Yesterday's Senate Armed Services hearing on the U.S. Cyber Command became the stage for a showdown between two competing visions for who should be in charge of protecting private sector networks from a cyber attack, according to a report from CQ's Tim Starks. On one side was Homeland Security Chairman Joe Lieberman, I-Conn., who has introduced legislation (S 2105) that would put the Department of Homeland Security in charge of writing and implementing new security standards for the sectors deemed most crucial to national security. On the other side sat his good friend John McCain, R-Ariz., whose competing bill (S 2151), includes no such regulations and would designate the National Security Agency and Cyber Command to serve as a hub for information sharing between businesses and the federal government.
Both sides used NSA and Cyber Command chief Gen. Keith B. Alexander as a proxy, pressing him to express support for their cases. But according to the transcript, Alexander was reluctant to step out of line with the White House's position. Alexander endorsed the White House's cybersecurity proposal from last year, which omitted language that would allow NSA to monitor private networks and set up defenses against malware. He also endorsed the need for federal security standards for critical infrastructure providers under questioning from Lieberman, and said information sharing alone would not be enough to protect against the growing cyber threat. His statements prompted the sponsors of the Lieberman-Collins-Rockefeller bill to claim the hearing as a victory for their approach.
IPO Bill Headed to White House: CQ's Charlene Carter reports legislation that would ease securities regulations for small businesses cleared the House on Tuesday and is headed to President Obama's desk for a signature. The bill, which first passed the House earlier this month and cleared the Senate last week, would make it easier for small companies to issue securities and raise the number of shareholders that triggers mandatory SEC reporting. The House voted 380-41 on Tuesday to approve a Senate amendment to the bill, which restricts the bill's crowdfunding provision by requiring anyone acting as a crowdfunding intermediary to register with securities regulators. Obama has expressed support for the bill, which both sides have touted as a job-creation measure. House Backs FCC Overhaul: CQ's Anne Kim reports the House passed legislation (HR 3309) on Tuesday that would overhaul how the Federal Communications Commission does business and make it more difficult for the agency to issue new regulations. The vote was 247-174. Sponsor Greg Walden, R-Ore., said the legislation would bring accountability and transparency to the FCC, and he argued that the agency frequently issues decisions before giving the public a chance to review the text of regulations. Walden also has said the FCC over-reaches on its authority to review mergers by placing unrelated conditions on the transactions; the bill would limit the types of conditions the agency can set. The Senate Commerce Committee is not expected to take up the legislation.House Democrats argued the bill would hurt the FCC's ability to protect the public interest and would create lengthy procedural delays. For major regulations, the FCC would have to identify a specific market failure or a barrier to entry before commencing rule-making, and then perform a cost-benefit analysis to justify the new rules. The House accepted several amendments, including one from Mario Diaz-Balart, R-Fla., that would require the FCC to release its decisions on granting or denying Freedom of Information Act (FOIA) requests.
New FISMA Bill in the House: House Oversight Chairman Darrell Issa, R-Calif., and ranking Democrat Elijah Cummings of Maryland introduced a new bill yesterday (HR 4257) that would overhaul the Federal Information Security Management Act (FISMA), which governs how the civilian federal agencies protect their networks. The law has been frequently criticized for its focus on compliance rather than actively deterring cyberthreats. Several efforts to overhaul FISMA have been introduced in recent years and garnered bipartisan support, but the legislation has been held back in hopes of including it as part of a comprehensive cybersecurity bill. Both of the prominent cybersecurity bills in the Senate include some form of FISMA reform, but the House has indicated a preference to tackle cybersecurity in piecemeal fashion. Issa and Cummings' bill is currently available in its draft form on Issa's MADISON platform, designed to give the public input on legislation as it is being written. House Panel Approves Internet Censorship Bill: CQ's Elham Khatami reports the House Foreign Affairs Subcommittee on Africa, Global Health and Human Rights approved a measure on Tuesday that would ban U.S. firms from selling digital censorship or surveillance technology to governments that restrict their citizens' access to the Internet. The bill is aimed at countries such as Iran and China, which monitor Web traffic and social media sites for signs of social unrest or political opposition, but it has drawn resistance from the technology industry. EU Panel Approves Data-Sharing Agreement With U.S.: CQ's Chad Brand reports a European Parliament Committee approved a proposal this week that would allow the U.S. and Europe to exchange information about air travelers. A divided panel approved revising a 2007 pact between the two sides that governs the sharing of passenger information such as travel dates, contact details and means of payment. One of the proposal's most vocal opponents, Dutch member Sophie in 't Veld, reiterated concerns the U.S. would be able to circumvent the agreement's privacy protections by obtaining the data directly from U.S. airlines via the Patriot Act. Veld also accused the U.S. of applying political pressure to her colleagues by making it clear a rejection would result in the suspension of visa-free travel to the U.S. On the Move: The Small Business Association has hired Eric Won as chief information officer. He previously served as chief technologist in the office of governmentwide policy at the General Services Administration. Quotable: "We're not winning." — The FBI's top cyber cop Shawn Henry, who is preparing to leave the FBI after two decades to take a private cybersecurity job in Washington, via the Wall Street Journal.