Act prohibits online sites from collecting, using, sharing or selling personal data of anyone under the age of 18, unless they receive informed consent or unless doing so is strictly necessary for the purpose of the website. For users under 13, informed consent must be provided by a parent.
SAFE Act S7694A (nysenate.gov), Child Data Protection Act s7695b (nysenate.gov)
We were fortunate to have Utah State Senator Michael McKell, the sponsor of Utah’s social media parental consent law, join us a panelist at our May 8 program.
6. Kids Online Health and Safety Task Force announces recommendations and best practices for safe internet use
On July 22, the Kids Online Health and Safety Task Force comprised of representatives of the White House, the Department of Health and Human Services, the Department of Commerce, the Department of Education, the Federal Trade Commission, the Department of Homeland Security and the DOJ issued a document titled Best Practices for Family and Guidance for Industry.
The report identifies key risks and benefits of online platforms and digital technologies to young people’s health, safety and privacy. It provides best practices for parents and recommended practices for companies. Recommended practices include:
- Designing age-appropriate experiences for youth users.
- Making privacy protections for youth the default.
- Reduce and remove features that encourage excessive or problematic use by youth.
- Provide age-appropriate parental control tools that are easy to understand and use. A number of State children’s online protection laws include requirements for parental consent for social media use. The report instead appears to focus on parental controls within a particular online platform, noting that they can help parents exercise more control of their children’s online experience, but cautioning that parental controls may be invasive to young people’s privacy, and commenting that a one-size-fits-all approach may not be appropriate for many families.
The report describes a series of initiatives that various Federal agencies are undertaking in support of kids online safety. The report also calls on Congress to enact legislation to protect youth online. It states that such legislation should include prohibiting platforms from collecting personal data from youth, banning targeted advertising, and implementing measures to keep children safe from those who would use online platforms to harm, harass, and exploit them.
White House Kids Safety Task Force press release Kids Online Health and Safety Task Force Announces Recommendations and Best Practices for Safe Internet Use | HHS.gov
7. DOJ sues TikTok for alleged collection of data on children under 13 in violation of the Children’s Online Privacy Protection Act (COPPA)
On August 2, the DOJ filed suit against TikTok and affiliated entities alleging that over the past five years TikTok knowingly permitted children under 13 to create regular TikTok accounts while collecting and retaining personal information for the children without notifying or obtaining consent from their parents. The DOJ further alleged that even as to accounts intended for children under 13, TikTok unlawfully collected and retained certain personal information. Moreover, the DOJ that when parents learned of their children’s accounts and requested TikTok to delete the accounts and related information, TikTok frequently failed to do so. The DOJ’s suit notes that the alleged actions occurred despite being subject to court order prohibiting the companies from violating COPPA and imposing measures to ensure compliance with the law. The suit seeks civil penalties and injunctive relief.
The DOJ’s press release asserted that TikTok’s COPPA violations have resulted in millions of children under 13 using the regular TikTok app, thereby subjecting them to extensive data collection and allowing them to interact with adult users and to access adult content. It stated that the Department is deeply concerned that TikTok has continued to collect and retain children’s personal information despite a court order barring such conduct.
DOJ press release Office of Public Affairs | Justice Department Sues TikTok and Parent Company ByteDance for Widespread Violations of Children’s Privacy Laws | United States Department of Justice, DOJ complaint dl (justice.gov)
Personal Data Control
8. Meta agrees to pay $1.4 billion to settle a suit by the Texas Attorney General regarding allegations that Meta was unlawfully capturing biometric data of users
On July 31, the Texas Attorney General’s Office announced that it had entered into a settlement agreement with Meta to stop the company’s capture and use of personal biometric data of millions of Texans without authorization as required by Texas law. The Texas AG stated that this was the first lawsuit and settlement that had been brought under the Texas Capture or Use of Biometric Identifier Act (CUBI).
According to the AG the suit involved a feature introduced in 2011 that made it easier to for users to tag photos with the names of people in the photos. The AG said that Meta automatically turned this feature on without explaining how it worked, and that for more than a decade it ran facial recognition software on faces uploaded to Facebook, capturing the facial geometry of those faces. The AG alleged that Meta did this despite knowing that CUBI forbids companies from capturing such biometric identifiers of Texans unless the company first informs the person and receives their consent to do so.
Under the settlement, Meta will pay Texas $1.4 billion over five years, which the AG described as the largest privacy settlement an Attorney General has ever obtained.
Texas AG press release Attorney General Ken Paxton Secures $1.4 Billion Settlement with Meta Over Its Unauthorized Capture of Personal Biometric Data In Largest Settlement Ever Obtained From An Action Brought By A Single State | Office of the Attorney General (texasattorneygeneral.gov), Agreed Final Judgment Final State of Texas v Meta Order 2024.pdf (texasattorneygeneral.gov), Texas AG’s February 2022 suit against Meta State of Texas v. Meta Platforms Inc..pdf (texasattorneygeneral.gov)
- Jean-Pierre Auffret, GeorgeMason University’s Director, Research Partnerships, School of Business; Director, Center for Assurance Research and Engineering (CARE), College of Engineering & Computing, [email protected]
- Thomas P. Vartanian, Executive Director of the Financial Technology & Cybersecurity Center, Author, The Unhackable Internet: How Rebuilding Cyberspace Can Create Real Security and Prevent Financial Collapse, [email protected]
- Robert H. Ledig, Managing Director of the Financial Technology & Cybersecurity Center, [email protected]
LATEST PROGRAMS
May 8, 2024
The Race to Regulate the Internet:
Should States or the Federal Government Set the Rules for Website Content, Child Protection and Personal Data Control?
Featuring a blockbuster group of luminaries debating the issues and predicting where online regulation will go
Presented in conjunction with George Mason University's Center for Assurance Research and Engineering and the School of Business
Sponsored by
Financial Technology & Cybersecurity Center
and
George Mason University School of Business
Center for Assurance Research and Engineering(CARE)
and
George Mason University College of Engineering & Computing
The program was moderated by technology experts:
Dr. Jean-Pierre Auffret, George Mason University’s Director, Research Partnerships, School of Business; Director, Center for Assurance Research and Engineering (CARE), College of Engineering & Computing
Thomas P. Vartanian, Executive Director of the Financial Technology & Cybersecurity Center, Author, The Unhackable Internet: How Rebuilding Cyberspace Can Create Real Security and Prevent Financial Collapse
Expert presenters included:
- Adam Candeub – Professor of Law & Director of the Intellectual Property, Information & Communications Law Program, Michigan State University Law School
- Michael Cheah – Advisor, The Internet Works
- Robert Coles, Head of Security Strategy, D S Smith, Former Chief Information Security Officer – Merrill Lynch, National Grid, GlaxoSmithKline
- Josh Devine – Missouri Solicitor General
- Alysa Hutnik – Partner, Kelly Drye
- Stephanie Joyce – Chief of Staff and Senior Vice President, Computer & Communications Industry Association
- Julia Mahoney - John S. Battle Professor of Law, University of Virginia School of Law
- Michael McKell – Utah State Senator
- John Morris – Principal, U.S. Internet Policy and Advocacy, Internet Society
- Christopher Oswald – Executive Vice President, Head of Law, Ethics & Government Relations, Association of National Advertisers
- Michael Signorelli - Partner, Venable LLP
- Carl Szabo – Vice President & General Counsel, Net Choice
- Hayley Tsukayama – Associate Director of Legislative Activism, Electronic Frontier Foundation
To view the event in full, click on these links:
Panel 1:https://youtu.be/XCMODlibljI
Panel 2:https://youtu.be/OWhaSdtldGQ
Panel 3:https://youtu.be/_Zwi5zSa_RY
Full Event:https://youtu.be/5YBTmqFN7To
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May 4, 2023
"Escalating Cyber Threats to the U.S Financial System:
Time to Think Outside the Box"
Sponsored by
Financial Technology & Cybersecurity Center
and
George Mason University School of Business
Center for Assurance Research and Engineering(CARE)
and
George Mason University College of Engineering & Computing
The faculty was moderated by cybersecurity experts:
- Jean-Pierre Auffret, George Mason University’s Director, Research Partnerships, School of Business; Director, Center for Assurance Research and Engineering (CARE), College of Engineering & Computing
- Thomas P. Vartanian, Executive Director of the Financial Technology & Cybersecurity Center
Keynote Address:
Brian Peretti, Director, Domestic and International Cyber Policy, Office of Cybersecurity and Critical Infrastructure Protection, U.S. Department of Treasury, will make Keynote Remarks
Cybersecurity Experts included:
- Stewart Baker, Of Counsel, Steptoe
- Emily Beam, Senior Vice President, Cyber Risk Institute
- John Carlson, Vice President, Cybersecurity Regulation and Resilience, ABA
- Robert Coles, Head of Security Strategy, D S Smith, Former Chief Information Security Officer – Merrill Lynch, National Grid, GlaxoSmithKline
- Steve Crocker, CEO and co-founder, Shinkuro
- James Dever, Cofounder and Principal, Lockhaven Solutions LLC; formerly U.S. Air Force Professor of Cyber Warfare
- John Geiringer, Barack Ferrazzano Kirshbaum & Nagelberg LLP
- Adam Golodner, Managing Partner, AMG Global Cyber Law, PLLC, CEO, Vortex Strategic Consulting, Co-Chair, Trusted Future
- Murray Kenyon, Cybersecurity Partnership Executive, U.S. Bank
- Jenny Menna, Vice President, Threat Management and Response, Humana
- Lisa Quest, Partner, Co-Head of the Public Sector and Policy Practice, Europe, Oliver Wyman, Co-author, Digital Trust: How Banks Can Secure Our Digital Identity; Joint Report with the International Banking Federation
- Craig Schwartz, Managing Director, fTLD Registry -.Bank
- Marilyn Smith, IT Consultant, Former Chief Information Officer - George Mason University, Massachusetts Institute of Technology
- Scott Volmar, CEO, Intercomputer Network Corp
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March 16, 2023
Statement on Deposit Insurance in Light of the
Collapse of Silicon Valley Bank
A New Idea for Deposit Insurance
The events of the last week demonstrate that federal deposit insurance may no longer be structured to maximize customer confidence and systemic stability. While it was originally created to protect small individual savers, small and large businesses routinely and necessarily maintain daily operating accounts in banks that exceed the current $250,000 deposit insurance limitation. As a result, those depositors are at risk and likely to move their accounts to banks that they consider safer at the first sign of trouble. Recent reports indicate numerous large regional banks hold more than 50% of their deposits in an uninsured status. This threat to financial stability will continue as long as there is a widespread belief that uninsured depositors at the very largest institutions are safe, while uninsured depositors at all other banks, including large regional banks, are at risk.
To mitigate this threat, Congress could amend the Federal Deposit Insurance Act to provide that all deposits at U.S. offices of FDIC-insured institutions may be insured above the current $250,000 limit if the depositor opts into a new supplemental insurance program. In that case, a fee based on, among other things, the average prior month size of the deposit, would automatically be deducted from the account on the first business day of a month. The fee would be paid directly to the FDIC and would be placed in the Deposit Insurance Fund. In contrast, in the event of a bank failure, uninsured deposits would be required to be retained in the receivership, where the uninsured depositors would only be paid out as receivership assets became available. With such a system in place, each bank customer with a deposit in excess of $250,000 would be provided the clear choice to either pay a monthly charge to insure any amount above that level, or assume the risk of being uninsured.
Deposit insurance has historically been a critical factor in maintaining confidence in the U.S. banking system. Today’s circumstances call for an innovative new approach that gives customers the opportunity to decide how much they value the availability of that coverage by voting with their wallets.
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March 29, 2023
The American Enterprise Institute
Presented
Rebuilding Cyberspace to Prevent Financial Collapse: A Book Event
A presentation of and discussion about:
The Unhackable Internet: How Rebuilding Cyberspace Can Create Real Security and Prevent Financial Collapse
Author: Thoma P. Vartanian
See event here:
https://www.aei.org/events/rebuilding-cyberspace-to-prevent-financial-collapse-a-book-event/
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The Financial Technology & Cybersecurity Center
&
The Growing Cybersecurity Threat
Executive Director Thomas P. Vartanian discusses the role of the Center and how it plans to promote sound public policy with regard to the growing number of financial infrastructure cybersecurity threats in this 30-minute podcast interview.
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Wall Street Journal Opinion Article
by
Thomas P. Vartanian:
February 10, 2023
Biden Plays the Junk Card
https://www.wsj.com/articles/biden-plays-the-junk-card-banks-credit-card-financial-regulation-fees-loans-interest-rates-borrowing-congress-consumer-financial-protection-bureau-e704f16?mod=opinion_lead_pos6
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Homeland Security Today Interview
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America Trends Podcast
If You Lock Your Front Door, Your Home Is Better Protected Than Your Digital Life
https://www.americatrendspodcast.com/2023/02/09/ep-628-if-you-lock-your-front-door-your-home-is-better-protected-than-your-digital-life/
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The Curious Mans Podcast
A Conversation with Thomas P. Vartanian:
The Unhackable Internet: How Rebuilding Cyberspace Can Create Real Security and Prevent Financial Collapse
https://podcasts.apple.com/us/podcast/tom-vartanian-interview/id1369458829?i=1000600182338
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The Shelley Irwin WGVU Morning Show
Grand Rapids MI (NPR)
A Conversation with Thomas P. Vartanian:
The Unhackable Internet: How Rebuilding Cyberspace Can Create Real Security and Prevent Financial Collapse
https://www.wgvunews.org/people/shelley-irwin
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The Chris Voss Show:
A Conversation with Thomas P. Vartanian
The Unhackable Internet: How Rebuilding Cyberspace Can Create Real Security and Prevent Financial Collapse
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Keen On:
How We Built the Wrong Internet: An Interview with Thomas P. Vartanian on Rebuilding Cyberspace to Make it "Unhackable"
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BBC Radio Interview:
"Crypto, the Collapse of FTX, and Where Regulation Goes From Here"
Listen as Executive Director Thomas P. Vartanian participates in a terrific BBC World Business Report debate/interview about crypto and the collapse of FTX
https://www.bbc.co.uk/programmes/p0ds9phy
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ARCHIVED CENTER PROGRAMS:
Live & Online Programs
December 7, 2022
* Executive Roundtable Discussion *
“Demystifying Artificial Intelligence: Its Impact on Finance and Regulation”
View the entire program here:
https://fast.wistia.net/embed/channel/ur4k40a0hm?wchannelid=ur4k40a0hm&wvideoid=zmc47kj4me
President Biden’s recent Executive Memo on Artificial Intelligence, Blueprint for an AI Bill of Rights: Making Automated Systems Work for the American People, focuses on the growing influence of AI technologies. While AI can dramatically improve the delivery and regulation of financial services, novel algorithms and the ways that they are used add new complexities to compliance and the potential for inadvertent discrimination. That suggests the early adoption of standards and rules of engagement to ensure that Americans are protected from as much as they are assisted by AI.
Moderated by:
Thomas P. Vartanian
Executive Director, Financial Technology & Cybersecurity Center
Brian Knight
Director of Innovation and Governance and a Senior Research Fellow, The Mercatus Center at George Mason University
Experts included:
Brad Blower, General Counsel, National Community Reinvestment Coalition
Neil Chilson, Senior Research Fellow, Technology and Innovation at Stand Together
Carol Evans, Deputy Fair Lending Director, Consumer Financial Protection Bureau
Dr. Mark Flood, Program Manager, Information Innovation Office, Defense Advanced Research Projects Agency
Phillip Hurst, Assistant General Counsel, Card Data Sciences & Machine Learning, Capital One
Melissa Koide, CEO & Director, The FinReg Lab
Kevin Greenfield, Deputy Comptroller for Operational Risk Policy, Office of the Comptroller of the Currency
Tommy Jones, Senior Technology Architect, Enterprise Technologies, In-Q-Tel
Melissa Koide, CEO, FinRegLab
Brenda Leong, Partner, BNH AI
William Magnunson, Professor of Law, Texas A&M University School of Law
Matt Mittelsteadt, Visiting Research Fellow, Mercatus Center
Weifeng Zong, Senior Research Fellow, Mercatus Center
* * * * * *
April 27, 2022
"THE IMPACT OF STABLECOINS ON FINANCIAL REGULATION, CONSUMERS AND POLITICS"
An Executive Roundtable discussion moderated by Financial Technology & Cybersecurity Center (FTCC) Executive Director Thomas P. Vartanian and Conference on Consumer Finance Law (CCFL) Chairman James M. Milano with distinguished guests:
- Brian P. Brooks, CEO, Bitfury, former Acting Comptroller of the Currency
- Jelena McWilliams, former FDIC Chair
- Randal K. Quarles, Chairman, The Cynosure Group, former Vice Chairman for Supervision, Federal Reserve Board
Join the nearly 700 registrants of this program and watch it here:
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OTHER CENTER STATEMENTS
March 3, 2023
The Center's Executive Director issued a Statement on the White House National Cybersecurity Strategy (March 2023)
STATEMENT OF
Thomas P Vartanian, Executive Director
Regarding:
The Biden Administration’s National Cybersecurity Strategy
https://www.whitehouse.gov/wp-content/uploads/2023/03/National-Cybersecurity-Strategy-2023.pdf
March 3, 2023
As Executive Director of the Financial Technology & Cybersecurity Center, I believe that enlightened federal government leadership is essential to guiding our nation to a stronger position in confronting cybersecurity threats. In that context, I have analyzed every White House pronouncement on cybersecurity in the last 25 years. That analysis is included in my new book, The Unhackable Internet.
From that perspective, the Biden Administration's National Cybersecurity Strategy does indeed advance national cybersecurity policy. It recognizes that the Internet is ill constructed for the roles it is expected to play - an important first step in fixing it. In addition, its proposal to alter economic incentives and impose greater liabilities to drive companies to maximize their cybersecurity efforts and secure data would make a difference. The release also correctly concludes that the U.S. must stand up and lead the democratic nations of the world to forge new cybersecurity solutions.
But it falls short in suggesting that we can correct the structural deficiencies of the Internet if we simply run faster to get ahead of them. It avoids any discussion of real solutions such as building new secure private networks for critical infrastructures where, for example, authentication is enhanced and anonymity is prohibited. It also seems to presume that the current cybersecurity challenge, which is not within the control of any one government, is correctable through more government involvement. Finally, it fails to provide a compelling reason why its repetition of the same government admonitions will this time alter the record of acute ineffectiveness by policymakers over the last twenty-five years.
Sadly, the insecurity of the Internet won’t be solved until businesses and users conclude that the costs of vulnerability and the loss of privacy have reached the point of no return. Then the private sector will act, and governments will follow. By then, everyone will wish that we had built a different and safer kind of online existence.
To stay informed and receive periodic alerts from the Center, visit https://fintsc.org/stay-informed/
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March 9, 2022
STATEMENT OF
Thomas P Vartanian, Executive Director
Comments on
White House Executive Order on Crypto
Cryptocurrencies are the modern-day equivalency of the money market funds of the 1980s, which both revolutionized and destabilized financial markets. We would have hoped the government learned its lesson in how to regulate such new financial products.
Although much anticipated, the Executive Order does not pack any substantive punch and adds very little. It adheres to the long-standing approach over the last twenty-five years of directing some two dozen different agencies to coordinate action and require the creation of dozens of reports.
While no fault of the Biden Administration, the admonitions in the Order are fourteen years too late in trying to bring rationality, security, and stability to an unregulated industry that is actually more than $10 trillion in size when derivative cryptocurrency instruments and leverage are included.
The Order continues to miss the fundamental point that crypto-assets – including Central Bank Digital Currencies (CBDC) - require security which will never be achieved unless we build a new Internet that favors enhanced authentication, identification, governance, and enforcement of standardized rules..
To the extent that administrations and Congress continue to be incapable of confronting the fundamental issues posed by crypto-assets and balancing them with the need for technological innovation, it leaves to the financial regulators the job of reasserting American leadership as the Order seeks to achieve.
* * * * * *
OTHER CENTER ACTIVITIES
Listen to these interviews in July 2022
with Executive Director Thomas P. Vartanian about the U.S. economy:
The WealthFormula:
A Conversation with Executive Director Thomas P. Vartanian about
200 Years of American Financial Panics: Crashes, Recessions, Depressions And The Technology That Will Change It All
https://www.wealthformula.com/podcast/326-200-years-of-financial-panics/
and
The Next Financial Bust:
A Conversation with Executive Director Thomas P. Vartanian
https://thecashflowacademy.libsyn.com/the-next-financial-bust
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RECENT PUBLICATIONS
Executive Director Thomas P. Vartanian Op-Eds:
July 9, 2023, The Messenger
The Too-Comfortable Danger of ‘Bidenomics’
https://themessenger.com/opinion/the-too-comfortable-danger-of-bidenomics
* * * * * * *
June 29, 2023, The Hill
A rebellion at the Federal Reserve — can it avoid the next bank collapse?
* * * * * * *
June 21, 2023, The Messenger
Congress Isn’t Protecting Children From the Internet, So States Are Doing the Job
* * * * * * *
June 16, 2023, The Hill
Our failing banks and the capital con game
https://thehill.com/opinion/finance/4051734-our-failing-banks-and-the-capital-con-game/
* * * * * * *
June 9, 2023, The Hill
Lending laws are changing — and borrowers could pay the price
* * * * * * *
May 2, 2023, The Hill
The Fed wants more power after the banking collapse. We need real reform — and less Fed
* * * * * * *
May 1, 2023, The Hill
No, Federal Home Loan Banks didn’t cause the SVB collapse
https://thehill.com/opinion/finance/3981758-no-federal-home-loan-banks-didnt-cause-the-svb-collapse/
* * * * * * *
April 26, 2023, Harvard Business Review
There’s No Silver Bullet for Cybersecurity
https://hbr.org/2023/04/theres-no-silver-bullet-for-cybersecurity?ab=hero-subleft-1
* * * * * * *
April 23, 2023, The Hill
This banking crisis was preventable — and so is the next one
* * * * * * *
April 3, 2023, The Hill
Artificial intelligence must be regulated. But by whom?
* * * * * * *
March 17, 2023, The Hill
It took 40 years, but we got a new S&L crisis
It took 40 years, but we finally got a new S&L crisis | The Hill
https://thehill.com/opinion/finance/3904674-it-took-40-years-but-we-finally-got-a-new-sl-crisis/
* * * * * * *
March 11, 2023, The Hill
We should be thanking Sam Bankman-Fried
https://thehill.com/opinion/finance/3894309-we-should-be-thanking-sam-bankman-fried/
* * * * * * *
March 5, 2023, Merion West
Who Will Fix a Broken Internet Landscape Before It Is Too Late?
https://merionwest.com/2023/03/05/who-will-fix-a-broken-internet-landscape-before-its-too-late/
* * * * * * *
February 23, 2022, Democracy Paradox
The Price of Financial Stability in a Digital Economy
The Price of Financial Stability
https://democracyparadox.com/2023/02/23/the-price-of-financial-stability-in-a-digital-economy/
* * * * * *
February 10, 2023, Wall Street Journal
Biden Plays the Junk Card
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February 1, 2023, Cyber Defense Magazine
Time to Build an Unhackable Internet
https://cyberdefensemagazine.tradepub.com/free/w_cyba147/
* * * * * * *
January 9, 2023, The Hill
Death of the Crypto Formula
https://thehill.com/opinion/finance/3804444-death-of-the-crypto-formula/
* * * * * *
December 12, 2022, Financial Times
FTX’s predictable failings show the need for crypto regulation
https://www.ft.com/content/0ea1eb28-7f70-4b50-a50b-bac3ea8151a4
* * * * * *
October 7, 2022, The Hill
Rough economic waters ahead: Will we choose wisely?
* * * * * *
September 24, 2022, Kiplinger
Cryptocurrency: Stay In? Get Out? How to Decide?
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September 13, 2022, The Hill
Biden’s college loan forgiveness misses the point
https://thehill.com/opinion/education/3640714-bidens-college-loan-forgiveness-misses-the-point/
* * * * * *
September 2, 2022, The Hill
With former FDIC Chairman William M. Isaac
Biden’s student loan bailout and the death of skin in the game
* * * * * * *
August 19, 2022, The Hill
What’s our plan to stop China’s acquisition of America?
* * * * * * *
July 21, 2022, The Hill
Blinded by the light: 7 red flags about cryptocurrencies we completely missed
* * * * * * *
July 1, 2022, The Hill
With former SIPC President & CEO Stephen P. Harbeck
This crypto winter is warm compared to the next one
https://thehill.com/opinion/finance/3544051-this-crypto-winter-is-warm-compared-to-the-next-one/
* * * * * * *
June 30, 2022, The Business Observer
With former FDIC Chairman William M. Isaac
Time to get smart about financial technology – and how to regulate the $10T industry
* * * * * * *
June 16, 2022, The Hill
With former Chairman of the FDIC William M. Isaac
Ten economic warning signs policymakers ignored
https://thehill.com/opinion/finance/3525430-ten-economic-warning-signs-policymakers-missed/
* * * * * * *
May 13, 2022, The Hill
Is crypto too cool to question?
https://thehill.com/opinion/finance/3486951-is-crypto-too-cool-to-question/
* * * * * * *
April 6, 2022, American Banker
"What the president’s crypto order should have said"
https://www.americanbanker.com/opinion/what-the-presidents-crypto-order-should-have-said
* * * * * * *
March 21, 2022, The Hill
With former FDIC Chairman William M. Isaac
From economic sleight of hand to stark reality
* * * * * * *
March 10, 2022, The Hill
Strong banks are essential to national security
* * * * * *
OTHER RECENT APPEARANCES
(A complete list is at www.thomasvartanian.com)
May 4, 2023
GMU Center for Assurance Research & Engineering, GMU School of Business, and the Financial Technology & Cybersecurity Center
Emerging Threats to the Financial Services Industry
* * * * * * *
May 1, 2023, BBC Radio
The First Republic Failure – What is Happening in the U.S. Banking Crisis?
https://www.bbc.co.uk/sounds/play/w3ct4zd3?partner=uk.co.bbc&origin=share-mobile
(4:40 – 11:17)
* * * * * * *
March 29, 2023
American Enterprise Institute
The Unhackable Internet
Rebuilding Cyberspace to Prevent Financial Collapse: A Book Event
https://www.aei.org/events/rebuilding-cyberspace-to-prevent-financial-collapse-a-book-event/
* * * * * * *
March 3, 2023
Homeland Security Today
* * * * * *
December 30, 2022
Thomas P. Vartanian was interviewed regarding Crypto and the FTX Collapse on
BBC World Business Report Radio
https://podcasts.apple.com/lt/podcast/the-future-of-crypto/id292651411?i=1000591733229 and
https://www.bbc.co.uk/programmes/p0ds9phy
* * * * * *
November 16, 2022
Fox Business News Tonight
FTX and The Need to Regulate Crypto
https://video.foxbusiness.com/v/6315637311112#sp=show-clips
* * * * * *
August 4, 2022
Executive Director Thomas P. Vartanian spoke on
"The Dark Side of Fintech - Dark Data & Cybersecurity"
Federal Reserve Bank of Philadelphia
Sixth Annual Fintech Conference -
https://web.cvent.com/event/6ffcfe28-ed18-4f26-9abb-e339a48e7825/summary
* * * * * *
July 5, 2022
Thomas P. Vartanian appeared on the Cash Flow Academy podcast - "The Next Financial Bust"
https://thecashflowacademy.libsyn.com/the-next-financial-bust
* * * * * *
May 19, 2022
Thomas P. Vartanian signed his book
200 Years of American Financial Panics: Crashes, Recessions, Depressions And The Technology That Will Change It All
at the Sarasota1Bookstore
2022 Local Author Book Fair | Bookstore1Sarasota (sarasotabooks.com)
* * * * * * *
May 17, 2022, American Enterprise Institute
Executive Director Thomas P, Vartanian spoke
A Conversation with Sen. Cynthia Lummis (R-WY): Regulation and the Future of Crypto Assets
* * * * * * *
May 17, 2022, The Federalist Society
Executive Director Thomas P. Vartanian spoke
The Government's Arm Around Cryptocurrency: Hug or Stranglehold
https://fedsoc.org/events/the-government-s-arms-around-cryptocurrency-hug-or-stranglehold
* * * * * * *
April 1, 2022
EXECUTIVE DIRECTOR THOMAS P. VARTANIAN
DELIVERED THE
ANNUAL BLEISCHER ADDRESS
AT
The University of North Carolina School of Law's Center for Banking and Finance
* * * * * * *