A focus on deregulation, national security, and AI
KPMG Regulatory Insights
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February 2025
The technology industry (inclusive of “Big Tech”, social media and telecommunications) already faces regulatory changes based on the new Administration actions and re-prioritization. Incoming and acting agency leadership as well as Executive Orders and actions (including actions related to recissions, “regulatory freeze”, and AI) provide preliminary signals for potential regulatory shifts, including in the areas of:
Across agencies, new and acting agency leadership is setting parameters for regulatory activity going forward, including initial support for:
Signals | Description/Examples | Source |
---|---|---|
Regulatory Pullback
| Implementation of Executive Order to “pause” new rulemaking | |
Withdrawal of proposals (e.g., bulk billing, infrastructure builds | ||
Potential consideration of changes to final rules not yet effective (e.g., COPPA amendments) | ||
Potential review of current proposals (e.g., CISA Incident Reporting, CFPB RFI on Collection, Use and Monetization of Consumer Payment and Other Personal Financial Data) |
| |
Potential review, modification, suspension, or recission of policies, directives, regulations, orders taken pursuant to Executive Order 14110 (2023 AI EO) determined to be inconsistent with the priorities of the new Administration (e.g., economic competitiveness, national security) | ||
National Security Focus | Under “America-First” agenda, likely continued/expanded use of tariffs, sanctions and/or bans (e.g., China, Russia) inclusive of sector-specific and tech-related actions. Areas of interest may include IP rights, connected products, and investments in national security technologies in other countries) | |
Investigation Focus | Implementation of Executive Order on free speech and censorship – investigations anticipated regarding perceived social media efforts to “moderate, deplatform or otherwise suppress speech that the Federal Government did not approve” | |
Potential shift to “evidence of effects” in anti-competition and a focus on procedural requirements to issue administrative complaint with a “reason to believe” (FTC Act Section 5) Reinstatement of certain investigations; Initial investigations include news/social media content and funding |
| |
State Activity | Expect continued and active state efforts to introduce and enforce laws on technology, media, and telecommunications policy as well as increasing potential for regulatory divergence (global/federal/state), including in areas such as data privacy protections (e.g., consent, sensitive data), AI development/deployment, and antitrust |
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Key regulatory areas that may be impacted, include:
Signals | Description/Examples | Source |
---|---|---|
AI | Implementation of Executive Order on Removing Barriers to American Leadership in AI Naming of Special Advisor for AI and Crypto with responsibilities for overseeing regulatory frameworks, collaboration with officials and stakeholders, including PCAST, and alignment of AI priorities with administration policies Development of a new Artificial Intelligence Action Plan by July 22, 2025 | |
Focus on advanced AI cyber defense programs at federal level for energy and defense (2025 Executive Order 14144 remains in place) | ||
Cyber
| Executive Orders (14144 and 14028) on cybersecurity from previous administration remain in place; cybersecurity focus remains on strengthening critical infrastructure and national security Focus on secure procedures and strong identity authentication and encryption; agencies are strongly encouraged to accept digital identity verification for public benefits programs | |
Likelihood for reduced size and scope of varying agencies/functions, including the Cybersecurity and Infrastructure Security Agency (CISA) | Senate Homeland Security & Governmental Affairs Committee, Statements, Testimony | |
Uncertainty regarding Cyber Safety Review Board (CSRB) public/private partnership to review and assess cyber incidents (note: previous membership disbanded by DHS acting director) | Media Reports | |
Data & Privacy
| Uncertainty on final rule on bulk sensitive data handling by U.S. companies, due to “regulatory freeze” on previous administration’s rules | |
Restrictions persist on transactions around foreign-connected hardware and software collecting data on U.S. consumers (e.g., Department of Commerce rule on self-driving cars) to protect against potential national security and sensitive consumer data risks (biometric/geolocation)) | ||
Potential to revisit recent COPPA amendments re: parental consent, indefinite data retention, age verification-related data collection | ||
Potential for increasing divergence between federal/global/state expectations and requirements regarding data and privacy |
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Public Access/ Funding
| Support for court ruling against previous administration’s net neutrality rules | |
Uncertainty on broadband (BEAD) program funding broadband access and deployment, due to pause on funds from Infrastructure Investment and Jobs Act Reassessment of government grants/investments more broadly, with a focus on cost efficiency and adherence to contract terms | ||
Content Moderation
| Investigations anticipated regarding social media perceived to have “moderate[d]. deplatform[ed] or otherwise suppress[ed] speech” during previous administration | |
Reports and industry announcements of pre-emptive adjustments to content moderation practices in anticipation of potential Administration/agency policy shifts | Media Reports |
First 100 Days: Regulatory Signals for Tech, Media & Telecom
A focus on deregulation, national security, and AI
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