The Big Story: Senate setting up broadband boost as part of infrastructure package
As the Senate moves toward passing the $1 trillion infrastructure bill, startups stand to gain from provisions in the bill that would increase reliable, accessible, and affordable broadband across the country. Although the bill has faced hurdles as it is being considered on the Senate floor—including significant pushback from the cryptocurrency community—the bill overall is a win for startups and Internet users.
If passed, the bill would steer $65 billion towards reliable, affordable, broadband development, including more than $42 billion for deployment grants to U.S. states and territories, as well as D.C. and Puerto Rico. The Digital Equity Act is another provision focused on broadband affordability, and would funnel $2.75 billion to inclusion and broadband adoption efforts like digital skills training, or cover all costs for low-income households to have and maintain Internet. The legislation also promises $1 billion to build out a comprehensive middle-mile technological framework, providing underserved communities with broadband through alternative network connection paths.
Broadband is essential to the success of our startup ecosystem, and steps to close the digital divide will ensure that everyone has the ability to contribute to entrepreneurship and innovation. Policymakers should continue the push for equitable Internet access, fueling our startup ecosystem and economy.
Policy Roundup:
Infrastructure bill’s consequences for cryptocurrency. While the bipartisan Senate infrastructure bill is on track to be a win for the startup ecosystem, it currently contains a provision that would create compliance burdens and data collection requirements for a wide swath of the cryptocurrency ecosystem. The language changes the definition of a “broker” in cryptocurrency transactions, and the new definition would likely sweep in non-custodial entities, like miners or wallet creators, who may be unable to comply with reporting requirements. As we explained in a recent blog, lawmakers should adopt a proposed amendment to revise the language and protect the ability of the cryptocurrency ecosystem and its many startups to grow in the U.S.
Canada proposal would create content burdens for startups. Last week, the Canadian government released a technical paper outlining a new framework to govern online content that would make it harder for startups with Canadian users to operate. The proposal would create several obligations for Internet platforms including 24-hour content takedown timelines and content filtering requirements. Penalties for non-compliance with the rules could include fines or even government-directed blocking of services. As we continue to note, content moderation is incredibly difficult at scale, and expensive, imperfect filtering technologies are often out of reach for many startups. If adopted, the proposal would make Canada—often a first foreign market for American startups—a less welcoming environment for U.S. startups to expand.
FTC missing deadlines for merger reviews. The FTC is failing to review merger filings within the timeline set forth by the Hart-Scott-Rodino Act, citing a lack of resources and a high volume of merger filings. Instead, the commission is sending letters warning merging parties to proceed at their own risk. Commissioner Noah Phillips cautioned this week that the practice may chill legal merger activity. And as we’ve long stated, acquisitions are a vital component of the startup ecosystem, and enable further innovation.
Startups are watching as EU considers AI proposal. As the European Commission collects feedback on its proposal to regulate artificial intelligence, we’re examining how the EU proposal could inadvertently and unnecessarily stifle innovation. While EU policymakers correctly recognize that some uses of AI can harm human rights, the proposal could subject both developers of AI—like U.S. startups operating there—and businesses that use those tools to onerous requirements, likely discouraging innovation in this space.
Startup Roundup:
#StartupsEverywhere: San Francisco, California. James Silva is the founder and CEO of San Francisco-based ConciergeBot, an AI-powered chatbot for the hospitality and travel industry. We spoke with James to learn about eliminating bias in AI, navigating international regulations, and making technology accessible to a global market.
Join Engine in asking Congress to provide Dreamers with permanent legal status. After a recent federal court found the Deferred Action for Childhood Arrivals (DACA) program unlawful, it is up to Congress to find a legislative solution for the thousands of Dreamers without protections. Dreamers are entrepreneurs and job creators, who contribute to the vibrancy of America’s innovation ecosystem. Startups are encouraged to sign our letter urging Congress to pass a permanent solution for Dreamers that includes a pathway to citizenship. The deadline for joining the letter is today, August 6, at 5pm ET.
