Today in TechREG, the U.S. Supreme court has temporarily blocked a Texas law that prohibits online platforms from suppressing user posts based on their political views. Until pending litigation on the merits of the case is resolved, social media companies can continue exercising content moderation as they see fit. Plus, in the U.K., the government is proposing changes in the insolvency regime to grant the Bank of England powers to regulate digital assets, including stablecoins, which could pose a risk to the financial stability of the country.
Social media firms have obtained an important court victory after the U.S. Supreme Court issued a ruling suspending a Texas law that aims to prohibit online platforms from suppressing user posts based on their political views. In a split 5-4 vote, the court granted an emergency stay request from tech industry groups that petitioned to block the law, which is currently being appealed in a federal appellate court. The tech groups warned that the law could unleash a torrent of hate speech and disinformation on their platforms.
The U.K. Treasury has launched a consultation proposing an insolvency regime for digital assets, and in particular for systemic stablecoins. The proposed regime would position the Bank of England (BoE), instead of the Financial Conduct Authority (FCA), as the lead institution managing the collapse of a stablecoin that has systemic importance to the financial system. The government intends to add to the existing insolvency regime an additional objective covering the return or transfer of funds and custody assets to the users. This would allow administrators to consider the return of customer funds and private keys as well as continuity of service.
Technology experts and academics are targeting lawmakers in a campaign to counter lobbying efforts on Capitol Hill by the cryptocurrency industry. In a letter, they wrote: “We urge you to resist pressure from digital asset industry financiers, lobbyists and boosters to create a regulatory safe haven for these risky, flawed and unproven digital financial instruments.”
California Privacy Agency Releases Draft Rules Leaving Questions Unanswered
The California Privacy Protection Agency has unveiled a preliminary draft of its proposed privacy regulation. The 66-page draft includes seven pages of detailed requirements for obtaining and implementing consumer direction regarding the sale and sharing of personal information, but according to some legal experts, it does not cover a number of privacy hot topics.
US Chamber Warns of Difficulties in Implementing EU’s New Subsidy Rules
Proposed European Union legislation targeting foreign state-backed buyers of European companies prompted by fears of a Chinese buying spree may be impossible to comply with in practice, the American Chamber of Commerce and peer groups for Indian and Japanese businesses said Wednesday (June 1).