Speaking at the Bitcoin Conference in Nashville, Republican presidential nominee Donald Trump made a number of cryptocurrency-related pledges:

• Trump promised that if elected, he'd commute the sentence of Silk Road creator Ross Ulbricht to a sentence of time served. "It's enough."

• Trump promised to change the top personnel at America's Securities and Exchange Commission. "On Day One, I will fire Gary Gensler and appoint a new SEC chairman," Trump told the crowd, drawing a long round of applause. ("I didn't know he was that unpopular," Trump joked — then repeated his promise to appoint "a new SEC chairman who believes America should build the future, not block the future, which is what they're doing.")

• Trump also promised that "As president, I will immediately shut down Operation Chokepoint 2.0." (For context, Operation Chokepoint was an Obama-era program — ended during Trump's presidency — to scrutinize bank lending to "high-risk" merchants, mostly predatory "payday" lenders. Concerns were raised that bank regulators were pressuring banks to cut off certain businesses, and while there is no official "Choke Point 2.0," the phrase has been used colloquially to describe the possibility of bank regulators pressuring specific industries like cryptocurrency.)

• Trump also announced he'd oppose a central bank digital currency — although his wording was a little idiosyncratic. "Next I will immediately order the Treasury Department and other federal agencies to cease and desist all steps necessary — because, you know, there's a thing going on in your industry. They want to move the creation of a central bank digital currency. It's over, forget it." [Audience boos CBDC's ] "CBDC — there will never be a CBDC while I'm president of the United States." (In fact a 2023 statement from America's Federal Reserve about CBDC's stresses that "no decisions have been made at this time" and that the Federal Reserve would only proceed with a CBDC after passage of an authorizing law.)

• Trump also told the audience that "We will create a framework to enable the safe and responsible expansion of staple — stablecoins," then teased the crypto-friendly audience by asking playfully "Do you know what a stablecoin is? Does anybody know — please raise your hand." Trump promised the move would "allow us to extend the dominance of the U.S. dollar to new frontiers all around the world," and that "there will be billions and billions of people brought into the crypto economy and storing their savings in bitcoin."

• Toward the end Trump said that if elected, he would direct the government not to sell any of its currently-held bitcoin, keeping it instead as the core of a "strategic national bitcoin stockpile."
  
  "As you know, most of the bitcoin currently held by the U.S. government was obtained through law enforcement action — you know that, they took it from you. 'Let's take that guy's life, let's take his family, his house, his bitcoin — we'll turn it into bitcoin.' It's been taken away from you because that's where we're going now. That's where this country is going. It's a facist regime."

In a speech which lasted for over an hour, the 78-year-old former president also criticized his political opponents, touching on topics like inflation, immigration, and his promise to "drill, baby, drill."

But Trump closed by thanking the 3,000 attendees, telling them to "have a good time with your bitcoin, and your crypto and everything else that you're playing with. And we're going to make that one of the greatest industries on earth."

The U.K. government "will substantially increase offshore wind investment in the next five years," writes long-time Slashdot reader shilly — "in partnership with the Crown Estate (a public corporation that owns land including the coastal seabed on behalf of the monarch)." It will do this via its new state-owned energy generation [and investment] company, Great British Energy. The new approach includes ensuring grid connections are in place, and is in tandem with changes to the UK's planning regime that should reduce the ability of NIMBY groups to prevent infrastructure build-outs. Since [the Labour Party] came to power 20 days ago, the government has also approved three new solar farms and reversed a ban on onshore wind.
Labour Prime Minister Keir Starmer said in a speech Thursday that "I don't just want to be in the race for clean energy; I want us to win the race for clean energy," according to an article by BNN Bloomberg: Thursday's announcement marks the first concrete step by the government to use Great British Energy in its quest for a zero-carbon electric grid by 2030. The collaboration with the Crown Estate, owners of the UK's seabed, means the public sector will get involved in projects earlier and may attract more private funding... Great British Energy is receiving £8.3 billion of taxpayer money to own and operate assets in collaboration with the private sector.
The article points out that "By allowing borrowing, the government believes 20-30 gigawatts of new offshore wind seabed leases can be secured by 2030."

As Prime Minister Keir Starmer said in his speech, "We've got the potential, we've got the ports, we've got the people, the skills."

On Wednesday, Judge Nina Morrison ruled that cellphone searches at the border are "nonroutine" and require probable cause and a warrant, likening them to more invasive searches due to their heavy privacy impact. As reported by Reason, this decision closes the loophole in the Fourth Amendment's protection against unreasonable searches and seizures, which Customs and Border Protection (CBP) agents have exploited. Courts have previously ruled that the government has the right to conduct routine warrantless searches for contraband at the border. From the report: Although the interests of stopping contraband are "undoubtedly served when the government searches the luggage or pockets of a person crossing the border carrying objects that can only be introduced to this country by being physically moved across its borders, the extent to which those interests are served when the government searches data stored on a person's cell phone is far less clear," the judge declared. Morrison noted that "reviewing the information in a person's cell phone is the best approximation government officials have for mindreading," so searching through cellphone data has an even heavier privacy impact than rummaging through physical possessions. Therefore, the court ruled, a cellphone search at the border requires both probable cause and a warrant. Morrison did not distinguish between scanning a phone's contents with special software and manually flipping through it.

And in a victory for journalists, the judge specifically acknowledged the First Amendment implications of cellphone searches too. She cited reporting by The Intercept and VICE about CPB searching journalists' cellphones "based on these journalists' ongoing coverage of politically sensitive issues" and warned that those phone searches could put confidential sources at risk. Wednesday's ruling adds to a stream of cases restricting the feds' ability to search travelers' electronics. The 4th and 9th Circuits, which cover the mid-Atlantic and Western states, have ruled that border police need at least "reasonable suspicion" of a crime to search cellphones. Last year, a judge in the Southern District of New York also ruled (PDF) that the government "may not copy and search an American citizen's cell phone at the border without a warrant absent exigent circumstances."

US presidential candidate, Robert F. Kennedy Jr., announced during his keynote Friday at the Bitcoin Conference that he would direct the US government to buy Bitcoin until the size of its Bitcoin reserves matched its gold reserves. At current prices, that equates to $615 billion worth of gold.
RFK Jr. said: "I will sign an executive order directing the US Treasury to purchase 550 Bitcoin daily until the US has built a reserve of at least 4,000,000 Bitcoins and a position of dominance that no other country will be able to usurp."
4 million Bitcoin is 19% of all Bitcoin that will ever exist.

The White House announced that Apple has "signed onto the voluntary commitments" in line with the administration's previous AI executive order. "In addition, federal agencies reported that they completed all of the 270-day actions in the Executive Order on schedule, following their on-time completion of every other task required to date." From a report: The executive order "built on voluntary commitments" was supported by 15 leading AI companies last year. The White House said the agencies have taken steps "to mitigate AI's safety and security risks, protect Americans' privacy, advance equity and civil rights, stand up for consumers and workers, promote innovation and competition, advance American leadership around the world, and more." It's a White House effort to mobilize government "to ensure that America leads the way in seizing the promise and managing the risks of artificial intelligence," according to the White House.

Internet service providers are pushing back against the Biden administration's requirement for low-cost options even as they are attempting to secure funds from a $42.45 billion government broadband initiative. The Broadband Equity, Access, and Deployment program, established by law to expand internet access, mandates that recipients offer affordable plans to eligible low-income subscribers, a stipulation the providers argue infringes on legal prohibitions against rate regulation. ISPs claim that the proposed $30 monthly rate for low-cost plans is economically unfeasible, especially in hard-to-reach rural areas, potentially undermining the program's goals by discouraging provider participation.

More students are getting high scores on Advanced Placement tests, long seen as a gateway to elite college admissions as well as a way to earn college credit during high school. From a report: Changes by the tests' maker in recent years have shifted scores upward. That has led to hundreds of thousands of additional students getting what's considered a passing score -- 3 or above on the 1-to-5 scale -- on exams in popular courses including AP U.S. History and AP U.S. Government.

The nonprofit behind the tests, College Board, says it updated the scoring by replacing its panel of experts with a large-scale data analysis to better reflect the skills students learn in the courses. Some skeptical teachers, test-prep companies and college administrators see the recent changes as another form of grade inflation, and a way to boost the organization's business by making AP courses seem more attractive.

"It is hard to argue with the premise of AP, that students who are talented and academically accomplished can get a head start on college," said Jon Boeckenstedt, the vice provost of enrollment at Oregon State University. "But I think it's a business move." The number of students cheering their higher AP scores could rise again next year. The College Board said it is still recalibrating several other subjects, including its most popular course, AP English Language, which attracts more than half a million test takers.

snydeq shares a report from CIO.com: ServiceNow has reported potential compliance issues to the US Department of Justice "related to one of its government contracts" as well as the hiring of the then-CIO of the US Army to be its head of global public sector, the company said in regulatory filings on Wednesday. The DOJ is looking into the matter. Following an internal investigation, ServiceNow said, its President and COO, CJ Desai, has resigned, while "the other individual has also departed the company." That executive, Raj Iyer, told CIO.com, "I resigned because I didn't want to be associated with this fiasco in any way. It's not my fault." CEO Bill McDermott told financial analysts in a conference call Wednesday that someone within ServiceNow had complained about the situation and that an internal probe "determined that our company policy was violated."

"Acting with total transparency, the company proactively disclosed the findings of the investigation to the proper government entities. And as a result, today, we're announcing the departure of the individual whose hiring was the subject of the original complaint," McDermott said. "We also came to a mutual agreement that CJ Desai, our President and COO, would offer his resignation from the company effective immediately. While we believe this was an isolated incident, we are further sharpening our hiring policies and procedures as a result of the situation."

Malaysia's digital minister said today he has asked global tech firms Microsoft and CrowdStrike to consider compensating companies that suffered losses during last week's global tech outage. From a report: Five government agencies and nine companies operating in aviation, banking and healthcare were among those affected in Malaysia, minister Gobind Singh Deo told reporters. "If there are any damages or losses, where there have been any parties that have made such claims, I've asked them to consider those claims and see to what extent they are able to help resolve the issue," Gobind said, adding that the government would also assist on the claims where possible. The total amount of losses incurred has not yet been determined, he said. The outage will cost Fortune 500 companies $5.4 billion, according to estimates from insurers. The projected financial losses exclude Microsoft.

Meta CEO Mark Zuckerberg has advocated for open-source AI development, asserting it as a strategic advantage for the United States against China. In a blog post, Zuckerberg argued that closing off AI models would not effectively prevent Chinese access, given their espionage capabilities, and would instead disadvantage U.S. allies and smaller entities. He writes: Our adversaries are great at espionage, stealing models that fit on a thumb drive is relatively easy, and most tech companies are far from operating in a way that would make this more difficult. It seems most likely that a world of only closed models results in a small number of big companies plus our geopolitical adversaries having access to leading models, while startups, universities, and small businesses miss out on opportunities. Plus, constraining American innovation to closed development increases the chance that we don't lead at all. Instead, I think our best strategy is to build a robust open ecosystem and have our leading companies work closely with our government and allies to ensure they can best take advantage of the latest advances and achieve a sustainable first-mover advantage over the long term.

Negotiations on a global tax deal have extended beyond the June 30 deadline, with countries now looking to the G20 finance leaders meeting for progress. "The stakes in the negotiations are high," reports Reuters. "A failure to reach agreement on final terms could prompt several countries to reinstate their taxes on U.S. tech giants and risk punitive duties on billions of dollars in exports to the U.S." Some countries, like Canada, have already implemented their own digital services tax. Reuters reports: The so-called "Pillar 1" arrangement, part of a 2021 global two-part tax deal, aims to replace unilateral digital services taxes (DSTs) on U.S. tech giants including Alphabet's Google, Amazon.com and Apple through a new mechanism to share taxing rights on a broader, global group of companies. Standstill agreements under which Washington has suspended threatened trade retaliation against seven countries -- Austria, Britain, France, India, Italy, Spain and Turkey -- expired on June 30, but the U.S. has not taken steps to impose tariffs.

Discussions on the matter are continuing. An Italian government source said that European countries were seeking assurances that the U.S. tariffs on some $2 billion worth of annual imports from French Champagne to Italian handbags and optical lenses remained frozen while the talks continue, including at the G20 meeting in Rio de Janeiro. A European Union document prepared for the G20 meeting lists finalizing the international tax deal as a "top priority." It said the G20 should urge countries and jurisdictions participating in the tax deal "to finalize discussions on all aspects of Pillar 1, with a view to signing the Multilateral Convention (MLC) by summer end and ratifying it as soon as possible." "Treasury continues to oppose all tax measures that discriminate against U.S. businesses," a U.S. Treasury spokesperson said in response to Canada's move. "We encourage all countries to finalize the work on the Pillar 1 agreement. We are in active discussions on next steps related to the existing DST joint statements."

According to Bloomberg, hackers have leaked internal documents stolen from Leidos Holdings, one of the largest IT services providers of the U.S. government. Reuters reports: The company recently became aware of the issue and believes the documents were taken during a previously reported breach of a Diligent Corp. system it used, the report said, adding that Leidos is investigating it. The Virginia-based company, which counts the U.S. Department of Defense as its primary customer, used the Diligent system to host information gathered in internal investigations, the report added, citing a filing from June 2023. A spokesperson for Diligent said the issue seems to be related to an incident from 2022, affecting its subsidiary Steele Compliance Solutions. The company notified impacted customers and had taken corrective action to contain the incident in November 2022.

An anonymous reader quotes a report from the Center for European Policy Analysis (CEPA): Alexey Soldatov, a Russian Internet pioneer and a founder of the first Internet provider in the country, has been sentenced by a court to two years in a labor colony on charges of "abuse of power." Soldatov, 72, had been detained by a court in Moscow. He is terminally ill. Very few in Russia believe in the government charges against a man widely known as a Father of the Russian Internet -- and who is less well known as the father of Andrei Soldatov, one of this article's authors. Soldatov was accused of abuse of power when managing a pool of IP-addresses by an organization he had no position at. This legal absurdity was enough to see him imprisoned even though the court knew of Soldatov's illness, which meant the court had no legal right to pass a custodial sentence. His family believes that the decision is essentially a death sentence. The article details Soldatov's history and his pivotal role in creating the Relcom network, which connected Soviet research centers and established the Soviet Union's first link to the global internet in 1990. During the 1991 KGB coup attempt, Relcom remained operational, highlighting its role in bypassing traditional media control and connecting people both within the Soviet Union and globally.

According to the Washington Post (paywalled), the House Homeland Security Committee has called on the CrowdStrike CEO to testify over the major outage that brought flights, hospital procedures, and broadcasters to a halt on Friday. The outage was caused by a defective software update from the company that primarily affected computers runnings Windows, resulting in system crashes and "blue screen of death" errors. From the report: Republican leaders of the House Homeland Security Committee demanded that CrowdStrike CEO George Kurtz commit by Wednesday to appearing on Capitol Hill to explain how the outages occurred and what "mitigation steps" the company is taking to prevent future episodes. [...] Reps. Mark Green (R-Tenn.) and Andrew R. Garbarino (R-N.Y.), chairs of the Homeland Security Committee and its cybersecurity subcommittee, respectively, wrote in their letter that the outages "must serve as a broader warning about the national security risks associated with network dependency. Protecting our critical infrastructure requires us to learn from this incident and ensure that it does not happen again," the lawmakers wrote. CrowdStrike spokesperson Kirsten Speas said in an emailed statement Monday that the company is "actively in contact" with the relevant congressional committees and that "engagement timelines may be disclosed at Members' discretion," but declined to say whether Kurtz will testify.

The committee is one of several looking into the incident, with members of the House Oversight Committee and House Energy and Commerce Committee separately requesting briefings from CrowdStrike. But the effort by Homeland Security Committee leaders marks the first time the company is being publicly summoned to testify about its role in the disruptions. CrowdStrike has risen to prominence as a major security provider partly by identifying malicious online campaigns by foreign actors, but the outages have heightened concern in Washington that international adversaries could look to exploit future incidents. "Malicious cyber actors backed by nation-states, such as China and Russia, are watching our response to this incident closely," Green and Garbarino wrote. The outages, which disrupted agencies at the federal and state level, are also raising questions about how much businesses and government officials alike have come to rely on Microsoft products for their daily operations.

Switzerland has enacted the "Federal Law on the Use of Electronic Means for the Fulfillment of Government Tasks" (EMBAG), mandating open-source software (OSS) in the public sector to enhance transparency, security, and efficiency. "This new law requires all public bodies to disclose the source code of software developed by or for them unless third-party rights or security concerns prevent it," writes ZDNet's Steven Vaughan-Nichols. "This 'public money, public code' approach aims to enhance government operations' transparency, security, and efficiency." From the report: Making this move wasn't easy. It began in 2011 when the Swiss Federal Supreme Court published its court application, Open Justitia, under an OSS license. The proprietary legal software company Weblaw wasn't happy about this. There were heated political and legal fights for more than a decade. Finally, the EMBAG was passed in 2023. Now, the law not only allows the release of OSS by the Swiss government or its contractors, but also requires the code to be released under an open-source license "unless the rights of third parties or security-related reasons would exclude or restrict this."

Professor Dr. Matthias Sturmer, head of the Institute for Public Sector Transformation at the Bern University of Applied Sciences, led the fight for this law. He hailed it as "a great opportunity for government, the IT industry, and society." Sturmer believes everyone will benefit from this regulation, as it reduces vendor lock-in for the public sector, allows companies to expand their digital business solutions, and potentially leads to reduced IT costs and improved services for taxpayers.

In addition to mandating OSS, the EMBAG also requires the release of non-personal and non-security-sensitive government data as Open Government Data (OGD). This dual "open by default" approach marks a significant paradigm shift towards greater openness and practical reuse of software and data. Implementing the EMBAG is expected to serve as a model for other countries considering similar measures. It aims to promote digital sovereignty and encourage innovation and collaboration within the public sector. The Swiss Federal Statistical Office (BFS) is leading the law's implementation, but the organizational and financial aspects of the OSS releases still need to be clarified.

For decades, American and Chinese scientists collaborated on supercomputers. But Chinese scientists have become more secretive as the U.S. has tried to hinder China's technological progress, and they have stopped participating altogether in a prominent international supercomputing forum. From a report: The withdrawal marked the end of an era and created a divide that Western scientists say will slow the development of AI and other technologies as countries pursue separate projects. The new secrecy also makes it harder for the U.S. government to answer a question it deems essential to national security: Does the U.S. or China have faster supercomputers? Some academics have taken it upon themselves to hunt for clues about China's supercomputing progress, scrutinizing research papers and cornering Chinese peers at conferences.

Supercomputers have become central to the U.S.-China technological Cold War because the country with the faster supercomputers can also hold an advantage in developing nuclear weapons and other military technology. "If the other guy can use a supercomputer to simulate and develop a fighter jet or weapon 20% or even 1% better than yours in terms of range, speed and accuracy, it's going to target you first, and then it's checkmate," said Jimmy Goodrich, a senior adviser for technology analysis at Rand, a think tank. The forum that China recently stopped participating in is called the Top500, which ranks the world's 500 fastest supercomputers. While the latest ranking, released in June, says the world's three fastest computers are in the U.S., the reality is probably different.

The Japan Newspaper Publishers and Editors Association claims that AI-powered search engines by U.S. tech giants like Google and Microsoft likely infringe on copyright by using news articles without permission. Therefore, they're urging the Japanese government to quickly review and revise intellectual property laws to address these issues. Kyodo News reports (translated in English): The association argued in the statement that while traditional search engines direct users to various copyrighted material available online, AI search engines disclose the content, making them a completely different type of service. While stressing that in many instances, the essential content of the referenced article is reprinted in its entirety and therefore constitutes copyright infringement, the association also highlighted the issue of "zero-click searches," where users do not visit the source site. It warned that the lack of traffic could lead to the diminution of news organizations' reporting activities, which would then have a negative impact on democracy and culture.

The statement also expressed concern over potential inaccuracies in responses generated by AI search engines, which could give the impression that the source articles themselves were erroneous and damage the credibility of news organizations. The association added that providing AI search engine services without obtaining permission to use the source articles could violate the antimonopoly law. "There are many reasons AI companies are attracted to Japan, including the need for its companies to rapidly develop their digital capabilities and the country's declining population, which is very open to AI," said Yutaka Matsuo, a professor at Tokyo University and chair of the government's AI council, in a statement to the Financial Times. "One other attraction is that AI companies are permitted to learn from information without infringing copyright laws," he added.

The Financial Times says the push to bring AI companies to Japan has raised alarm for some content creators who worry their work isn't being protected. "As it relates to generative AI, Japan's existing Copyright Act does not contribute to protecting creators. In fact, it is focused on restricting the rights of creators," the Japanese Society for Rights of Authors, Composers and Publishers said in a statement.

The BBC reports that "while most of the world was grappling with the blue screen of death on Friday," there was one country that managed to escape largely unscathed: China. The reason is actually quite simple: CrowdStrike is hardly used there. Very few organisations will buy software from an American firm that, in the past, has been vocal about the cyber-security threat posed by Beijing. Additionally, China is not as reliant on Microsoft as the rest of the world. Domestic companies such as Alibaba, Tencent and Huawei are the dominant cloud providers.

So reports of outages in China, when they did come, were mainly at foreign firms or organisations. On Chinese social media sites, for example, some users complained they were not able to check into international chain hotels such as Sheraton, Marriott and Hyatt in Chinese cities. Over recent years, government organisations, businesses and infrastructure operators have increasingly been replacing foreign IT systems with domestic ones. Some analysts like to call this parallel network the "splinternet".

"It's a testament to China's strategic handling of foreign tech operations," says Josh Kennedy White, a cybersecurity expert based in Singapore. "Microsoft operates in China through a local partner, 21Vianet, which manages its services independently of its global infrastructure. This setup insulates China's essential services — like banking and aviation — from global disruptions."
"Beijing sees avoiding reliance on foreign systems as a way of shoring up national security."

Thanks to long-time Slashdot reader hackingbear for sharing the article.

Slashdot covered Barrett Brown back in 2011 and 2012. The New York Times calls him "an activist associated with the hacker group Anonymous, and a political prisoner recently denied asylum in Britain, all of which sounds a bit dreary until we hear tell of it through Brown's unhinged self-regard."

They're reviewing Brown's "extraordinary" new memoir, My Glorious Defeats: Hacktivist, Narcissist, Anonymous," a book they call "deranged, hyperbolic, and true." A "machine" that focuses attention on little-known social issues, Anonymous has gone after the Church of Scientology, Koch Industries, websites hosting child pornography and the Westboro Baptist Church. The public tends to be confused by nebulous digital activities, so it was, in the collective's heyday, helpful to have Brown act as a translator between the hackers and mainstream journalists. "The year 2011 ended as it began," he writes, "with a sophisticated hack on a state-affiliated corporation that ostensibly dealt in straightforward security and analysis while secretly engaging in black ops campaigns against activists who'd proven troublesome to powerful clients."

This particular corporation was Stratfor, a company that spied on activists for the government... Brown waited for the feds to come back and drag him to jail. He also says he tried to get off suboxone in order to avoid the painful possibility of prison withdrawal, and stopped taking Paxil, inducing a manic state, all of which is given as explanation for his regrettable next move, which was to set up a camera and start talking. The feds had threatened his mother, he told the internet, and in response he was threatening Robert Smith, the lead agent on his case. He found himself in custody the same night.

Brown was then subjected to the kind of nonsense the Department of Justice is prone to inflicting on those involved in shadowy internet activities that, in fact, almost no one in the legal process understands. He was charged with participating in the hack of Stratfor, though he was not really involved and cannot code, and although the whole thing was organized by an F.B.I. informant. Brown had also retweeted a Fox News host's call to murder Julian Assange; the prosecution presented this as if he were himself calling for the murder of Assange. But generally, Brown's primary victim is himself. "My thirst for glory and hatred for the state," he writes, "were incompatible with an orthodox criminal defense, in which the limiting of one's sentence is the sole objective."

In his cell, with an eraser-less pencil he needs a compliant guard to repeatedly sharpen, he writes "The Barrett Brown Review of Arts and Letters and Jail." His mother types it up; The Intercept publishes. He develops the character he will play in his memoir: a self-aware narcissist and addict. He wins a National Magazine Award, and is especially pleased that his column "Please Stop Sending Me Jonathan Franzen Novels," wins while Franzen is in attendance.
"The state is an afterthought here — a litany of absurdist horrors too stupid to appall..." the review concludes.

"We're left with a man who refuses to look away from the deep structure of the world, an unstable position from which there is no sanctuary. My Glorious Defeats is deranged, hyperbolic and as true a work as I have read in a very long time."

SolarWinds still faces some legal action over its infamous 2020 breach, reports NextGov.com. But a U.S. federal judge has dismissed most of the claims from America's Securities and Exchange Commission, which "alleged the company defrauded investors because it deliberately hid knowledge of cyber vulnerabilities in its systems ahead of a major security breach discovered in 2020."

Slashdot reader krakman shares this report from the Washington Post: "The SEC's rationale, under which the statute must be construed to broadly cover all systems public companies use to safeguard their valuable assets, would have sweeping ramifications," [judge] Engelmayer wrote in a 107-page decision. "It could empower the agency to regulate background checks used in hiring nighttime security guards, the selection of padlocks for storage sheds, safety measures at water parks on whose reliability the asset of customer goodwill depended, and the lengths and configurations of passwords required to access company computers," he wrote. The federal judge also dismissed SEC claims that SolarWinds' disclosures after it learned its customers had been affected improperly covered up the gravity of the breach...

In an era when deeply damaging hacking campaigns have become commonplace, the suit alarmed business leaders, some security executives and even former government officials, as expressed in friend-of-the-court briefs asking that it be thrown out. They argued that adding liability for misstatements would discourage hacking victims from sharing what they know with customers, investors and safety authorities. Austin-based SolarWinds said it was pleased that the judge "largely granted our motion to dismiss the SEC's claims," adding in a statement that it was "grateful for the support we have received thus far across the industry, from our customers, from cybersecurity professionals, and from veteran government officials who echoed our concerns."
The article notes that as far back as 2018, "an engineer warned in an internal presentation that a hacker could use the company's virtual private network from an unauthorized device and upload malicious code. Brown did not pass that information along to top executives, the judge wrote, and hackers later used that exact technique." Engelmayer did not dismiss the case entirely, allowing the SEC to try to show that SolarWinds and top security executive Timothy Brown committed securities fraud by not warning in a public "security statement" before the hack that it knew it was highly vulnerable to attacks.

The SEC "plausibly alleges that SolarWinds and Brown made sustained public misrepresentations, indeed many amounting to flat falsehoods, in the Security Statement about the adequacy of its access controls," Engelmayer wrote. "Given the centrality of cybersecurity to SolarWinds' business model as a company pitching sophisticated software products to customers for whom computer security was paramount, these misrepresentations were undeniably material."