Sam Altman’s ouster shows Biden isn’t handling AI properly

Published

1 year ago

November 22, 2023

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CbatGPT developer OpenAI announced last week that it had fired CEO Sam Altman due to a loss of confidence by the board — only to see him return to the company after 90% of OpenAI staffers threatened to resign. The firing caused a flurry of excitement from companies offering to match OpenAI salaries in an attempt to lure top-tier talent.

The debacle — and its associated lack of transparency — highlighted the need to regulate AI development, particularly when it comes to security and privacy. Companies are developing their artificial intelligence divisions rapidly and a reshuffling of talent could propel one company ahead of others and existing laws. While President Joe Biden has taken steps to that effect, he has been relying on executive orders, which do not require input from Congress. Instead, they rely on agency bureaucrats to interpret them — and could change when a new president is inaugurated.

Biden this year signed an executive order related to the “safe, secure, and trustworthy artificial intelligence.” It commanded AI companies to “protect” workers from ‘harm,’ presumably in reference to the potential loss of their jobs. It also tasked the Office of Management and Budget (OMB) and Equal Employment Opportunity Commission (EEOC) with, in part, establishing governing structures within federal agencies. It also asked the Federal Trade Commission (FTC) to self-evaluate and determine whether it has the authority “to ensure fair competition in the AI marketplace and to ensure that consumers and workers are protected from harms that may be enabled by the use of AI.”

Biden’s executive orders are not going to last long

The fundamental problem with an approach driven by executive fiat is its fragility and limited scope. As evident by the SEC and CFTC’s (largely unsuccessful) attempts to classify cryptocurrencies as securities, tasking agencies with promulgating laws can cause confusion and apprehension amongst investors, and are ultimately open to interpretation by the courts.

Policies developed by agencies without legislative support also lack permanence. While public input is necessary for the passing of agency-backed regulations, the legislative process allows consumers of artificial intelligence and digital assets to have a stronger voice and assist with the passage of laws that deal with actual problems users face — instead of problems invented by often ambitious bureaucrats.

BREAKING: In a sudden turn of events, OpenAI signs agreement to bring Sam Altman back to the company as CEO.

There will be a new board of directors initially consisting of Bret Taylor, Larry Summers, and Adam D’Angelo.

Less than 1 week after Sam Altman was fired, OpenAI is…

— The Kobeissi Letter (@KobeissiLetter) November 22, 2023

Biden’s failure to address the complex ethical implications of AI implementation on a mass scale is dangerous; concerns such as bias in algorithms, surveillance and privacy invasion are barely being addressed. Those issues should be addressed by Congress, made up of officials elected by the people, rather than agencies composed of appointees.

Without the rigorous debate required for Congress to pass a law, there is no guarantee of a law that promotes security and privacy for everyday users. Specifically, users of artificial intelligence need to have control over how this automated technology uses and stores personal data. This concern is particularly acute in the field of AI, where many users fail to understand the underlying technology and the severe security concerns that come with sharing personal information. Furthermore, we need laws that ensure companies are conducting risk assessments and maintaining their automated systems in a responsible manner.

New #OpenAI board

Bret Taylor former Twitter Board Chair & #Salesforce President#Quora’s CEO Adam D’Angelo stays

Larry Summers former Treasury head joins https://t.co/95Y4uhuPWM

— Susan Li (@SusanLiTV) November 22, 2023

Reliance on regulations enacted by federal agencies will ultimately lead to confusion — consumers distrusting artificial intelligence. This precise scenario played out with digital assets after the SEC’s lawsuits against Coinbase, Ripple Labs, and other crypto-involved institutions, which made some investors apprehensive about their involvement with crypto companies. A similar scenario could play out in the field of AI where the FTC and other agencies sue AI companies and tie vital issues up in the court system for years ahead.

It’s imperative that Biden engage Congress on these issues instead of hiding behind the executive branch. Congress, in turn, must rise to the occasion, crafting legislation that encapsulates the concerns and aspirations of a diverse set of stakeholders. Without such collaborative efforts, the United States risks repeating the pitfalls experienced in the digital assets domain, potentially lagging behind other nations and driving innovation elsewhere. More importantly, the security and privacy of American citizens — as well as many around the globe — is in jeopardy.

John Cahill is an associate in national law firm Wilson Elser’s White Plains, N.Y., office. John focuses his practice on digital assets, and ensures that clients comply with current and developing laws and regulations. He received a B.A. from St. Louis University and a J.D. from New York Law School.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Politics

Australia’s finance watchdog to crack down on dormant crypto exchanges

Published

3 hours ago

April 30, 2025

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Australia’s finance watchdog to crack down on dormant crypto exchanges

Australia’s financial intelligence agency has told inactive registered crypto exchanges to withdraw their registrations or risk having them canceled over fears that the dormant firms could be used for scams.

There are currently 427 crypto exchanges registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), but the agency said on April 29 that it suspects a significant number are inactive and possibly vulnerable to being bought and co-opted by criminals.

The agency is contacting any so-called digital currency exchanges (DCEs) that appear to no longer be trading, and AUSTRAC CEO Brendan Thomas said they’ll be told to “use it or lose it.”

“Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided,” he added.

Businesses wanting to offer Australians conversions between cash and crypto, including crypto ATM providers, must first register with AUSTRAC, which monitors for crimes including money laundering, terror financing and tax evasion.

The agency can cancel a registration if it has reasonable grounds to believe the business is no longer active or offering crypto-related services.

Ten firms have had their AUSTRAC registration canceled since 2019, with the most recent being FTX Express in June 2024, the local subsidiary of the collapsed crypto exchange FTX.

AUSTRAC to launch public list of registered exchanges

Following its blitz on inactive crypto exchanges, AUSTRAC said it will publish a list of registered exchanges to help Australians verify legitimate providers.

Thomas said the goal is to make it harder for criminals to scam people and improve the integrity and accuracy of AUSTRAC’s register.

“If a DCE does intend to offer a service, they need to contact us otherwise we will cancel the registration and this information will be added to the register,” he said.

“Members of the public should feel confident that they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight and that we are driving criminals out of this industry,” Thomas added.

In February, the Anti-Money Laundering regulator took action against 13 remittance service providers and crypto exchanges, with over 50 others still being investigated regarding possible compliance issues.

Six providers were refused registration renewal on the grounds that key personnel were either convicted, prosecuted, or charged with a serious offense.

Australia has yet to pass crypto regulations. In August 2022, the ruling center-left Labor Party initiated a series of industry consultations to draft a crypto regulatory framework.

In March, the government proposed a new crypto framework regulating exchanges under existing financial services laws ahead of a federal election slated for May 3.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Politics

Crush fly-tippers’ vans, government tells councils

Published

6 hours ago

April 30, 2025

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Crush fly-tippers' vans, government tells councils

The government wants councils to crush more vans used to fly-tip rubbish, as it announces a crackdown on the illegal dumping of waste.

No new funding is being given to local authorities for the initiatives, with ministers saying the seven percent raise announced in the budget can be used.

As part of the announcement, the government has also proposed that fly-tippers could face up to five years in prison, although this would require a change in the law.

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Environment Secretary Steve Reed said: “Councils will get much more aggressive against fly-tippers and that includes using the latest technology, things like the new mobile CCTV cameras and drones to identify, track and then seize the vehicles that are being used for fly-tipping to a yard like this and crush them.

“That’s both as a punishment for those people who are dumping the rubbish but also as a deterrent for those who are thinking about doing it.”

He added: “We’re also looking to change the law so that those rogue operators who take rubbish from someone’s home and then dump it on a nearby road – they were getting away almost scot-free under the previous government – they will now be looking at potentially five-year prison sentences.”

The minister claimed the fly-tipping was “out of control” under the last government.

Data from the Department for Environment, Food and Rural Affairs (DEFRA) shows local authorities in England dealt with a record 1.15 million incidents last year – a 20% increase from 2018/19.

Environment Agency chief executive Philip Duffy said: “We’re determined to bring these criminals to justice through tough enforcement action and prosecutions.

“That’s why we support the government’s crackdown on waste criminals, which will ensure we have the right powers to shut rogue operators out of the waste industry.”

However, the Conservatives claimed that rubbish is “piling high” in areas like Birmingham as refuse workers strike against a pay and jobs offer from the Labour-run council.

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Shadow environment secretary Victoria Atkins said: “Wherever Labour is in charge, waste is piling high – like in Birmingham, where Labour’s inability to stand up to their union paymasters has left rat-infested rubbish littered across the street.

“And with statistics showing that of the 50 worst local areas for fly-tipping, 72% are Labour controlled, it is clear that voting Labour gets you rubbish and rats.

“So the British public deserve real action, not this series of reheated announcements and policies already introduced by previous governments that Labour is peddling.”

Liberal Democrat deputy leader Daisy Cooper said: “Under the Conservatives’ watch, local communities have been plagued by a fly-tipping epidemic.

“From overflowing bins to piles of hazardous waste, fly-tipping is blighting our landscapes, poisoning livestock on farming land and causing misery for residents.

“Enough is enough.

“The Liberal Democrats are calling for a fly-tipping fighting fund, to push for stronger local enforcement and tougher penalties for offenders.”

Politics

US Senate majority leader expects stablecoin vote before May 26 — Report

Published

7 hours ago

April 29, 2025

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US Senate majority leader expects stablecoin vote before May 26 — Report

US Senate Majority Leader John Thune reportedly told Republican lawmakers that the chamber would address a bill on stablecoin regulation before the May 26 Memorial Day holiday.

According to an April 29 Politico report, Thune made the comments in a closed-door meeting with Republican senators, who hold a slim majority in the chamber. The Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, was introduced by Senator Bill Hagerty in February and passed the Senate Banking Committee in March.

Thune did not mention any crypto or blockchain-related bills in his public comments on US President Donald Trump’s first 100 days in office. Since his Jan. 20 inauguration, Trump has signed several executive orders with the potential to affect US crypto policy, including one affecting stablecoins. Still, many of the actions do not carry the force of law without an act of Congress.

The proposed GENIUS bill could essentially restrict any entity other than a “permitted payment stablecoin issuer” from issuing a payment stablecoin in the United States. The House of Representatives, also controlled by Republicans, has proposed a companion bill to the legislation: the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act.

Trump accused of conflicts of interest over stablecoins, crypto ventures

The president’s executive order, signed on Jan. 23, established a working group to study the potential creation and maintenance of a national crypto stockpile and a regulatory framework for stablecoins. Republican lawmakers followed by introducing the STABLE and GENIUS acts.

Trump also introduced the order before World Liberty Financial, a crypto firm backed by the president’s family, launched its US-dollar pegged USD1 stablecoin. Many Democratic lawmakers said that Trump’s ties to the firm, coupled with his political influence and position, could present an “extraordinary conflict of interest that could create unprecedented risks to our financial system” as Congress considers the two stablecoin bills.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions