Startup Community Paying Close Attention to Biden’s Picks for Key Federal Agencies
TLDR: As President Joe Biden’s transition team continues to vet and identify key federal officials, agencies that contribute to technology and small business policy—such as the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the U.S. Patent and Trademark Office (USPTO)—will likely see new leaders in the coming months. As the Biden team picks new federal officials, however, it should be guided by a commitment to supporting and enabling the nation’s innovation ecosystem.
What’s Happening This Week: With Joe Biden sworn in today as the 46th President of the United States, the new administration is officially moving forward with the process of naming heads and acting heads of a bevy of federal agencies that will craft policies and enforce regulations affecting the U.S. startup community.
Biden announced this week that he has chosen FTC Commissioner Rohit Chopra—one of two Democrats atop the agency—to serve as the next director of the Consumer Financial Protection Bureau (CFPB). Chopra’s nomination, which comes after Republican FTC Chairman Joseph Simons announced his resignation on Jan. 29th, means the White House may nominate two new commissioners at the agency. The FTC serves as the nation’s de facto regulator when it comes to certain tech-related issues, such as privacy and competition, that are particularly relevant to the startup community.
The presidential transition also signals the official departure of FCC Chairman Ajit Pai, who led efforts to overturn the Obama-era net neutrality rules—crucial protections that ensured the Internet remained free and open for startups, users, and other digital services. Pai also led the agency during the Trump administration’s misguided petition to review Section 230, prompted by an executive order on “preventing online censorship.” The Biden administration will, at least initially, likely name one of the current Democratic FCC commissioners—Jessica Rosenworcel or Geoffrey Starks—as the agency’s acting chair. An incoming Democratic majority at the agency means that the FCC is likely to pursue a number of startup-friendly policies, including restoring the net neutrality rules and expanding broadband programs.
The Biden administration will also name a new USPTO director, someone who can play a valuable role in supporting the nation’s startup innovators. In a letter to the administration this week, we outlined the principles that should guide the selection of the next USPTO director and encouraged the nomination of a director who will “promote patent quality and balance, engage diverse stakeholders, and embody the diversity we want to see in the nation’s innovation ecosystems.”
Why it Matters to Startups: While the Biden administration’s personnel changes may not immediately impact the day-to-day operations of U.S. startups, the policies and regulations implemented by federal agencies have a noticeable, direct, and far-reaching impact on these companies. The presidential transition presents a ready opportunity for policymakers and officials to reaffirm their support for the startup community by choosing leaders who will champion U.S. entrepreneurs.
The Biden transition team has already offered a number of proposals to support entrepreneurs, such as expanding access to capital for new and established small businesses—including those affected by the pandemic and those led by underrepresented founders. But, as the startup community knows all too well, federal agencies wield an enormous amount of influence and power when it comes to the regulatory landscape that nascent companies must navigate. The current vacancies at the FCC, the FTC, the USPTO, and other agencies present an opportunity for the administration to nominate and confirm officials who truly understand the value of early-stage companies to the U.S. economy.
The new administration must pursue policies and regulations conducive to long-term startup success. This includes appointing commissioners to the FCC who will restore the strong net neutrality protections that helped startups grow and succeed by keeping the Internet a level playing field. It includes nominating and appointing agency officials who will avoid moving forward with politicized efforts to overturn critical Internet laws—such as the previous administration’s attempt to empower the FCC to reform Section 230 over claims of big tech “censorship,” despite the vital importance of the liability limitations to startups that host and moderate user content. And it includes reversing policies that have proven harmful, such as USPTO’s recent efforts to deprioritize patent quality—which have, in turn, increasingly allowed low-quality patents to be weaponized against startups.
The policy decisions made by federal officials and agencies will have a direct impact on the startup community. We urge the Biden administration to work with entrepreneurs, startups, and other advocates to ensure that the officials making these key decisions will offer early-stage companies the support and regulatory clarity that they need to innovate, grow, and thrive.
On the Horizon.
TheBridge and All Tech is Human are holding an event at 1 p.m. ET this Thursday on social media and content moderation.
Join Engine and entrepreneurs from across the country at 1 p.m. ET next Monday, January 25th to discuss why the startup perspective matters in policy debates. We'll be releasing our Startup Agenda 2021, outlining the issues that policymakers should care about if they want to boost innovation, competition, and entrepreneurship this year. You can RSVP here.
