InfoHive – Data Security

What’s happening? You know those states we’ve talked about that are providing liability protections for businesses that up their data security standards. The OH, UT, and CTs of the U.S.? Well, CT also removed the option of punitive damages. I’m pretty sure at least OH did too.

Why is this important? More data breaches, more ransom ware, the more potential for litigation. The more litigation, the more businesses asking for liability protection legislation.

How will this be important? 3 of 50 states have acted on this…. How many states do you know that like art reform legislation like this…

National Law Review | Connecticut Does Away With Punitive Damages in Certain Data Breach Litigations

What’s happening? The federal infrastructure bill has $1billion for state and local cybersecurity. It can be appropriated like this:

• 80% of funds must be sent to local entities by the state
• 25% reserved for rural areas
• There is also a $250 million grant program for rural and municipal utilities
• Both grant programs require a cybersecurity plan be submitted to the U.S. Department of Homeland Security for review.

Why is this important? “State and local governments need more resources to prevent cyberattacks that can devastate their ability to carry out day-to-day functions that citizens rely on, from protecting school data to keeping utilities up and running,” – U.S. Senator Maggie Hassan

How will this be important? We have states passing laws prohibiting ransoms from being paid when local governmental systems have been locked by ransomware. Cybersecurity is an ongoing funding item.

Route Fifty | Infrastructure Bill Includes $1B for State and Local Cybersecurity

What’s happening? This year Maine became the 1st state in the nation to ban the use of facial recognition software.

Why is this important? Bans of facial recognition software up until then had been highly local and limited to county or city government bans.

How will this be important? Maine is talking about it in terms of civil liberties and personal privacy.

Q106.5 | FACIAL RECOGNITION TECHNOLOGY? NOT IN MAINE.

What’s happening? Fortune is profiling Caitlin Long who has helped pass 24 crypto friendly bills to make WY the wild Wild West of BlockChain.

Why is this important? She is  CEO of “crypto bank” startup Avanti Financial Group

How will this be important? WY is setting itself up to have the first crypto bank

Fortune | How Caitlin Long turned Wyoming into crypto country

What’s happening? The Freedom Fest which use to be in Las Vegas, and for 2021 is in South Dakota, because it has the fewest COVID restrictions is lumping together 2nd amendment advocates, rights for sex workers and crypto currency supporters. They describe themselves as trending libertarian.

Why is this important? Crypto currency policy is so new, this could be part of a road map to figure out who your allies are.

How will this be important? Tracking the similar supporting causes helps you understand the playing field.

SDPB | ‘Freedom Fest’ Brings Thousands To Black Hills

What’s happening? States like NY, NC, TX & PA are considering legislation to prohibit state governmental entities and local governmental entities from paying ransoms to ransomware

Why is this important? Ransomware attacks are increasingly common and how their handled varies. By removing the ability to pay, the policy logic is the state also removes the likelihood of attack. If these measures succeed, then are businesses more likely to be attacked? Do we see the next round of legislation that prohibits businesses from paying a ransom?

How will this be important? Some hackers may hack for the ransom and some may hack for the disruption. Forcing a city or state to rebuild their systems can be costly and time consuming.

Route Fifty | States Weigh Bans on Ransomware Payoffs

What’s happening? Georgia, the country, is placing some its wine production on blockchain allowing investors and enthusiasts to track provenance and buy and sell associated non-fungible tokens 

Why is this important? First, NFTs are new, hot items. Secondly, the blockchain tracking of Provence will improve the reputation of Georgian wines and will be tied to its wine’s quality-assurance standard

How will this be important? The legislation beings together the wine industry, blockchain technology companies and customers.

NASDAQ | Georgia to Put Its Wine on the Blockchain

What’s happening? The EU is adopting new rules requiring those who send and receive cryptocurrency to track senders and recipients

Why is this important? to keep track of dirty money transactions, which is largely the same rules that exist for wire transfers

How will this be important? These new rules can track down money launders and those who finance terrorism

Thompson Reuters | EU to tighten rules on cryptoasset transfers

What is happening? CT is starting an incentive program for businesses to adopt cyber security measures. HB 6607 (2021 | CT)

Why is this important? The goal is to “reward companies for creating and maintaining a written cybersecurity program with administrative, technical and physical safeguards to protect both personal information and the businesses’ confidential data.”

How will this be important? Companies will receive liability protection just like OH and UT.

MSSP | Connecticut offers incentives to businesses, MSSPs to install cybersecurity controls

What’s happening?

• 21 states considered blockchain legislation
• Miami considered paying its workers in cryptocurrency
• Miami considered receiving tax payments in cryptocurrency
• SF 38 (2021 | WY) in Wyoming made WY the first state to recognize decentralized autonomous organizations (DAOs)
  • Fun fact: WY was the first state to recognize the LLC in the 1970s

Why is this important? Other states are going to start recognizing DAOs

How will this be important?

• There’s an argument that storing information on blockchain’s distributed ledger is safer from hackers.
• In 2019 Colorado passed SB 19-023 (2019-CO) that exempts some digital assets from state securities regulations

Governing | Mountain West Extends Blockchain’s Digital Frontier