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For good reason, much attention was devoted to the Supreme Court’s oral arguments on Monday, over government pressure on social media companies to suppress speech that officialdom doesn’t like. The same day, though, justices heard arguments in another important case involving free speech principles violated when New York officials leaned on financial institutions to deny services to the National Rifle Association. Importantly, both cases involved “jawboning,” the use by government of threats to improperly coerce compliance.

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Δ When Communication Becomes Coercion

As Reason’s Jacob Sullum ably summarizes, arguments in Murthy v. Missouri involve “dueling interpretations of the Biden administration’s interactions with social media platforms regarding content it viewed as dangerous to public health, democracy, or national security,” with plaintiffs arguing that “those private contacts, combined with public statements condemning the platforms’ failure to suppress ‘misinformation,’ amounted to government-directed censorship.”

At stake is the point at which efforts to persuade private companies they ought not offer platforms to certain speakers morph into “nice business you got there; it’d be a shame if something happened to it.” Did officials cross the line when they badgered tech firms to muzzle voices skeptical of lockdowns, COVID vaccinations, and election integrity? If you’ve followed the Twitter and Facebook Files, you know there’s significant evidence they did, though it remains to be seen if Supreme Court justices agree.

Remarkably, the evidence of improper strong-arming appears even clearer in National Rifle Association of America v. Vullo. In that case, the NRA, joined by the ACLU, alleges that Maria Vullo, former Superintendent of the New York State Department of Financial Services, abused the power of her position to punish the gun rights organization for its political positions.

“Vullo met with executives at Lloyd’s of London to discuss her views on gun control and to tell them she believed the company’s underwriting of NRA-endorsed insurance policies raised regulatory issues,” according to Abby Smith of the Foundation for Individual Rights and Expression (FIRE). “She told them Lloyd’s could ‘avoid liability’but only if the company told its syndicates to stop underwriting their insurance policies, and joined her agency’s ‘campaign against gun groups.'”

There was nothing subtle about the arm-twisting. In 2018 I wrote about guidance letters New York regulators sent to banks and insurance companies, at the behest of then-Gov. Andrew Cuomo, cautioning “regulated institutions to review any relationships they have with the NRA or similar gun promotion organizations, and to take prompt actions to managing these risks and promote public health and safety.” Given that insurance companies and banks are tightly regulated and operate largely at the pleasure of state officials, this would logically be interpreted as a threat. Subsequently, banks and insurance companies alike cut ties with the NRA.

“New York, if these facts are true, tried to circumvent the First Amendment’s ban on censorship by relying on this informal pressure campaign,” noted FIRE’s Smith. “But informal censorship violates the First Amendment, too.” Extra-Legal Threats Violate Individual Rights Protections, Say the Courts

Such informal censorship is known as “jawboning” since, as the Cato Institute’s Will Duffield wrote in 2022, it involves “bullying, threatening, and cajoling” in the place of formal legal action.

“Jawboning occurs when a government official threatens to use his or her powerbe it the power to prosecute, regulate, or legislateto compel someone to take actions that the state official cannot,” observed Duffield. “Jawboning is dangerous because it allows government officials to assume powers not granted to them by law.”

Despite formal protections for individual liberties, such as the First Amendment, the vast regulatory power wielded by government agencies in the United States is easily weaponized against people who don’t do the government’s bidding. Such abuses aren’t hypothetical but are a matter of public record already addressed by the courts.

“People do not lightly disregard public officers’ thinly veiled threats to institute criminal proceedings against them if they do not come around,” the U.S. Supreme Court recognized in Bantam Books v. Sullivan (1963). That case involved Rhode Island officials hassling booksellers to refrain from stocking allegedly obscene publications. The implied threats and constant nagging of booksellers by state officials “was in fact a scheme of state censorship effectuated by extra-legal sanctions,” ruled the court.

Does “a scheme of state censorship effectuated by extra-legal sanctions” better describe the situation in the Murthy case or in the NRA case? Well, Monday was a twofer day, so why not both? A Strong Case Against New York’s Jawboning

In truth, New York regulators’ threats to insurance companies and banks that do business with the NRA and other gun groups were so overt that even commenters hostile to the NRA and self-defense rights concede that state officials went way over the line.

“Every now and then, the Supreme Court takes up a case involving a public official who acted so foolishly…that you wish the justices could each take turns smacking them upside the head,” Vox’s Ian Millhiser, no fan of the NRA, conceded last November. “National Rifle Association v. Vullo, which the Court announced that it would hear last Friday, is such a case.”

And so far, while it’s uncertain which way the justices will jump in Murthy, the court seems inclined to agree that it’s impermissible for government officials to use regulatory threats to coerce financial firms into cutting ties with disfavored political organizations.

“The Supreme Court on Monday appeared sympathetic to the National Rifle Association’s claim that a New York official violated the group’s right to freedom of speech when she urged banks and insurance companies that worked with the NRA to cut ties with the group,” SCOTUSblog’s Amy Howe concluded. ACLU Legal Director David Cole “closed by telling the justices that ‘the notion that this is business as usual, for a government official to speak with a private party and say we’ll go easy on you if you aid my campaign to weaken the NRA. That is not business as usual. That is not ordinary plea negotiation.’ Although it was not entirely clear, a majority of the justices seemed to agree with him.”

With government reaching ever further into American life, it’s time the court reminds officials, once again, that their intrusive powers aren’t supposed to be used to bypass protections for individual rights.

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Science

Germany to Send First European Astronaut Around the Moon on Artemis Mission

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Europe has secured its first astronaut seat to orbit the Moon through NASA’s Artemis program, marking a historic milestone for ESA. Director General Josef Aschbacher confirmed that a German astronaut will take the inaugural European lunar-orbit mission, enabled by Europe’s contributions to Orion’s service module and the Lunar Gateway. Veteran astronauts Matthias…

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Politics

Lawmakers stumble on stablecoin terms as US Congress grills Fed’s Bowman

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Lawmakers stumble on stablecoin terms as US Congress grills Fed’s Bowman

US Representative Stephen Lynch pressed Federal Reserve Vice Chair Michelle Bowman on Tuesday over her past remarks encouraging banks to “engage fully” with digital assets, questioning the Fed’s role in advancing crypto frameworks while showing confusion over the definition of stablecoins.

In a Tuesday oversight hearing, Lynch asked Bowman, the Fed vice chair for supervision, about remarks she had made at the Santander International Banking Conference in November. According to the congressman, Bowman said she supported banks “[engaging] fully” with respect to digital assets.

However, according to Bowman’s comments at the conference, she referred to “digital assets” rather than specifically cryptocurrencies. The questioning turned into Lynch asking Bowman about distinctions between digital assets and stablecoins.

The Fed official said that the central bank had been authorized by Congress — specifically, the GENIUS Act, a bill aimed at regulating payment stablecoins — to explore a framework for digital assets.

“The GENIUS Act requires us to promulgate regulations to allow these types of activities,” said Bowman.

Cryptocurrencies, Federal Reserve, Law, Congress, Stablecoin
Representative Stephen Lynch at Tuesday’s oversight hearing. Source: House Financial Services Committee

While the price of many cryptocurrencies can be volatile, stablecoins, like those pegged to the US dollar, are generally “stable,” as the name suggests. Though there have been instances where some coins have depegged from their respective currencies, such as the crash of Terra’s algorithmic stablecoin in 2022, the overwhelming majority of stablecoins rarely fluctuate past 1% of their peg.

Related: Atkins says SEC has ‘enough authority’ to drive crypto rules forward in 2026

Bowman said in August that staff at the Fed should be permitted to hold small “amounts of crypto or other types of digital assets” to gain an understanding of the technology.

FDIC acting chair says stablecoin framework is coming soon

Also testifying at the Tuesday hearing was Travis Hill, acting chair of the Federal Deposit Insurance Corporation. The government agency is one of many responsible for implementing the GENIUS Act, which US President Donald Trump signed into law in July.

According to Hill, the FDIC will propose a stablecoin framework “later this month,” which will include requirements for supervising issuers.