Cybersecurity & Tech

What is happening? As a result of COVID and a ransomware attack, Lincoln College, a predominantly Black college, in Iowa is closing after 157 years. 157 years!

Why is this important? After making costly tech investments to accommodate COVID, in December 2021, a ransomware attack “walled off the school’s access to its data and halted its recruitment, retention and fund-raising campaigns.”

How will this be important? a forewarning for other institutions.

Government Technology | Lincoln College Closure Is Just Another Ransomware Milestone

What is happening? Cities are being priced out of cyber insurance. Premium rates are rapidly increasing while at the same time warnings of hackers increase since the invasion of the Ukraine. Some cities are responding by self insuring. Some are ensuring that their vendor contracts require quick notification, and some adopt technology that can automatically check their websites for vulnerabilities.

Why is this important? 49% of city agencies that experience ransomware pay the ransom.

How will this be important? Led to cities self insuring. States are passing legislation that prevents the payment of ransoms.

Government Technology | Local Governments Seek Other Options Amid Cyber Insurance Woes

What is happening? Cleveland’s  Community Police Commission has offered recommendations concerning technology use by law enforcement. Created in 2015 as a result of investigations into excessive use of force.

Why is this important? This oversight commission has the goal of protecting residents’ civil rights.

How will this be important? The recommendations support embracing new technologies while establishing best practices for a “successful, crime prevention strategy without sacrificing trust or impacting civil liberties,”

Governing | Cleveland Commission Advises Oversight on Emerging Police Tech

What is happening? COVID led hospitals to increase their internet capable technologies to limit contact and improve communication of health care information.

Why is this important? This rapid use of new technology by hospitals also gave nefarious hackers an opportunity. Hacks have led to delayed surgeries, cancer treatment, lab results, maturity appointments and more.

How will this be important? “In 2020 and 2021, there were at least 168 ransomware attacks affecting 1,763 clinics, hospitals and health care organizations in the U.S., according to Brett Callow, a threat analyst for cybersecurity company Emsisoft.”

Route Fifty | Ransomware Attacks on Hospitals Put Patients at Risk

What is happening? This month, Gucci will begin accepting crypto currency at US stores.

Why is this important? Gucci has identified 10 tokens it will accept including bitcoin and Ether.

How will this be important? How many more luxury retailers will follow suit

@bloombergbusiness

What is happening?  Fort Worth has activated 3 Bitmain Antminer S9s bitcoin mining machines in its Information Technology Solutions Department’s data center

Why is this important? As far as I have seen Ft Worth is the 1st city to mine crypto. The machines were donated by Texas Blockchain Council

How will this be important? This is a 6 month pilot project. It is estimated that each machine will use the same energy as a household vacuum cleaner & generate ample bitcoin to cover the cost of the power. Lets see if any other cities jump on board.

Put Fifty | A City Government Begins Mining for Bitcoin

What is happening? The mayor of Reno, NV is considering selling an NFT of a city sculpture

Why is this important? Revenue. NFTs were a $25 Billion business last year.

How will this be important? How many other items can cities or local governments convert to NFTs and sell to gain revenue. NFTs the new local government merch.

Route Fifty | Bored Apes, Texting Robots and the Latest Digital Taxation Conundrum

What is happening? India by rule is shortening the data breach notification period to 6 hours. The rules were implemented by the country’s computer emergency response team, CERT-In & apply to  including service providers, data centers, government organizations, and corporations.

Why is this important? By reference, the EU’s GDRP has a 72 hour notification rule

How will this be important? The rules go so far as to list the types of incidents that have to be reported. There are 20 types that have to be reported and start on page 5.

The Daily Swig | India to introduce six-hour data breach notification rule

What is happening? Slow and steady wins the race. The model insurance data security legislation by the National Association of Insurance Commissioner has gained 2 more states. Kentucky & Maryland.

Why is this important? Kentucky HB 474 (2022 |KY) & Maryland SB 207 (2022 | MD) both put requirements on carriers to do things like risk assessments, reporting and compliance.

How will this be important? Both gave carriers a 1 year grace period for a written information security program compliance and a 2 year grace compliance period for  service provider oversight requirements.

National Law Review | Two States Enact Insurance Data Security Laws

What is happening? California is considering  Senate Bill 1275 that would make cryptocurrency tender for purchasing state and local government services- like taxes or vehicle registration.

Why is this important? California State Controller Betty Yee has indicated concerns about consistent financial reporting with cryptocurrency. An economist at Loyola Marymount University said, “I think it is too early, too premature, it is too risky, too volatile.”

How will this be important? California will be a bell weather state for state cryptocurrency legislation.

Sacramento Bee | Could you pay your taxes in Bitcoin? California lawmakers weigh cryptocurrency bills

What is happening? at the FTX and SALT’s Crypto Bahamas event. Crypto miners talked about energy efficiency and regulatory certainty.

Why is this important? The efficiency is focused on their mining by improving hashrate efficiency (the amount of power that a machine requires to produce a bitcoin) & data mining centers becoming more specialized and optimized for lower energy consumption by capturing heat used in mining and converting it to energy.

How will this be important? Bitcoin Mining Council says mining computers are 58% more efficient than they were 8 years ago. Miners also want to work with local grids to serve as a grid stabilizer.

Tech Crunch | Bitcoin miners say energy efficiency and regulatory certainty are crucial for the industry’s success

What is happening? As part of North Carolin’a budget bill it prohibited state and local governments from communicating with ransomware hostage takers.

Why is this important? If anyone watched Texas House Committee on State Affairs this week, you would have heard testimony from Texas DIR that it can cost less to rebuild than to pay a ransomware attacker. It’s economics…

How will this be important? Pennsylvania did a similar thing with passage of SB 726 (2022 | PA) that prohibits the use of public money to pay ransoms. S6806A in New York this year would also prohibit payment to ransomware attackers.

Route Fifty | North Carolina First State to Prohibit Agencies From Paying Ransoms

What is happening? MIT Tech did a dive into the March 2020 crypto hack that resulted the pilfering of  $620 million in the cryptocurrency Ethereum

Why is this important?”In 2021, criminal hackers stole approximately $3.2 billion in cryptocurrency”

How will this be important? The crypto world is moving too fast for seemingly both cybersecurity and regulatory oversight.

MIT Tech Review | A $620 million hack? Just another day in crypto

What is happening? For the last 10 years the FIDO Alliance has been pushing to make smart phone technology a replacement for old passwords.

Why is this important? The idea is your smart phone would authenticate you so passwords would be unnecessary.

How will this be important? FIDO Alliance is 250 companies that are largely in the healthcare and technology world.

Dive Wire | Behind the push to finally eliminate passwords

What is happening? Cowboy Crypto. Cowboys are the first NFL team to announce a crypto currency partnership with blockchain.com

Why is this important? NBA signed a a deal in October with Coinbase. Crypto.com bought naming rights for an arena shared by the Lakers, Clippers, Sparks and Kings. Crypto.com was named a unique digital currency trading platform during the FIFA World Cup

How will this be important? Let’s watch the partnership unfurl.

Bleacher Report | Cowboys Announce Blockchain.com Partnership; 1st Cryptocurrency Deal by NFL Team

Bitcoinist | NFL’s First Crypto Partnership: Dallas Cowboys Partners With Blockchain.com

What is happening? Mississippi is considering HB 1029 (2022 | MS) that creates the Broadband Expansion and Accessibility of Mississippi office to  create a streamlined, central process for how broadband dollars are doled out for projects.

Why is this important? Mississippi has an exception for open meetings for state offices, but not for state commissions or boards.

How will this be important? I might suggest the takeaway here isn’t the statewide broadband planning in a standalone group, but more importantly may be the dispensing of 100s of millions by a ste office that isn’t subject to open records.

Governing | Mississippi Creates Statewide Broadband Development Office

What is happening? In 2018, West Virginia ran a pilot program testing blockchain to secure voting. Alaska in 2021 proposed legislation, SB 39 (2021 | AK) to build its voting system around blockchain which is considered more tamper proof.

Why is this important? The security of blockchain could also be useful for state issued IDs and for DAOs, Decentralized autonomous organizations

How will this be important? State government isn’t known for expedited adoption of new technology.

West Virginia Secretary of State | Under the Hood Blockchain Voting Pilot

What is happening? Miami Coin has netted the city $5.25 million in revenue but investors not so much as the crypto’s value has fallen.

Why is this important? The city is using the revenue to fund subsidies for low-income residents. 

How will this be important? NYCCoin isn’t faring better, having fallen from close to half a cent at the beginning of February to about a quarter of a cent

Wall Street Journal | MiamiCoin Gets Off to a Rocky Start

What is happening? Crypto Miner, Marathon Holdings is  is cutting the cord with Hardin Generating Station in Montana , because it must be carbon neutral by 2023.

Why is this important? “The Congressional Research Service put the amount of electricity going to crypto mining at 7,670 megawatts in 2019, the equivalent of more than five Colstrip Power Plants.”

How will this be important? This crypto was featured in national publications for being a way to salvage coal generating plants.

KPVI 6 | Crypto miner plans to exit Hardin coal-fired power plant

What is happening? Cyber security insurance rates are rising. Cities re reporting that they are paying twice the cost for half the coverage.

Why is this important? According to a survey 69% of cities have more expensive policies than last year. For the pooled Maryland Local Government Insurance Trust, premiums rose 300%

How will this be important? The Russian invasion of the Ukraine will also test policy clauses that  “war exclusion” and “hostile act exclusion” language in the policies

Route Fifty | Governments Confront Rising Cyber Insurance Rates

What is happening? Houston, Austin, Irving, Rowlett and Beaumont have asked the AG to allow them to seek franchise fees from internet streamers. rlington, Grand Prairie, Allen, Amarillo, Sugar Land, Mesquite, Dallas, Plano, Waco, Abilene, Carrollton, Frisco and Garland are all currently pursuing streaming tax via the existing franchise fees.

Why is this important? Cable franchise fees have been decreasing with streaming. Gotta get the revenue.

How will this be important? Are we defining these internet streamers as utilities….

SE Texas Record | Houston, Austin and three other Texas cities seek AG approval to sue streamers over franchise fees

What is happening? South Dakota Governor is directing $1.25 million for state universities to collaborate to form an agriculture cybersecurity partnership.

Why is this important? The predominant agriculture cybersecurity threat is far equipment which are connected to the internet, and become part of the internet of things.

How will this be important? Not only does farm equipment give access to fertilizer, which comprised the OKC bombing, but also could give access to changing the chemical structure and wipe out a crop.

Government Technology | South Dakota Universities Partner on Agriculture Cybersecurity

What is happening? A survey by HelpSystems asked how cybersecurity changed after COVID.

Why is this important? 53% of respondents said cyber threats were worse after COVID

How will this be important? These concerns are ratcheting up again with Russia’s invasion into the Ukraine.

BankInfoSecurity | How Has COVID-19 Changed CISO Approach to Data Security?

What is happening? Mobile Alabama adopted ShotSpotter, an auditory gunshot detection technology in an effort to reduce gun violence.

Why is this important? Mobile is using American Rescue Plan Act funds to pay for the contract that uses audio detection technology to pinpoint where gunshots occur.

How will this be important? City Council added protections limiting long term use and prohibiting data collection. Technology can only be used where people have no reasonable expectation of privacy.

Governing | Mobile’s Gun Violence Reduction Plan Sparks Surveillance Concerns

What is happening? Massachusetts Facial Recognition Commission released its recommendations this week and placed the responsibility to use facial recognition software with the State Police.

Why is this important? Other limits recommended include no algorithms concerning detectable emotions & requiring probable cause that the person committed a felony.

How will this be important? Massachusetts got tot his point by creating a commission in a 2020 police reform bill that created the commission.

Governing | Massachusetts Commission Sets Facial Recognition Guidelines

What is happening? 8 months after the state Legislature approved a ban on facial recognition software by law enforcement agencies, the Virginia Legislature approved use of facial recognition software by law enforcement. SB 741 (2022 | VA )

Why is this important? The bill authorizes certain uses like identifying witnesses, investigating sexual trafficking crimes, unidentified bodies in morgues, and  identify an individual when they have reasonable suspicion that the person committed a crime

How will this be important? To correct for misidentifications any facial recognition software used must “National Institute of Standards and Technology and have an accuracy rating of at least 98% across all demographic groups”

AP | Virginia lawmakers OK lifting ban on facial technology use

What is happening? Connecticut is considering a bill, Senate Bill 208 (2022 | CT) that would require parental consent for children under the age of 16 to engage in social media. The bill is expected to be amended to allow parents to remove children’s accounts.

Why is this important? children’s welfare organizations support that bill because of the mental health issues that can arise because of social media such as depression, body dysmorphia and suicidal thoughts.

How will this be important? Look for this to be replicated.

Connecticut Post | Connecticut Bill Would Require Parental Social Media Consent

What is happening? Google is pledging $2.5 billion to diversify suppliers. Google has had a plan to diversify suppliers for 10 years.

Why is this important? Some are attributing Googles renewed interest in its diversification of suppliers to a renewed interest in diversity, equality, and inclusion after the heightened awareness of Black Lives Matter in 2020.

How will this be important? Google is including mentorship and training so that it’s suppliers also contract with a diverse group of suppliers. I guess we could call this trickle down supply chain diversification.

CIO Dive | Google pledges to spend $2.5B with diverse suppliers in 2022

What is happening? Russian citizens have been moving to  defeat Russia’s internet censorship by utilizing VPNs and encrypted messaging apps.

Why is this important? Most of these end runs around government oversight are lessons learned from Chinese citizens who seek uncensored internet communication

How will this be important? Some say the more people who use these types of technology the more censorship resistant technology is accepted.

CNN | Russian internet users are learning how to beat Putin’s internet crackdown

What is happening? A report released this week from Accenture says there is an uptick in politically motivated hackers, with more hackers motivated to hack Russia.

Why is this important? Cannot make this stuff up: ” the notorious Conti ransomware gang pledged allegiance to Moscow. In response, a Ukrainian security researcher decided to leak a trove of internal chats detailing Conti’s operations.”

How will this be important? The day of the Russia attacks on Ukraine Anonymous, the hacker group, announced it was targeting Russia.

Politico Weekly Cybersecurity

What is happening? Wyoming has amended its playing field for crypto currency by providing for more decentralized organizations, which use digital tokens to track membership and more. The jargon is decentralized autonomous organizations, or DAO. SF 68 (2022 | WY)

Why is this important? DAO status gave American CryptoFed the requisite structure to pursue federal recognition for its virtual currency

How will this be important? ” Wyoming is now recognized as one of the top blockchain destinations in the world,” according to the first DAO’s CEO

Governing | Wyoming Law Sets Federal Recognition Foundation for Virtual Currencies

What is happening? Wyoming Legislature is considering Senate File 106 (2022 | WY) that would allow the State Comptroller to create a state stable coin (a form of cryptocurrency).

Why is this important? Wyoming would become the first state to issue a stable coin.

How will this be important? There are 49 other states that could head in this direction.

Investing.com | Wyoming lawmakers introduce legislation for state-issued stablecoin

What is happening? As we’re not near federal rules on crypto currency, let’s see what the states are up to.

Why is this important? An overview of state crypto rules:

• Arizona is considering legislation to make bitcoin legal tender.
• California is considering legislation to allow people to pay for state services with cryptocurrency
• Colorado Governor announced on twitter that the state will accept tax payments in cryptocurrency.
  • Colorado will become the 1st state to do so
• Ohio had a 2018 pilot program for accepting cryptocurrency for some taxes but the program was short lived
• Wyoming has been laying the ground work for a state cryptocurrency

How will this be important? There are 50 states and no federal rules. There is a lot more legislative and regulatory action coming your way on crypto.

WFAE | With federal rules unclear, some states carve their own path on cryptocurrencies

What is happening? This week President Biden issued an Executive Order concerning cryptocurrency to  centralize regulatory enforcement, protect consumers, and mitigate the fiscal and human costs of crypto misuse.

Why is this important? The Federal Reserve back a new Central Bank Digital Currency (CBDC) thereby laying the groundwork for a US backed digital currency that is indexed to the value of real-world cash, rather than subject to wild price fluctuations.

How will this be important? The EU is steps ahead and near passing legislation on cyrptoassets.

Computer World | Biden issues executive order on crypto regulation, stablecoin proposal

What is happening? The Texas House of Representatives Committee on State Affairs will be deep diving into the status and adequacy of cybersecurity preparedness among state agencies and contractors.

Why is this important? The cybersecurity of those who receive procurement awards is increasingly important.

How will this be important? A quick search of InfoHive will show you for years states have passed laws and rules to improve cybersecurity standards for state contractors.

What is happening? Earlier this week Anonymous announced on twitter it will be focusing on Russia and Putin to aid the Ukraine

How is this important? Hackers on both sides for this conflict that has a strong cyber element.

Why will this be important? Case of first impression for a global “cyber warfare”

CNBC | Global hacking group Anonymous launches ‘cyber war’ against Russia

What is happening? Politico Cybersecurity says  Conti ransomware gang and the LockBit 2.0 ransomware group have vowed in recent days to attack the critical infrastructure of any nation that retaliates against Russia

Why is this important? Remember the hackers who seized control of the Colonial Pipeline.

How will this be important? Besides wondering whether cyber insurance policies hold to cover losses, this is the environment for a hacker free for all.

Politico | U.S. cyber officials brace for attacks in wake of Ukraine invasion

What is happening? In Texas, “Gov. Greg Abbott sent a letter to the Texas Department of Information Resources and the Department of Public Safety directing both agencies to use their resources to safeguard critical infrastructure and to help local governments and school districts with their needs.”

“Colorado Gov. Jared Polis issued an executive order directing the Office of Information Technology (OIT) to focus on protecting the state’s critical infrastructure from Russian cyberattacks or misinformation efforts.”

New York launched a Joint Security Operations Center to bring together federal, state, county, local governments and critical infrastructure partners to improve coordination and bolster cybersecurity efforts. 

North Carolina Gov. Roy Cooper tweeted that he had instructed the Joint Cybersecurity Task Force to increase outreach and assistance. 

New Jersey Cybersecurity & Communications Integration Cell, a component organization in the state’s Office of Homeland Security and Preparedness urged agencies to be on the lookout for information operations, cyber espionage and various cyberattacks and “ensure all preventive, detective, and responsive cybersecurity controls and plans are fully implemented and updated.”

Why is this important? There are continued denial of service and destructive malware attacks affecting Ukraine and other countries

How will this be important? Sharing information on attacks is a form of mitigating more attacks

Route Fifty | Governors Tighten IT Cybersecurity Amid Ukraine Attacks

What is happening? 45 organizations including the Electronic Privacy Information Center, the Algorithmic Justice League, Fight for the Future, the American Civil Liberties Union, and the Project on Government Oversight are calling on state and federal government to cease using 3rd party digital identification systems, ID.me.

Why is this important? There is no comprehensive law regulating the collection, use, disclosure and retention of biometric data.

How will this be important? Not only is there no comprehensive law, but also there is a 2019 study by the National Institute of Standards and Technology that found that the majority of facial recognition systems have demographic bias.

Route Fifty | Agencies Shouldn’t Use Facial Recognition for ID Verification, Group Says

What is happening? The IRS has stopped verifying identities with facial recognition software because it as using a 3rd party product and the government has an identity verification program. (e.g. don’t give 3rd parties access)

Why is this important? At the heart of this is the concept that  “digital identity management a “core government service.”

How will this be important? States, you’re up!

FCW | IRS backs away from facial recognition technology

What is happening? The City of Baltimore is expunging data collected by a now defunct low level  surveillance plane program.

Why is this important? Expunging this data is complicated. During the time the planes flew, 1,532 crimes were committed, only 158 crimes that relied on evidence from the planes, and 38 crimes were cleared with the evidence. Some prosecutions may rely on it which means the data has to be maintained until all appeals are exhausted. The legal system is not known for being fast.

How will this be important? Other cities have stopped programs that used a variety of techniques like facial recognition. How are cities expunging that data? Is the data every really gone? Not if Hollywood crime movies are to be believed.

Baltimore Sun via Governing | Baltimore Police to Expunge Surveillance Plane Records

What is happening? The FBI has formed a new team dedicated to cryptocurrency

Why is this important? The FBI team will coordinate with the National Cryptocurrency Enforcement Team in relation to cyber crimes.

How will this be important? The policy objective is to allow digital currencies to grow will limiting the illicit use of cryptocurrency.

The Hill | FBI to form new cryptocurrency unit

What is happening? Coinbase’s app downloads increased by 309% week-over-week after its Super Bowl ad

Why is this important? Crypto regulation is in its infancy

How will this be important? Crypto usage and purchase will drive policy.

TechCrunch | Super Bowl ads boosted crypto app downloads by 279%, led by Coinbase

What is happening? Congressman Josh Gottheimer proposes legislation to “designate certain digital currencies as “qualified” stablecoins if they can be redeemed on a one-for-one basis for U.S. dollars.”

Why is this important? Stablecions would be backed by banks or designated reserve assets in a non-bank.

How will this be important? Concerns include : “that a spike in redemption requests, or a stablecoin “run,” could result in bankruptcy at the issuer and start a domino of insolvency”

CNBC | Democratic lawmaker unveils bill that would define boundaries for stablecoin market

What is happening? The BlockCain Council of Texas estimates 27 bitcoin mining companies in Texas. One of those companies, Geosyn Mining expects to operate 531 mining machines.

Why is this important? Texas as Bitcoin Fund in operation and  two new natural gas-powered bitcoin mining facilities in Texas

How will this be important? Over the next year, Poolin CEO Kevin Pan, plans to quadruple its current 2GW mining facility in Texas.

TechCrunch | How Texas is becoming a bitcoin mining hub

What’s happening? PA had a COVID tracing contractor data breach that resulted in SB 696 (2022 | PA) that would require governmental entities, including school districts, to disclose known data breaches within 7 days to those impacted

Why is this important? The bill was amended to include 3rd party vendors.

How will this be important? The breach disclosure time frame is 3 days from discovery for notification to the state attorney general.

AP & WKPN | Pa. Senate advances data breach timely notice bill

What’s happening? NH Governor Sununu has created a Cryptocurrency Commission.

Why is this important? The Commission will make recommendations to the Governor and the Legislature on the state of regulation for cryptocurrency in NH.

How will this be important? TX currently has a study commission authorized but he Legislature. Hawaii’s default legislative position is a study of cryptocurrency. Everyone is looking for what Gov. Sununu identified : “must work to bring legal and regulatory certainty” 

Concord Monitor | Sununu launches cryptocurrency commission

What is happening? The Legislature in Hawaii must pass reauthorization legislation to permit cryptocurrency trading to continue in Hawaii

Why is this important? In 2016, Hawaii’s Department of Commerce and Consumer Affairs ruled that cryptocurrencies were regulated as money transmitters, which halted trading of cryptocurrencies

How will this be important? SB 3025 (2022 | HI) would license cryptocurrency in Hawaii & SB 2696 (2022 | HI) would allow cryptocurrencies to be accepted in financial transactions in Hawaii.

KHON | Cryptocurrency trading to end in Hawaii if legislature doesn’t act

What’s happening? A new FDA proposal would utilize blockchain to establish farm-to-fork food traceability,

Why is this important? An easier way to trace food sources for food safety. Walmart and Nestle use blockchain for their food traceability and would not require companies to maintain digital records

How will this be important? As blockchain methods are used for traceability in other portions of the supply chain.

WSJ | FDA Official Says New Rule Could Boost Blockchain-Based Food Tracking

What is happening? A smattering of luxury car groups are accepting crypto currency to purchase their vehicles. Included are Post Oak Dealership in Houston, TX; Marino Performance Motors in West Palm Beach;

Why is this important? Dealers say they felt like they needed to accept crypto because their clients want to pay with crypto.

How will this be important? Crypto first say “In actuality there is more transparency and faster transaction finality than the legacy banking options available.”

International Policy Digest | 10 Car Companies that Accept Bitcoin as Payment

Kilgore News Herald | Luxury car dealers are seeing a rise in purchases using crypto currency

What is happening? Improving data collection equity and leveraging that data allows states and cities to budget for equity and achieve more equitable outcomes

Why is this important? 70 counties have officially declared racism a public health threat.

How will this be important? ESG rules could be our guide to monitor equity on the local level.  

Route Fifty | The Next Frontier in Equity is All About Data

What is happening? NYC new mayor used an executive order to consolidate all the city’s technology departments to promote the use of civic technology .

Why is this important? For NYC that means the following agencies will be consolidated:

• New York City Department of Information Technology and Telecommunications
• Mayor’s Office of Data Analytics
• Mayor’s Office of the Chief Technology Officer
• Mayor’s Office of Information Privacy
• New York City Cyber Command
• Algorithms Management and Policy Office
• NYC 311

How will this be important? Information sharing issues emerged during the pandemic, and the goal of the consolidation will be increase accountability.

Government Technology | Eric Adams Consolidates New York City Tech Agencies

What’s happening? In 2021 21 states considered cryptocurrency legislation. 14 passed measured laws like unclaimed property or studies.

Why is this important? When financial laws regulating money transmissions, like wire transfers and money orders, were created crypto currency did not exist.

How will this be important? Looking for a way to get cryptocurrency into your laws…your entry way cam be an update to financial regulations like wire transfers.

Route Fifty | As States and Localities Embrace Cryptocurrency, Problems Grow

What’s happening? NYC and Austin, TX are the next two cities to follow Miami into the use and acceptance of cryptocurrency.

Why is this important? Academics say the branded value of “MiamiCoin” or whatever NYC or Austin ill choose for a name adds to the value for cities.

How will this be important? Miami saw an increase in cryptocurrency businesses after adopting MiamiCoin, and the talkers say NYC and Austin should anticipate the economic development advantages that Miami has from its cryptocurrency.

Route Fifty | As States and Localities Embrace Cryptocurrency, Problems Grow

What’s happening? Maine is considering a constitutional amendment that would clarify that privacy, including digital privacy is a constitutional right.

Why is this important? By defining data as a privacy right, it triggers warrant requirements.

How will this be important? NCSL says 13 states have adopted a privacy right in their constitutions. These states include New Hampshire, Missouri and Michigan.

Portland Press Herald via Governing | Maine Data Privacy Concerns Push for Constitutional Amendment

What’s happening? In the ongoing saga in Missouri over a state cyber vulnerability that was brought to the attention of state leaders by a reporter. The Governor believes that the Cole County prosecuting attorney will bring charges against the reporter.

Why is this important? White hackers or individuals who caused no harm, did not profit and revealed vulnerabilities are not usually prosecuted.

How will this be important? Whether other jurisdictions will begin prosecuting people without the intent to cause harm

St Louis Today | Parson says he believes prosecutor will bring charges in Post-Dispatch case

What is happening? The U.S. Cybersecurity and Infrastructure Security Agency doesn’t have the requisite data to protect critical infrastructure when it has no reported data on breaches.

Why is this important? By looking at reported breach data security experts can more easily identify software flaws that allow for breaches.

How will this be important? Breach data is helpful to security experts.

Roll Call | Absence of reporting law limits agency knowledge of cyberattacks

What is happening? In the last 3 years pension funds in CA, NJ, Houston Firefighters, and Fairfax County VA all invested in cryptocurrencies in different forms.

Why is this important? 33% of institutional investors are in crypto. Barriers are coming down for investment including crypto as being considered illiquid.

How will this be important? At least 17 states have started considering regulation of cryptocurrency. The SEC is signaling regulation and the Infrastructure bill contains cryptocurrency reporting requirements.

Route Fifty | Why More Public Pension Funds Are Investing in Cryptocurrencies

What’s happening? In 2021, Congress introduced 35 cryptocurrency measures

Why is this important? Similar legislation has been filed in states. The legislation falls into 3 categories:

•  cryptocurrency regulation
• applications of blockchain technology (blockchain is the backbone technology for crypto)
• central bank digital currency

How will this be important? This is all new territory with no clear tragectory

Forbes | In 2021, Congress Has Introduced 35 Bills Focused On U.S. Crypto Policy

What is happening? D.C.’s attorney general proposes to shield district residents from discriminatory and biased computer algorithm. This would make it illegal for businesses to use discriminatory algorithms in areas such as education, employment, housing, and with providing services like credit, health care, and insurance.

Why is this important? The policy goal of reducing sexism, racism and boas for ethnic background is gaining steam. Penalties include up to $10,000 for each violation of the guidelines.

How will this be important? This mirrors what’s happening in business right now. “Data & Trust Alliance, a group that includes major corporations, said more than a dozen companies would adopt safeguards to prevent bias with algorithms used for workforce decisions, around issues like recruiting and pay. That group includes General Motors, IBM, Mastercard, Walmart and Meta (the rebrand of Facebook), among other companies.”

Route Fifty | A Proposal to Block Companies From Using Biased Algorithms

What’s happening? Some legal experts say gaps in the law allow warrantless access to your car’s information center. A warrant may be required for your phone but your phone’s information is also stored indoor vehicles information system and that system may not need a warrant.

Why is this important? The internet of things creates gaps in data privacy and rules, regulation and laws are slow to keep up with innovation

How will this be important? The first big lawsuit in your state about information held on the internet of things will lead to changes, be ready. some State Supreme Courts have taken action, like in Georgia where the GA Supreme Court required a warrant for vehicle data information.

Detroit News via Governing | Police Don’t Need a Warrant to Pull Personal Data from Cars

What’s happening? Miamicoin isn’t the only cryptocurrency movement in Florida. Crypto is accepted at real estate and yacht brokers to hair salons and charter jet companies in Broward and Palm Beach counties.

Why is this important? Local charities are starting to show interest in crypto, including crypto donations.

How will this be important? Some say Miami’s Miamicoin is setting a model for other cities.

 South Florida Sun-Sentinel | Miami Isn’t the Only Florida Locale Experiencing Crypto Growth

What is happening? Texas candidates for public office can receive contributions in crypto currency.

Why is this important? The Texas Ethic Commission proposed rules will no longer require campaigns to immediately convert the crypto. The proposed rules as filed can be found here.

How will this be important? Rules are anticipated to be adopted in February

What’s happening? Rhode Island is launching a vaccine status app that will make it easier for Rhode Islanders to travel as the CDC issued paper vaccine record is inefficient.

Why is this important? Use of the app by an individual or a business is 100% voluntary.

How will this be important? CA, CO, RI and NJ all use similar apps

Providence Journal via Governing | Rhode Island Announces COVID Vaccination Status Mobile App

What’s happening? The Local Government Insurance Trust in Maryland, where local governments purchase insurance including cyber policies, saw a 300% in cyber insurance premiums. Premiums are expected to rise for 2022 also. The Missouri Insurance Trust saw policies drop from $1 million in coverage to $250,000 and premiums increase from $5,000 to $25,000.

Why is this important? In 2021, 90% of local governments report having cyber insurance. That’s up from 78% in 2020

How will this be important? Insurance experts say local governments need to improve local network security to see the market stabilize.

Route Fifty | Cyber Insurance for Local Governments Costs More, Covers Less

What’s happening? States are passing bills that require disclosure of ransomware attacks.

Why is this important? To paraphrase  Indiana state Rep. Mike Karickhoff, who authored his state’s legislation, if your house gets broken into, you will tell your neighbors.

How will this be important? So far states are following the IN approach, requiring only disclosure by governmental entities if they get hit by ransomware. ND followed suit and WV did so too but limited it to qualified cyberattacks.

Stateline | How Common Are Ransomware Attacks? Lawmakers Want to Find Out.

What’s happening? Smart Bandages that could help improve the diagnosis and treatment of wounds by transmitting data via bluetooth, floor sensors that can transmit information about intruders or health information that can be determined by gait; and car sensors that can relay dings and damage to rental cat companies.

Why is this important? Along with transmission of dat comes data privacy issues, and whether the method and mode of this data transmission are protected under cyber security laws will depend on the cybersecurity laws.

How will this be important? Laws and regulations will have to recalibrated for new devices and privacy issues.

Wall Street Journal | Smart Bandages, Vehicle-Damage Trackers and More Data-Collecting Devices of the Future

What’s happening? States are taking enforcement action against bad acting crypto currencies.

Why is this important? Let’s look at the variety of ways state enforcement occurs:

• Attorneys general in MA & NY have issued fines and cease and desist orders
•  Texas State Securities Board issued a cease-and-desist order for fraudulently offering cryptocurrency mining investments
• 30+ states considered cryptocurrency legislation in 2021
• AR and KY enacted laws defining digital currency under the states’ money services or transmission statutes
• IN and ND added coverage for virtual currencies under unclaimed property acts
• NE is the 2nd state to create a special bank-like institution to govern virtual currencies and other digital assets
• WY created a bank like structure for crypto in 2019
• TX passed a law that the purchaser of virtual currency gets the rights to that currency from the previous owner & that brings cryptocurrency under the same state business code that applies to other ordinary transactions

How will this be important? More legislation is forthcoming, bills will be replicated.

Pew Charitable Trusts via Governing | States Crack Down on Growing Cryptocurrency Fraud

What is happening? Texas Legislature passed HB 1576 (2021 | TX) that requires that joint legislative committees develop a master plan for blockchain expansion.

Why is this important? The bill also opens the door for investment into blockchain. This includes economic development opportunities for the blockchain industry.

How will this be important? This master plan shapes the future of blockchain in Texas + we’ll see the next round of legislative action emerge.

What is happening? Texas Legislature passed SB 275 (2021 | TX) that requires The Texas Department of Information Resources to report on the Texas Volunteer Incident Response Team.

Why is this important? The goal is to offer rapid response to a cyber event at the state.

How will this be important? The report will make recommendations to make communication more efficient fro cyber response coordination.

What is happening? The Student Data Privacy Consortium (SDPC), a Special Interest Group of the non-profit Access 4 Learning (A4L) Community, is proud to announce the release of The National Research Data Privacy Agreement, a great resource to support schools in their student data privacy stewardship roles

Why is this important? The National Research Data Privacy Agreement included input from all stakeholders including schools, districts, state and government organizations, marketplace providers, researchers, universities, and their legal representatives

How will this be important? “The draft NRDPA can be found on the SDPC website (https://privacy.A4L.org/national-research-dpa/) with permissible usage rights for SDPC Members.”

EIN Press Wire | The Student Data Privacy Consortium (SDPC) announces the release of the National Research Data Privacy Agreement (NRDPA)

What is happening? Miami has created a partnership that earns it a portion of the proceeds from MiamiCoin. So far Miami has earned $21 million.

Why is this important? MiamiCoin is the city’s version of CityCoins, digital tokens which people can hold and trade as a stake in their city’s government. The idealized view is that MiamiCoin will remove the need to pay local taxes.

How will this be important? Miami is the 1st city in the country to adopt this program, and by all accounts it has so far been beneficial.

The Hill | Miami residents to receive city cryptocurrency proceeds, mayor says

What’s happening? DTRAVEL is a decentralized home sharing platform that is governed by its community via the Dtravel Decentralized Autonomous Organization (DAO), which gives community members a say with support from  world’s leading crypto-friendly online travel agency

Why is this important? By relaying on blockchain, the participants can own part of the platform and make decisions that directly affect them

How will this be important? DTRAVEK says its method reduces fees, gives new revenue streams, and offers a community voice

Yahoo | Dtravel, Decentralized Home-Sharing Platform, Now Live for Bookings

What’s happening? QR codes in and of themselves are not privacy hackers, but the websites the QR codes lead you to, will track you can follow your data. Privacy experts recommend non-tracking browsers like Safari or Firefox.

Why is this important? Legislating consumer privacy online is very of the moment. Add QR codes to your legislative definitions.

How will this be important? QR codes will move from restaurant tables to your state house soon

@washingtonpost

What’s happening? CT joins UT and OH with offering liability protections for businesses who comply with reasonable data security measures.

Why is this important? These laws are viewed as a preview to liability protections coming to other states.

How will this be important? Need to write this legislation? Well, it’s been written.

Fox Rothschild LLP | New Connecticut Law Incentivizes Adoption of Cybersecurity Standards

What’s happening? 25% of local elected officials are opting out of cyber training.

Why is this important? The elected official exemption often also applies to their staff & the number of cyber attacks on local governments is increasing.

How will this be important? 58% of IT executives said their organization’s cybersecurity budgets are not adequate

Route Fifty | Most Local Governments Provide Cyber Awareness Training. Why Do 25% Let Elected Leaders Opt Out?

What’s happening? The Department of State is establishing a Bureau of Cyberspace and Digital Policy. Supporters are bipartisan including Mike McCaul (R-Texas), Sen. Angus King (I-Maine), and Rep. Jim Langevin (D-R.I.) 

Why is this important? The DOJ gave the Senate the power to confirm the head of the his Bureau.

How will this be important? The bureau will focus on international cyberspace security, international digital policy, and digital freedom and will integrate the core security, economic, and value components of the DOJ cyber agenda.

The Hill | Lawmakers praise upcoming establishment of cyber bureau at State

What’s happening? The Department of Justice will use the False Claims Act to impose penalties upon recipients of government contracts and grants that fail to follow required cybersecurity standards.

Why is this important? To be penalized a contractor had to knowingly fail to comply.

How will this be important? They want to take a stand this will be hefty fines and heavy protection of whistleblowers.

Pillsbury | DOJ Announces Civil Cyber-Fraud Initiative to Combat Cybersecurity Threats

What’s happening? 2020 saw $3.3 billion in losses to cybercrime. That’s double the 2010 numbers. 4.7 million reports of cybercrime in 2020, that’s a 300% increase from 2010. Any drops in cybercrime during COVID were modest.

Why is this important? Lets look at where cybercrime hits the most and the least:

The MOST hit by cybercrime:

• Alaska—$500
• New Mexico—$420
• California—$407
• Washington—$400
• Nevada—$400
• Delaware—$400
• Washington, D.C.—$399
• Florida—$384
• North Dakota—$381
• Arizona—$374

The lease hit by cybercrime:

• West Virginia—$205
• Kentucky—$210
• Maine—$211
• Mississippi—$213
• Rhode Island—$229
• Ohio—$230
• New Hampshire—$231
• Missouri—$236
• Indiana—$240
• Wisconsin—$249

How will this be important? With more people working from home, and the cybercrimes related to federal and state COVID programs, the cybercrime numbers are expected to keep increasing.

Route Fifty | States With the Most and Least Cybercrime

What’s happening? Politicians are touting it, and cryptocurrency miners see the lone star state and its low-cost energy as an appealing location.

Why is this important? A research associate at the Webber Energy Group at the University of Texas at Austin says that “Because Texas has some of the lowest cost electricity in the world, it looks pretty attractive to bitcoin miners or cryptocurrency miners.”

How will this be important? Opponents. Like these:

• An associate professor of environmental engineering at Rice University says ” “But just adding brand new demand to the grid isn’t helpful, or doesn’t fix the shortfalls.”
• founder of the website Digiconomist which analyzes the impacts of cryptocurrencies says ” “This is a massive risk when you look at the Texas grid, which is already quite weak,”

Houston Chronicle via Governing | Can Texas’ Power Grid Withstand Cryptocurrency Mining?

What’s happening? State Information Officers have been primarily focused on cybersecurity. Thanks to the pandemic, states #2 priority is improving digital services.

Why is this important? Streaming state services for functional and efficient digital services is good for state operations and good for state citizens. Connecticut says it thinks  it has saved aspiring entrepreneurs 38,000 hours by streamlining digital services.

How will this be important? States are beginning to understand that they should be able to deliver services, like food in disasters, as quickly and efficiently as you can get a coffee at Starbucks.

Government Technology | States to Maintain Digital Service Delivery Post-Pandemic

What’s happening? White hat hackers, like academics or the press, discovered a flaw in the Missouri Department of Education’s website that exposed the social security numbers of teachers. They notified the state to not draw attention. In turn, the Governor attacked the white hat hackers who were trying to do a good.

Why is this important? DO NOT SHOOT THE MESSENGERS

How will this be important? Make sure your state laws on hacking are up to do date for the good guys to say hey there’s a flaw, let’s fix it before oil becomes a problem.

Washington Post | A fight in Missouri shows the damage of overbroad hacking laws

What’s happening? Gov. Greg Abbott wants Texas to be the center of the semi conductor world. (sssh! Don’t tell Austin it isn’t the center of the world).

Why is this important? The Gov. is assembling a task force in hopes of bringing the National Semiconductor Technology Center to the state.

How will this be important? The current Congress created the National Semiconductor Technology Center. This could be interesting foresight into the relationship between the Democratic Congress and Texas.

KTRH | Abbott Wants Texas To Be National Semiconductor Technology Center Home

What’s happening? Rackspace conducted a survey of 1,420 government IT decision-makers and learned:

• 52% expressed significant concerns over recruiting and retaining cybersecurity talent
• 84% said they lack the expertise to meet current cybersecurity and compliance challenge
• 73% time constraint problems
• 59% lack of training challenges

Why is this important? 58% were concerned about attacks of their networking systems followed by platforms 54% and apps at 53%.

How will this be important? 49% of respondents said adopting a zero-trust security framework would address cybersecurity challenges

Route Fifty | Half of Public Sector IT Pros Not ‘Fully Confident’ in Cyberattack Response

What is happening? Massachusetts Legislature is consider S48 (2021 | MA) , An Act to ensure a free and open internet in the commonwealth, to keep providers from  blocking, throttling or engaging in the paid prioritization of providing Internet service.

Why is this important? Net neutrality is moving to a state to state issue

How will this be important? MA isn’t alone, WA and CA have also entered into the net neutrality fray to keep providers from allowing for paid prioritization of internet services.

Government Technology | Massachusetts Proposes Regulating Broadband Industry

What’s happening? Halloween candy manufacturer was hit by a ransomware attack. We’re talking core Halloween candy on the US: Everlasting Gobstoppers, Lemonheads, Now and Later, Nerds, SweeTarts, Laffy Taffy, Red Hots, Pixy Stix, Atomic Fireballs, Boston Baked Beans.

Why is this important? Ransomware attacks are up and here we have an attack that could impact Halloween which is really just a candy holiday.

How will this be important? Well, just today Treasury Secretary Yellen called ransomware a direct threat to security.

The Hill | Major US candymaker targeted in ransomware attack

What’s happening? Hacks and ransomware are occurring in greater numbers. COVID created a lot of new healthcare data.

Why is this important? The California Attorney General issued guidance to heath care industry that put the industry on notice that the office is concerned by health care data privacy.

How will this be important? The California Attorney General recommended the following minimum standards :

• keep all operating systems and software housing health data current with the latest security patches;
• install and maintain virus protection software;
• provide regular data security training for staff members that includes education onnot clicking on suspicious web links and guarding against phishing emails;
• restrict users from downloading, installing, and running unapproved software; and
• maintain and regularly test a data backup and recovery plan for all critical information to limit the impact of data or system loss in the event of a data security incident.

California Attorney General | BULLETIN: Obligation to Proactively Reduce Vulnerabilities to Ransomware Attacks and Requirements Regarding Health Data Breach Reporting

What’s happening? Financial firms identified $600Million in ransoms paid for ransomeware attacks. U.S. Department of Treasury investigators say it identified $5.2 Billion in bitcoin transactions that appear to be ransom payments.

Why is this important? The escalation is a critical infrastructure security threat.

How will this be important? Treasury conclusion is that ” private sector has collectively failed so far to take sufficient steps to protect against attacks”

Wall Street Journal | Suspected Ransomware Payments Nearly Doubled This Year, Treasury Says

What’s happening? Discussions about 2020 election audits in Pennsylvania are adding data privacy elements to prevent voter information discovered during the audit from being sold to third parties.

Why is this important? The audit standards in PA have included requests for the last 4 numbers of social securities numbers and full drivers license numbers.

How will this be important? An audit conducted by a third party would leave social security numbers and drivers license numbers accessible by a third party and transferrable.

Philadelphia Inquierer via Governing | Concerns Raised About Data Privacy Amid Pa. Election Review

What’s happening? Australia and Oklahoma have something in common- an intent to increase criminal penalties for ransomware.

Why is this important? Australia’s approach is to create a stand alone aggravated charge for ransomware. Also included is a notification requirement for businesses that pay more than $10million in ransom per year.

How will this be important? We’re seeing both of these approaches in the U.S. IN Congress we have a notification for any ransom paid being bandied about and Oklahoma passed a bill specifically criminalizing ransomware.

Australia Ransomware Action Plan

ZDNet | Australia’s new ransomware plan to create ransomware offences and reporting regime

What’s happening? China cracked down on mining, reducing mining to zero. That leaves the U.S. mining 35% of crypto currency followed by Kazakstan, Russia, Canada, Ireland, Malaysia, Germany, Iran and Norway

Why is this important? More mining means more attention from financial interests. This begets more attention from regulators.

How will this be important? The pressure of more attention on US bitcoin mining could be a catalyst for regulatory action.

Finance Magnates | The US Is Now the Biggest Bitcoin Mining Center after China’s Crackdown

What’s happening? At the Texas Blockchain Summit, U.S. Senator Ted Cruz linked natural gas flares with a potential energy source for bitcoin mining.

Why is this important? From the words of U.S. Senator Cruz: “The beauty of Bitcoin mining is that if you can connect to the internet, you can use that energy and derive value from those renewables in a way that would be impossible otherwise. And, I think we are going to see in the next five years massive innovations in that regard as well,” 

How will this be important? Miami has Miami Coin. Wyoming is open for crypto business and making moves to bank crypto currency.

Finance Magnates | Texas Should Use Abundant Energy for Bitcoin Mining, Says Ted Cruz

What’s happening? A survey released this week by Price Waterhouse and Cooper says that 69% predict a rise in cyber spending in 2022. More than 25% say cyber spending will be more than double digit growth.

Why is this important? Last year’s study showed only 55% thought there would be a rise in cyber spending. 46% are seeing increased engagement of the CEO/

How will this be important? 2021 is on pace to record setting in cybersecurity issues.

PWC | 2022 Global Digital Trust Insights Survey

What is happening? U.S. House and Senate members are advocating for standalone cybersecurity committees to “address mounting threats and streamline an increasingly bogged down process to approve legislation. “

Why is this important? As Congress does, so will your states.

How will this be important? Increase focus on cybersecurity addresses notice requirements for businesses, blockchain, cryptocurrency and more. It will touch corporations, financial institutions, law enforcement, local governments and campaign ethics. This is your alarm clock, wake up.

The Hill | Lawmakers advocate for establishment of standalone House and Senate cyber panels

What is happening? The Department of Justice has created the National Cryptocurrency Enforcement Team that will investigate cryptocurrency through the lens of cyber crimes and money laundering.

Why is this important? The announcement also included ties to ransomware as ransoms are usually in cryptocurrency.

How will this be important? Look to this enforcement hierarchy to be replicated at the state level.

The Verge | US Department of Justice creates cryptocurrency enforcement unit

What’s happening? Pac-Sun will be the 1st major retailer to accept cryptocurrency at its retail establishments.

Why is this important? PacSun will utilize blockchain payment provider, BitPay. 

How will this be important? The primary consumer for Sunpac is GenZ. The retailers decision making is driven by it’s GenZ customer base. 54% of current or former crypto owners are Gen Z according to a study by Coinbase.

Shop Eat Surf | PacSun to Accept Crypto Currency

What’s happening? S2666 (1117th Congress) would require businesses with more than 50 employees to notify Cybersecurity and Infrastructure Security Agency that a ransom had been paid within 24 hours. A business’ failure to comply could hinder federal contracts.

Why is this important? Its a blue print for state legislation

How will this be important? This and similar legislation will continue to play out on the state level. We’ve seen Oklahoma make ransomeware “illegal”

Balch & Bingham | Senate Introduces Legislation Requiring 24-hour Ransomware Notification

What’s happening? Miami has partnered with CityCoin to accept MiamiCoin for tax purposes and other city purposes. The mining and exchange generates revenue for Miami.

Why is this important? Annually the program is expected to generate $60 M and the mayor believes it will turn Miami into an innovation hub as the first city to begin this endeavor.

How will this be important? The key is watching the negotiations between the Mayor and a power plant. Cryptocurrency mining utilizes a lot of power.

Washington Post | Crypto tax: ‘MiamiCoin’ has made the city $7 million so far, a potential game-changer for revenue collection

What’s happening? Miami adopted Miamicoin, a cryptocurrency that can pay city employees, and be accepted for city taxes.  Miami is partnering with CityCoins, a nonprofit and opensource protocol that allows people to hold and trade cryptocurrency representing a stake in a municipality.

Why is this important? In a week that saw China ban all cryptocurrency, we see Miami, one of the first cities int venation to embrace crypto currency. The Miami mayor calls the program a way to transform the city into the world’s “cryptocurrency innovation hub,” 

How will this be important? The program is expected to generate $60M in the first year for the city. Since August $7.1 has been generated for Miami.

Washington Post | Crypto tax: ‘MiamiCoin’ has made the city $7 million so far, a potential game-changer for revenue collection

What’s happening? Hong Kong passed a doxxing law that prohibits the public release of information identifying an individual or organization

Why is this important? The legislation is a reaction to the 2019 mass pro-democracy protests that resulted in some law enforcement officers’ home addresses and children’s schools being exposed by anti-government protesters, leading to threats.

How will this be important? Pro-democracy groups worry that the legislation will be used to prosecute dissenters. Asia Internet Coalition, an advocacy group that includes Google, Facebook and Twitter, have said they may stop offering services.

WHBL | Hong Kong legislature passes controversial anti-doxxing privacy bill