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2018年1月8日 星期一

Overnight Cybersecurity: NSA director expected to retire | Lawmakers return to surveillance fight | Trump officials release report on botnets

 
 
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Welcome to OVERNIGHT CYBERSECURITY, your daily rundown of the biggest news in the world of hacking and data privacy. We're here to connect the dots as leaders in government, policy and industry try to counter the rise in cyber threats. What lies ahead for Congress, the administration and the latest company under siege? Whether you're a consumer, a techie or a D.C. lifer, we're here to give you ...

 

THE BIG STORIES:

--NSA DIRECTOR EXPECTED TO RETIRE: National Security Agency Director Mike Rogers is expected to retire in the spring, according to multiple reports. Rogers, who currently serves in the dual-hat leadership role as NSA director and commander of Cyber Command, reportedly told NSA staff of his plans to retire in a classified memo on Friday. Rogers was nominated by President Barack Obama in 2014 to replace Keith Alexander, arriving at a time when the agency continued to receive fierce blowback as a result of the disclosures from former contractor Edward Snowden. Rogers has managed a sometimes-criticized reorganization of the agency during his four-year tenure. The agency has also had to contend with embarrassing leaks of its cyber tools by hacker group ShadowBrokers. News of Rogers' impending retirement comes months after President Trump decided to elevate Cyber Command, triggering a review of whether and when it should be ultimately split from NSA. That move had some in Washington talking about Rogers' future back in August. When contacted, the NSA would not comment on reports about Rogers' plans to depart on Friday. 

--INTEL FACES CLASS ACTION SUITS: Intel is facing at least three class-action lawsuits over massive security vulnerabilities in its computer chips that came to light this week. The lawsuits were filed in California, Oregon and Indiana, according The Guardian. The three cases focus on the delay in Intel disclosing the Meltdown and Spectre cyber-flaws, which make it and others firms' chips vulnerable to hackers. The company was first notified of the two vulnerabilities in June 2016, but did not publicly disclose them until last week after researchers brought them forward. The company said it had planned to make vulnerabilities public the following week. The lawsuits also allege that the patches to fix the vulnerabilities will cause computers to operate more slowly. Intel has disputed that claim, saying in a statement, "Contrary to some reports, any performance impacts are workload-dependent, and, for the average computer user, should not be significant and will be mitigated over time." Legal experts believe that more lawsuits over the vulnerabilities will follow.

To read the rest of our piece, click here.

--HOMELAND SECURITY ISSUES NEW GUIDELINES FOR DIGITAL DEVICE SEARCHES: Under updated guidelines, border agents must have "reasonable suspicion" of violations of law to conduct exhaustive forensic searches of smartphones, tablets and other electronic devices belonging to individuals entering and exiting the United States. Customs and Border Protection (CBP) on Friday issued the updated guidelines for searches of electronic devices at the U.S. border, which contain new restrictions on the circumstances under which officials can conduct what are called "advanced" searches. In those searches, agents connect external equipment to a device in order to analyze or copy its contents. According to the new directive, agents need to demonstrate reasonable suspicion of criminal wrongdoing or otherwise show that there is a "national security concern" in order to conduct advanced searches. Border agents are still allowed to manually search through devices -- which could involve sifting through photos, browsing histories or messages -- "with or without suspicion," in what are called basic searches. Sen. Ron Wyden (D-Ore.), who has clamored for more restrictions on digital device searches, described the new restrictions as an improvement but reiterated that a warrant should be required for searches on devices belonging to U.S. citizens.

To read the rest of our piece, click here.

 

A LEGISLATIVE UPDATE: 

TRYING AGAIN ON 702: Lawmakers are again poised to take up the issue of passing legislation to reauthorize Section 702 of the Foreign Intelligence Surveillance Act (FISA), a controversial provision that allows the intelligence community to collect data on non-Americans outside the United States without a warrant.

Privacy-minded lawmakers and civil liberties groups have been pushing for restrictions on the program, which was poised to sunset at the end of 2017. Congress passed a short-term budget that extended the provision until Jan. 19, when the government will run out of money.

The House Rules Committee is scheduled to take up legislation reauthorizing the program on Tuesday afternoon. The issue has been a hot topic in Washington, as multiple congressional committees have put forth their own iterations of the bill. The Trump administration, meanwhile, has been pushing for a clean reauthorization, describing the program as a critical national security tool.

 

A LIGHTER CLICK:

An alternative take on Meltdown and Spectre.

 

A REPORT IN FOCUS: 

CRYPTOCURRENCY BEING ROUTED TO NORTH KOREA: A U.S.-based cybersecurity firm has uncovered malware apparently being used to mine the Monero cryptocurrency and send it to a university in North Korea.

Cyber firm AlienVault released an analysis of the malware on Monday, saying that it installs software on victim computers that instructs them to perform complex computational tasks to "mine" Monero. The mined currency is then sent to a server located at Kim Il Sung University in Pyongyang.

The revelation could point to an effort by those in North Korea to find an alternative stream of revenue as the country finds its economy squeezed by international sanctions imposed over its nuclear and ballistic missile program.

"Crypto-currencies could provide a financial lifeline to a country hit hard by sanctions. Therefore it's not surprising that universities in North Korea have shown a clear interest in cryptocurrencies," AlienVault said Monday.

"Recently the Pyongyang University of Science and Technology invited foreign experts to lecture on crypto-currencies. The Installer we've analysed above may be the most recent product of their endeavours," the California-based computer security firm continued.

AlienVault noted, however, that the server in question is not connected to the wider internet and may be set up to "trick" security researchers into believing that the profits are being sent to North Korea.

Despite Pyongyang's isolation from the global stage, the university does host some international students and professors, meaning that the malware's author may not necessarily be North Korean.

Digital currencies like Monero have risen in popularity in recent years, particularly among cyber criminals looking to hide their tracks. Monero claims to be "untraceable," making it a popular payment choice for malware operators and other cyber criminals.

To read the rest of our piece, click here.

 

WHAT'S IN THE SPOTLIGHT: 

BOTNETS: The Trump administration has released a long-awaited report on combating the threat of botnets. It calls for more efforts across the government, industry, and international communities to take down the cyber armies.

Botnets are a group of internet-connected devices leveraged to commit distributed denial of service (DDoS) and other cyberattacks. The threat gained broad attention with the denial of service attack on web services provider Dyn that took down popular websites like Twitter and Tumblr in October 2016.

The Departments of Commerce and Homeland Security issued the draft report, which was mandated by Trump's cybersecurity executive order, on Friday, opening it up to industry for public comment.

The report outlines a number of proposed goals for the public and private sectors --including Internet service providers and technology manufacturers -- to better tackle the threat. It emphasizes the "urgent need for coordination and collaboration" across stakeholder communities.

Among the observations, it notes the need for better market incentives to get tech manufacturers to focus on building security into their products, rather than rushing them to market.

The report is open for public comments until Feb. 12, 2018, which will be considered as the departments complete a final report to be delivered to President Trump by May 11.

"No single investment or activity can mitigate all harms, but organized discussions and stakeholder feedback will allow us to further evaluate and prioritize these activities based on their expected return on investment and ability to measurably impact ecosystem resilience," the report states.  

"As we release this draft report for public comment, we look to stakeholders to help us refine the value, utility, and investment potential of the proposed activities, the opportunities for support and leadership, and impediments to implementation."

To read the full draft report, click here.

 

IN CASE YOU MISSED IT:

Links from our blog, The Hill, and around the Web.

Experts say US should expect more Iranian cyberattacks. (The Hill)

Florida officials: Hack exposed 30K Medicaid patients' files. (The Hill)

Hackers are targeting South Koreans involved in the Winter Olympics, according to cyber firm McAfee. (The Hill)

Twitter allows apparent phishing scam to buy promoted tweet. (The Hill)

The Aspen Institute launched a cybersecurity group, featuring Rep. Will Hurd (R-Texas). (Axios)

cyber unit has been activated in Battle Creek, Michigan. (Battle Creek Inquirer)

CIA director says Russia and other nations are attempting to undermine U.S. elections. (Reuters)

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Overnight Health Care: House Dems sound alarm over HHS pick | Trump takes new tack to weaken ObamaCare | Koch-backed groups push to ease access to experimental drugs — Presented by the Association of American Medical Colleges

 
 
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A group of House Democrats want the Senate Finance Committee to question President Trump's nominee for Health and Human Services secretary about high drug prices at his former employer, Eli Lilly.

In a letter to Finance Committee leaders, led by Texas Reps. Beto O'Rourke and Lloyd Doggett, the Democrats also said Alex Azar should be pressed on his commitment to uphold the Affordable Care Act, otherwise known as ObamaCare.

Azar is scheduled to appear before the Senate Finance Committee for a confirmation hearing on Tuesday.

This won't be the first time in the hot seat for Azar, who faced the Senate Health Committee last month in what was billed as a courtesy hearing. But this time he'll be before the Finance Committee, which will make the decision about whether to send his nomination to the Senate floor.

Democrats are expected to question Azar on how he would lower the cost of prescription drugs, given his background as a former pharmaceutical executive. They also want to hear his views on a variety of other issues, including ObamaCare, block grants for Medicaid and women's health.

Azar worked at the pharmaceutical company Eli Lilly for nearly a decade, serving most recently as the president of Lilly USA, a post he left last January.

The company reportedly substantially increased the price of insulin while Azar was there, from $123 per vial in 2012 to $255 per vial in 2017.

Read more here.

 
 
 
 

Pro-ACA group urges 'no' vote on Trump health nominee

A leading pro-ObamaCare group is urging senators to vote "no" on President Trump's Health and Human Services secretary nominee, saying he will continue a campaign of "sabotage" against the health law.

The group, Protect Our Care, unveiled a digital ad that urges lawmakers to oppose the nominee, Alex Azar.

"President Trump and Republicans in Congress are in search of a new leader for their war effort to captain their repeal and sabotage campaign, and in a former pharmaceutical executive they have found their man," the ad states. "Alex Azar is ready to lead the Republican war on health care into its second year."

Protect Our Care pointed to administration actions like cutting the outreach budget for ObamaCare enrollment and cutting off key payments to insurers as evidence of efforts to sabotage the law.

Read more here.

 

Trump takes new tack to weaken ObamaCare

The Trump administration is turning to regulations as their last, best hope of chipping away at ObamaCare in 2018, with congressional Republicans unlikely to pass full repeal.

A proposed rule released Thursday targeting the health law is likely the first step in a new effort to undermine the law. And advocates for ObamaCare worry that another forthcoming rule could cause even more damage.

The administration on Thursday eased rules on small businesses that band together to buy health insurance through what are known as association health plans (AHPs).

The proposal retains ObamaCare protections for people with pre-existing conditions and prohibits lifetime limits on benefits.

But it would allow associations to purchase cheaper health insurance that won't cover the ten "essential health benefits," which include mental health, substance abuse treatment, maternity care and prescription drugs.

A second proposed rule on short-term insurance plans, yet to be unveiled, could have an even greater impact, with much broader exemptions from ObamaCare.

Read more here.

 

Koch-backed groups launch 'Right to Try' campaign 

Koch brothers-backed groups are launching a campaign urging Congress to pass legislation allowing terminally ill patients to request access to experimental drugs the Food and Drug Administration (FDA) hasn't approved.

Nearly 40 states have this law, known as "Right to Try," already on their books. But Freedom Partners, in partnership with Americans for Prosperity -- two groups funded in part by billionaire brothers Charles and David Koch -- say federal legislation is needed to assuage patient fears that the federal government will override state laws.

The new push, launched Monday, consists of a lobbying effort, 30- and six-second digital ads, a social media effort and more.

The groups also sent a letter to House Energy and Commerce Chairman Greg Walden (R-Ore.) urging him to prioritize passing the bill out of his committee and sending it to the full House for a vote. In August, the measure passed the Senate by unanimous consent.

Read more here.

 

Pfizer ends research into new Alzheimer's, Parkinson's drugs 

Drug giant Pfizer will end research into new neuroscience drugs, including those for Alzheimer's disease and Parkinson's disease, the company announced this weekend. 

That decision followed an internal review and will result in about 300 jobs cut, the company said. 

"This was an exercise to reallocate [spending] across our portfolio, to focus on those areas where our pipeline, and our scientific expertise, is strongest," Pfizer said in a statement. 

Read more here.

 
 
 
 
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What we're reading: 

America's home nurse shortage is stranding kids in hospitals (Bloomberg)

Hospitals wrestle with shortage of IV bags, linked to hurricane (The Wall Street Journal)

Care suffers as more nursing homes feed money into corporate webs (Kaiser Health News)

 

State by state

In states that didn't expand Medicaid, hospital closures have spiked (Stat)

Florida officials: Hack exposed personal information of up to 30,000 Medicaid patients (Associated Press)

Privatized Medicaid saving Iowa less than predicted (Associated Press)

 

From The Hill's opinion page: 

This West Virginia initiative is a model solution to the national opioid crisis

 
 

Send tips and comments to Jessie Hellmann, jhellmann@thehill.com; Peter Sullivan, psullivan@thehill.com; Rachel Roubein, rroubein@thehill.com; and Nathaniel Weixel, nweixel@thehill.com.

Follow us on Twitter: @thehill@jessiehellmann@PeterSullivan4@rachel_roubein, and @NateWeixel.

 
 
 
 
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Overnight Regulation: Regulators kill Perry plan to help coal, nuke plants | Senate Dems to force net neutrality vote | Maine senators oppose offshore drilling plan | SEC halts trading in digital currency firm

 
 
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Welcome to Overnight Regulation, your daily rundown of news from the federal agencies, Capitol Hill, the courts and beyond. It's Monday evening and both the House and Senate are both back in session after a slow start to 2018. And they have a lot to work on in the coming weeks: immigration, spending, children's health, and the debt ceiling, just to name a few.

 

THE BIG STORY: The Federal Energy Regulatory Commission (FERC) Monday rejected Energy Secretary Rick Perry's proposal to prop up coal and nuclear power plants.

In a unanimous order, the five-person commission said Perry and supporters of the proposal failed to show that current electricity markets are not just or reasonable, findings necessary to mandate the higher electricity payments Perry sought.

"Neither the Proposed Rule nor the record in this proceeding has satisfied the threshold statutory requirement of demonstrating that the [grid] tariffs are unjust and unreasonable," the commission wrote.

Background... Perry's proposal would have required certain grid operators to pay power producers for their costs plus a reasonable profit, if the power plant at issue has at least 90 days of fuel on site -- a standard only coal and nuclear could meet.

Supporters said coal and nuclear plant closures, which have been increasing in recent years due to cheap competition and regulations, threatened to make the electric grid less resilient and more prone to blackouts. Critics called it a political move to boost power sources the administration favors.

Winners, losers... The rejection is a major victory for natural gas, wind, solar and other industries that compete with coal and nuclear. They joined with conservative activists, environmentalists, grid experts, and big businesses to oppose the proposal.

But in a concession to coal and nuclear, FERC will formally ask electric grid operators what they are doing, if anything, to ensure their grids remain resilient, which was the goal of Perry's plan.

React... Perry said his proposal was intended to spark debate on a critical issue.

"As intended, my proposal initiated a national debate on the resiliency of our electric system," he said in a statement.

Timothy Cama has more here.

 

ON TAP FOR TUESDAY

The Senate Finance Committee holds a nomination hearing for Alex Azar, President Trump's pick to head the Department of Health and Human Services.

The Senate Banking Committee discusses efforts to combat money laundering and ways to strengthen the Bank Secrecy Act.

A House Financial Services subcommittee holds a hearing on the Committee on Foreign Investment in the U.S., titled "Evaluating CFIUS: Challenges posed by a changing global economy."

A House Energy and Commerce subcommittee holds a hearing on modernizing the Department of Energy.

A House Financial Services subcommittee holds a hearing on "legislative proposals for a more efficient federal financial regulatory regime."

The House Natural Resources Committee holds a hearing on legislation to lock in President Trump's move to reduce the size of the Bears Ears National Monument in Utah.

 

REG ROUNDUP

Tech: A Senate bill that would reverse the Federal Communications Commission's (FCC) decision to repeal net neutrality received its 30th co-sponsor on Monday, ensuring Democrats can force a vote on the Senate floor.

Sen. Claire McCaskill (D-Mo.) announced her support for the bill on Twitter, putting it over the top of a procedural requirement to bypass committee approval.

The bill, which is being pushed by Sen. Ed Markey (D-Mass.), would use Congress's authority under the Congressional Review Act (CRA) to reverse the FCC's rollback of its popular net neutrality rules.

"Republicans are faced with a choice -- be on the right side of history and stand with the American people who support a free and open internet, or hold hands with the special interests who want to control the internet for their own profit," Markey said in a statement.

With Republicans in control of both the House and Senate, the bill faces long odds, but Dems see a political edge in forcing GOP lawmakers to take a stand on net neutrality, which polls find popular with voters.

The Hill's Harper Neidig has the story here.

 

Also on the net neutrality front... Nebraska has become the first red state where lawmakers have introduced legislation to save the Obama-era internet rules. Ali Breland has the story.

 

Energy: Maine Sens. Susan Collins (R) and Angus King (I) on Monday expressed opposition to the Trump administration's plan to expand areas available for offshore drilling, citing environmental and economic concerns. 

"We oppose any effort to open waters off the coast of Maine or any proximate area to offshore drilling, which could negatively affect the health of Maine's fisheries and other coastal resources," the senators wrote in a letter to Interior Secretary Ryan Zinke. 

"So many of our key industries, from tourism and recreation to fishing, rely on healthy oceans. A single mistake could change that forever, rob our state of a key resource and permanently harm people across Maine," King added on Twitter. "The risk of a catastrophe far outweighs any benefits."

The Trump administration said last week it is proposing significantly expanding areas available for offshore oil and natural gas drilling, including areas off the Atlantic and Pacific coasts.

Brett Samuels has more here.

 

Finance: The Securities and Exchange Commission (SEC) on Monday halted trading of shares of a Chinese blockchain technology company.

The SEC froze the purchase and sale of shares of UBI Blockchain Internet, a Chinese company that advertises blockchain programs and services. Blockchain is the distributed ledger system that serves as the foundation for bitcoin and other cryptocurrencies.

The SEC said it froze trading of UBI shares because of potentially inaccurate information the company filed in its disclosures to the agency and "recent, unusual and unexplained market activity" around UBI stock since November.

The trading suspension spans from 9:30 a.m. on Monday through 11:59 p.m. on Jan. 22.

Regulators have boosted their oversight of cryptocurrencies and blockchain technology companies as they attract more attention from the mainstream financial world.

Read Sylvan Lane's story here.

 

Finance: Sen. Elizabeth Warren (D-Mass.) accused the acting director of the consumer bureau of using concerns about cybersecurity to sabotage the agency's oversight of the financial sector.

Warren, in a letter released Monday, said acting Consumer Financial Protection Bureau Director Mick Mulvaney had been "hobbling the agency" by suspending data collection.

"I fear that the freeze in data collection has in practice fundamentally changed how the CFPB interacts with its regulated entities," wrote Warren to Mulvaney, also the director of the Office of Management and Budget, and deputy director Leandra English on Jan. 4.

President Trump appointed Mulvaney as the CFPB's temporary head in November after former Director Richard Cordray resigned to run for Ohio governor.

Mulvaney, a fierce critic of the CFPB, ordered employees to stop collecting consumer data in December, citing reports from the CFPB inspector general highlighting cybersecurity concerns. Conservatives have long opposed the CFPB's collection of personally identifiable information from banks and financial services companies.

Sylvan Lane explains here.

 

Transportation: The Department of Transportation (DOT) is teaming up with the popular navigation app Waze on a new initiative designed to make the nation's roads safer, the agency announced Monday.

The DOT is launching two pilot projects that are aimed at integrating traditional crash data with crowd-sourced traffic data that can be more quickly collected and analyzed.

The goal of the new approach is to gain better insight into how to decrease fatalities on U.S. roads, which have been climbing at historic rates in recent years.

"Advances in data science have the potential to transform the Department's approach to safety research and provide insights that can help improve highway safety," Transportation Secretary Elaine Chao said in a statement.

Melanie Zanona has the details here.

 

Health care: The Trump administration is turning to regulations as their last, best hope of chipping away at ObamaCare in 2018, with congressional Republicans unlikely to pass full repeal.

A proposed rule released last week targeting the health law is likely the first step in a new effort to undermine the law. And advocates for ObamaCare worry that another forthcoming rule could cause even more damage.

The administration on Thursday eased rules on small businesses that band together to buy health insurance through what are known as association health plans (AHPs).

A second proposed rule on short-term insurance plans, yet to be unveiled, could have an even greater impact, with much broader exemptions from ObamaCare.

Read Nathaniel Weixel's story here.

 

Courts: The Supreme Court on Monday refused to hear two cases challenging a Mississippi law that allows businesses and government employees to deny services to LGBT people based on their religious beliefs.

The court's refusal to hear the case leaves intact the law, known as H.B. 1523, that says the state government will not take any discriminatory action against persons who don't believe in same-sex marriage, homosexuality and transgenderism.

LGBT rights groups called the law the "worst in the nation" and the Supreme Court's decision a "missed opportunity."

Lydia Wheeler explains the case here.

 

Workplace safety: There are fewer workplace safety inspectors under the Trump administration, according to new data obtained by NBC News.

The Occupational Safety and Health Administration (OSHA) lost 40 inspectors through attrition since Trump took office, information the outlet received through a Freedom of Information Act request shows, and vacancies remained unfilled as of last Oct. 2.

The decline accounts for 4 percent of OSHA's total federal inspection force, which was under 1,000 in early October, the report said.

Tasked with assuring health and safety of American workers, OSHA relies on its workplace inspectors to find safety violations and flag hazardous working conditions.

The Labor Department, though, told NBC News that OSHA has hired "several additional inspectors" and is currently recruiting over two dozen more.

Read more from Lydia Wheeler here.

 

Energy: The Supreme Court Monday declined to hear a coal mining company's appeal that the Environmental Protection Agency (EPA) must regularly report on the impact to coal jobs from its regulations.

Murray Energy Corp.'s case was one of dozens the court declined to hear without any explanation.

The rejection means that the previous ruling stands. The Court of Appeals for the 4th Circuit ruled that the EPA does not have to regularly produce the jobs reports.

Murray Energy is headed by Bob Murray, an outspoken coal mogul and frequent litigant against the Obama EPA and others he has perceived as anti-coal, as well as a strong supporter of President Trump.

The case started under the Obama administration, amid industry and Republican accusations the administration was killing thousands of jobs with its environmental rules.

Timothy Cama has the details.

 

Taxes: The top Democrats on Congress's tax-writing committees are concerned the Trump administration may pressure the IRS to produce withholding tables that would benefit Republicans politically but ultimately cause people to owe taxes next year.

In a letter to acting IRS Commissioner David Kautter on Monday, Sen. Ron Wyden (D-Ore.) and Rep. Richard Neal (D-Mass.) said they are worried that the Treasury Department "may unduly influence the new withholding tables for the 2018 tax year in a manner that will result in millions of taxpayers receiving larger after-tax paychecks this election year but ultimately owing federal income tax when they file in 2019."

The IRS is expected to release guidance this month on tax withholdings from employee's paychecks that reflect the new tax law President Trump signed last month.

Naomi Jagoda explains the tax controversy here.

 

Tech: The Federal Communications Commission (FCC) will vote later this month on a proposal to enhance wireless emergency alert systems following a string of natural disasters.

The agency has not released details on the proposed rules, but Chairman Ajit Pai said providers who participate in the FCC's Wireless Emergency Alerts (WEA) program will be required to "deliver alerts in a more geographically targeted manner."

"This would encourage more local officials to use these alerts during emergencies as well as lead Americans to take more seriously the alerts they receive on their mobile devices," Pai said in a statement.

Harper Neidig has the details here.

 

Energy: A Department of Energy (DOE) nominee who co-wrote a piece in 1993 objecting to gay troops in the military withdrew from consideration on Sunday.

David Jonas, who President Trump tapped last year to be DOE's general counsel, wrote on his personal LinkedIn page that he was withdrawing his name from consideration.

"In considering the additional months that would be required for final confirmation, as well as my professional responsibilities at FH+H Law Firm, I respectfully and regretfully requested that my nomination be withdrawn from consideration," Jonas said.

Jonas told The Hill that he requested his nomination be pulled last week.

Timothy Cama has the story.

 

IN OTHER NEWS

Crytocurrencies are selling off (Bloomberg)

Trump eyes regulation cuts, high-speed internet to help rural farmers (Washington Times)

Is overregulation really holding back the US economy? (Harvard Business Review)

Utah wants clarity on regulatory say over pipeline project (Associated Press)

GoPro to exit drone business, cites regulatory concerns (ZDNet)

VTech to settle charges it violated children's privacy (Reuters)

 
 
 
 
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