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The logo of TP-Link appears on the products of router manufacturer TP-Link in Fuyang, China, on December 19, 2024. (Photo by Costfoto/NurPhoto via Getty Images)

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While the TikTok ban has lawmakers scurrying and chatter about Chinese influence over U.S. tech at a fever pitch, another danger is lurking. One of Amazon’s top-selling router brands, TP-Link, has been under scrutiny by regulators as posing a threat to American infrastructure. Experts worry that China could exploit the routers to launch attacks on critical infrastructure or steal sensitive information.

Rep. Raja Krishnamoorthi (D-IL) and Rep. John Moolenaar (R-MI) sent a letter to the U.S. Department of Commerce last summer, touching off a flurry of investigations and calls for a ban. The letter, which the Wall Street Journal first reported, flagged “unusual vulnerabilities” and required compliance with PRC law as disconcerting. “When combined with the PRC government’s everyday use of SOHO [small office/home office] routers like TP-Link to perpetrate extensive cyberattacks in the United States, it becomes significantly alarming,” the letter stated.

But so far, no action has been taken, and Krishnamoorthi is concerned.

“I am not aware of any plans to get them out,” Krishnamoorthi said. He pointed to the government’s “rip and replace” plan with Huawei network equipment as a precedent that could be followed. The government mandated in 2020 that companies rid themselves of Huawei equipment, which was deemed to pose a national security threat. Efforts to remove the equipment are still ongoing.  

According to data he cited, TP-Link has a 65% share of the U.S. router market, and its success has followed a similar playbook used by China with other technology: make a lot more than they need, export the surplus to undercut the competition, and use the technology to backdoor access or to disrupt.

“I am wondering whether something similar needs to be done, at least in regards to national security agencies, Department of Defense, and Intelligence,” Krishnamoorthi said. “It just doesn’t make sense for the U.S government to be buying the routers.”

The routers were among brands in the market linked to hacks on European officials and the Typhoon Volt attacks.

An Amazon best seller inside our online histories

Krishnamoorthi’s concerns go beyond the federal government. State and local utilities that have them could be vulnerable, he said, as well as people who have the routers at home.

“The PRC has every intent to collect this data on Americans and they will, why give them another backdoor?” Krishnamoorthi said.

Browsing history, and family and employer information, are all at risk.

“I would not buy a TP-Link router, and I would not have that in my home,” he added, and noted that he never had TikTok on his phone.

Ranking member Raja Krishnamoorthi (D-IL) participates in the first hearing of the U.S. House Select Committee on Strategic Competition between the United States and the Chinese Communist Party, in the Cannon House Office Building on February 28, 2023 in Washington, DC. The committee is investigating economic, technological and security competition between the U.S. and China. 

Kevin Dietsch | Getty Images News | Getty Images

There are multiple versions of TP-Link routers available on Amazon, with one labeled a “best seller” retailing for $71. Amazon did not respond to questions about whether it planned to pull the routers.

A spokesman for the majority of the Select Committee on the Chinese Communist Party, chaired by Moolenar, told CNBC the TP-Link routers pose an espionage risk to Americans because the company is beholden to the Chinese government, who are engaged in a full-scale hacking campaign against the United States and our people. “Because of this, we hope to see TP-link routers banned in the coming year, coupled with programs to replace existing Chinese routers with safe American alternatives.”

TP-Link Technologies has said in response to the accusations that it does not sell router products in the U.S. and denied its routers have any cybersecurity vulnerabilities. TP-Link Systems, which recently built a new headquarters for the U.S. market in Irvine, California, has had operations in the state since 2023, and says it is a separate company with separate ownership, and most of the routers made for the U.S. market come from Vietnam.

“TP-Link Systems is proactively seeking opportunities to engage with the federal government to demonstrate the effectiveness of our security practices and to demonstrate our ongoing commitment to the American market, American consumers and addressing U.S. national security risks,” the company told the Orange County Business Journal earlier this month.

The People’s Republic of China’s ministry in the United States did not respond to a request for comment.

The problem of unencrypted communication

A consensus on the best way to combat the problem, and enact a ban, remains elusive, given how widespread use of the routers already is within U.S consumer and business markets.

Guy Segal, vice president of corporate development at cybersecurity services company Sygnia, said in addition to TP-Link router prevalence in government institutions, including defense organizations, the company has the majority of the U.S. market in routers for homes and small businesses.

“The pervasiveness of this technology and the potential risks associated with it do present security concerns for users that should be taken seriously, whether at the consumer level or a national security consideration for government entities,” he said.

If a ban is to come, it is more likely going to be spurred by the national security concerns, and the implications the routers could have on military readiness and national security, than the risk to home internet consumers. Segal said if momentum for a ban picks up inside the government, the action would have to be implemented in phases, given the ubiquity of the TP-Link router. The most practical approach would be to start by banning use in the federal and defense sectors.

CrowdStrike Co-Founder: TikTok security threats are 'mostly theoretical' for now

The letter from the Congressional group to Commerce last summer cited a PRC government that has demonstrated a willingness to sponsor hacking campaigns using PRC-affiliated SOHO routers, “particularly those offered by the world’s largest manufacturer, TP-Link — and consider using its ICTS authorities to properly mitigate this glaring national security issue.” 

Matt Radolec, vice president of incident response and cloud operations at security company Varonis, says that the government is on the right track, and consumers should not ignore the issue even if the threat of a ban on home devices may not be imminent. “Banning routers from certain manufacturers is a sound security decision,” Radolec said. “Consumers, in general, should be aware of the implications to their personal privacy.”

The underlying problem with the TP-Link routers, he said, is unencrypted communication, and it is an issue where the public is underinformed.

“All unencrypted communications on these routers could be compromised, which is worrisome because intra-network communication is often unencrypted for performance’s sake. You’ll get faster internet speeds, but you could be risking your personal data,” Radolec said. 

Even if banking information, for instance, is encrypted, that wouldn’t protect all the unprotected personal data that passes through an unprotected, vulnerable home router.

“It’s time for the general public to be aware of the differences between encrypted and unencrypted communications, and browser and device manufacturers must do a better job informing the public about the privacy risks when you send your data over unencrypted links,” Radolec said. “I think we need to ask ourselves, as consumers, is that something we want to be potentially exposed to?”  

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Tesla owners are trading in their EVs at record levels, Edmunds says

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Tesla owners are trading in their EVs at record levels, Edmunds says

A Tesla store in Alhambra, California on March 11, 2025.

Frederic J. Brown | AFP | Getty Images

As Elon Musk wraps up his second month in the White House, Tesla owners are trading in their electric vehicles at record levels, according to an analysis by national car shopping site Edmunds.

The data from Edmunds published on Thursday said that March represented “the highest ever share” it had seen for Tesla trade-ins toward new or used cars from dealerships selling other brands.

Since heading to Washington, D.C. in January as a central figure in the second Trump administration, Musk has been slashing the federal workforce and government spending, and has gained access to sensitive government computer systems and data, though his efforts have been repeatedly challenged in court.

Prior to assuming leadership of the Department of Government Efficiency (DOGE), Musk spent around $290 million last year to help propel President Donald Trump back to the White House.

While investors snapped up Tesla shares after Trump’s victory in November, they’ve been rushing for the exits of late, pushing the stock’s price down by 42% this year. Waves of protests have targeted Tesla facilities in the U.S. and beyond. Other criminal acts of vandalism and arson have targeted Tesla stores, vehicles and charging stations across the U.S.

In addition, Tesla is facing increased competition from EV makers. In January, S&P Global Mobility found Tesla sales declined about 11% year-over-year in the U.S., while Ford, Chevrolet and Volkswagen bolstered their sales of EVs, picking up market share.

“Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground,” Jessica Caldwell, head of insights at Edmunds, wrote in an email. “As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”

The Tesla brand, more than that of any other automaker, is tightly tied to its CEO. In August 2024, Edmunds surveys found that just 2% of car shoppers in the U.S. were unfamiliar with Musk.

Edmunds also said that shopping for new models of Tesla vehicles on its platform dropped to its lowest level last month since October 2022 after peaking as late as November.

Even before Musk began heading up DOGE, Tesla’s brand was suffering. Its brand value fell by 26%, or about $15 billion, in 2024, a second straight annual decline, according to research and consulting firm Brand Finance.

Many car shoppers trade in their Tesla EVs for a newer model Tesla. Edmunds data didn’t account for those transactions.

Tesla didn’t immediately respond to a request for comment.

WATCH: Tesla’s core issues more detrimental than short-term political headwinds

Tesla's core issues more detrimental than short-term political headwinds: Wells Fargo's Langan

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Micron shares jump on earnings beat, rosy guidance as data center revenue triples

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Micron shares jump on earnings beat, rosy guidance as data center revenue triples

Signage outside the Micron offices in San Jose, California, on Dec. 17, 2024.

David Paul Morris | Bloomberg | Getty Images

Micron shares popped 6% in extended trading Thursday after the company reported second-quarter results that beat analysts’ estimates and offered better-than-expected guidance.

Here’s how the company did:

  • Earnings per share: $1.56, adjusted vs. $1.42 expected by LSEG
  • Revenue: $8.05 billion vs. $7.89 billion expected by LSEG

Revenue increased 38% from $5.82 billion during the same period in 2024, Micron said in a press release. The memory and storage solutions company reported net income of $1.58 billion, or $1.41 per share, up from $793 million, or 71 cents per share, in the year-ago quarter.

Data center revenue tripled, the company said.

Revenue for the fiscal third quarter will be about $8.8 billion, Micron said, topping the $8.5 billion average analyst estimate, according to LSEG. Adjusted earnings will be roughly $1.57 a share, the company said, beating the $1.47 average estimate.

Prior to Thursday’s close, Micron shares were up 22% for the year, while the Nasdaq is down more than 8%.

Micron will host its quarterly call with investors at 4:30 p.m. ET.

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BlackRock’s head of digital assets says staking could be a ‘huge step change’ for ether ETFs

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BlackRock’s head of digital assets says staking could be a ‘huge step change’ for ether ETFs

Omar Marques | Lightrocket | Getty Images

Appetite for ether ETFs has been tepid since their launch last July, but that could change if some of the regulatory wrinkles holding them back get “resolved,” according to Robert Mitchnick, head of digital assets at BlackRock.

There’s a widely held view that the success of ether ETFs has been “meh” compared to the explosive growth in funds tracking bitcoin, Mitchnick said at the Digital Asset Summit in New York City Thursday. Though he sees that as a “misconception,” he acknowledged that the inability to earn a staking yield on the funds is likely one thing holding them back.

“There’s obviously a next phase in the potential evolution of [ether ETFs],” he said. “An ETF, it’s turned out, has been a really, really compelling vehicle through which to hold bitcoin for lots of different investor types. There’s no question it’s less perfect for ETH today without staking. A staking yield is a meaningful part of how you can generate investment return in this space, and all the [ether] ETFs at launch did not have staking.”

Staking is a way for investors to earn passive yield on their cryptocurrency holdings by locking tokens up on the network for a period of time. It allows investors to put their crypto to work if they’re not planning to sell it anytime soon.

But Mitchnick doesn’t expect a simple fix.

“It’s not a particularly easy problem,” he explained. “It’s not as simple as … a new administration just green-lighting something and then boom, we’re all good, off to the races. There are a lot of fairly complex challenges that have to be figured out, but if that can get figured out, then it’s going to be sort of a step change upward in terms of what we see the activity around those products is.”

The Securities and Exchange Commission has historically viewed some staking services as potential unregistered securities offerings under the Howey Test – which is used to determine whether an asset is an investment contract and therefore, a security. But a more crypto friendly SEC is moving swiftly to reverse the damage done to the industry under the previous regime. Its newly formed crypto task force is scheduled to kick off a roundtable series Friday focused on defining the security status of digital assets.

Ether has been one of the most beaten up cryptocurrencies in recent months. It’s down more than 40% year to date as it has struggled with conflicting and difficult-to-comprehend narratives, weaker revenue since its last big technical upgrade and increasing competition from Solana. Standard Chartered this week slashed its price target on the coin by more than half.

Mitchnick said the negativity is “overdone.”

“ETH … at the second grade level is easier to define … but at the 10th grade level is a lot harder,” he said. “Second grade level: it’s a technology innovation story. … Beyond that, it does get a little more vast, a little more complicated. It’s about being a bet on blockchain adoption and innovation. That’s part of the thesis as we communicate it to clients.”

“There are three [use cases] that we focus on that have a lot of resonance with our client base: it’s a bet to some extent on tokenization, on stablecoin adoption, and on decentralized financing,” he added. “It does take a fair bit of education, and we’ve been on that journey, but it’s going to take more time.”

BlackRock is the issuer of the iShares Ethereum Trust ETF. It also has a tokenized money market fund, known as BUIDL, which it initially launched a year ago on Ethereum and has since expanded to several other networks including Aptos and Polygon.

Don’t miss these cryptocurrency insights from CNBC Pro:

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