Tech Brew Ride Home - Mon. 12/30 – Welcome To A USB-C Life

Episode Date: December 30, 2024

AT&T and Verizon say they’ve rooted out Salt Typhoon. Trump asks the Supreme Court to intervene in the TikTok situation. All the banks want to be like Tether. And as we slide into this new year, it���s a USB-C world now, we’re just living in it. Links: AT&T, Verizon Say Networks Now Clear After Salt Typhoon Hack (Bloomberg) Trump Asks Supreme Court to Pause Law Threatening TikTok Ban (Bloomberg) Biden administration proposes new cybersecurity rules to limit impact of healthcare data leaks (Reuters) Banks Want In on Tether’s Billions in Stablecoin Profits (Bloomberg) ‘Grand Theft Auto VI’ set to break records despite gaming slowdown (FT) The USB-C charging mandate arrives in the EU — here’s what that means (The Verge) Learn more about your ad choices. Visit megaphone.fm/adchoices

On April 4th, 2023, around 2 in the morning, a man was found stabbed multiple times on a sidewalk in downtown San Francisco. Hey, who did this to you? What happened next turned the story into a political firestorm. Reports have identified the victim as Bob Lee, the founder of Cash App. From Bloomberg Podcasts, this is Foundering, the Killing of Bob Lee, beginning April 16. Welcome to the Tech meme right home for Monday, December 30th, 2024. I'm Brian McCullough today. AT&T and Verizon say they've rooted out Salt Typhoon. Trump asks the Supreme Court to intervene in the TikTok situation.

All the banks want to be like tether. And as we slide into this new year, it's a USBC world now. We're just living in it. Here's what you miss today in the world of tech. Call me crazy, but I continue to think that all of our cellular networks, having been penetrated by hackers, likely doing the bidding of a nation state, should be bigger news, but hey, I'm just one man. Still, I am encouraged to hear that AT&T and Verizon have come out to say that they believe their networks are now clear after the Salt Typhoon

intrusion. AT&T says a few individuals of foreign intelligence interest were targeted in the hacks, quoting Bloomberg. The hackers attempted to gain information about foreign intelligence. Dallas-based AT&T said Thursday in a statement, New York-based Verizon said in a separate statement that, quote, a small number of high-profile customers in government and politics had been targeted. We have not detected threat actor activity in Verizon's network for some time, and after considerable work addressing this incident, we can report that Verizon has contained the activities associated with this particular incident. Verizon Chief Legal Officer Van Dana Venkatesh said in the statement. An independent cybersecurity firm confirmed the

containment of the threat, Verizon said. Both carriers said they are cooperating with authorities and notifying parties whose information may have been compromised. We detect no activity by nation-state actors in our networks at this time, AT&T said, based on our current investigation of this attack, the People's Republic of China, targeted a small number of individuals of foreign intelligence interest. In the relatively few instances in which an individual's information was impacted, we have complied with our notification obligations in cooperation with law enforcement, end quote. The Wall Street Journal reported in October that telecom carriers, including AT&T and Verizon, were hit by the Salt Typhoon network intrusions, and the hackers potentially accessed systems the federal government uses for court-authorized network wiretapping requests.

Since then, information about what's going on inside the carriers hasn't been shared widely. T-Mobile USA disclosed that it caught suspicious behavior on network-level routers that appeared to be consistent with Salt Typhoon, but it booted the attackers before they accessed any customer data. The White House confirmed Friday that nine telecom companies were breached in the intrusion, nicknamed Salt Typhoon by Microsoft. Microsoft's threat researchers, but U.S. officials didn't name the affected companies. U.S. officials have said they still don't know exactly how many Americans were targeted, and that it's impossible to predict how long it will take to eradicate the threat across the country. China has repeatedly denied involvement. The Biden administration recently called telecom

industry leaders to a closed-door session in which industry and government representatives discussed how to address the vast vulnerabilities. The attendees included AT&T chief executive officer John Stanky, end quote. President-elect Trump has officially filed a request that the Supreme Court of the United States pause the law that could ban TikTok, saying the court should give him time to, quote, pursue a political resolution of the dispute, quoting Bloomberg. Trump said the court should give him time after his January 20th inauguration to, quote, seek a negotiated resolution of the dispute. He didn't take a firm position on the constitutionality

of the law that's set to take effect January 19th, though he said it raised, quote, sweeping and troubling free speech concerns. Trump told the justices that he, quote, possesses the consummate dealmaking expertise, the electoral mandate, and the political will to negotiate a resolution to save the platform while addressing the national security concerns expressed by the government, end quote. He didn't give specifics about what kind of deal he would seek or say how long a delay he needed. The court is hearing the case on a highly expedited timeline with arguments scheduled for a special session January 10th, a little more than a week before the law is set to take effect. the case pits company and user First Amendment rights against national security interests.

Trump said a pause would provide, quote, breathing space for the court to consider the questions on a more measured schedule. His filing followed dueling written arguments submitted Friday by TikTok and President Joe Biden's administration. The Biden-run Justice Department said Chinese control of TikTok poses grave national security threats. The platform, quote, harvests sensitive data about tens of millions of Americans and would be a potent tool for covert influence operations by a foreign adversary, argued U.S. Solicitor General Elizabeth Preligar, the administration's top Supreme Court lawyer. Meanwhile, TikTok told justices that Congress failed to consider alternatives short of a ban. History and precedent teach that even when national security is at stake, speech bans must be Congress's last resort, the company argued. Trump once supported a TikTok ban, but has spoken more favorably about the platform in recent days.

He said this month he has a warm spot in his heart for TikTok because it helped sway young voters to his side in the November election. He met this month with TikTok chief chief executive officer Shao Chu at his Mar-a-Lago club, one of a series of meetings with big tech executives. The U.S. leader also spoke with the TikTok CEO Friday night after he submitted the filing to the court. CNN reporter Caitlin Collins said in a post on X, citing unidentified sources, end quote. Meanwhile, the U.S. plans to update HIPAA regulations with new cybersecurity rules to protect patients' private data, including mandatory encryption and multifactor authentication. Quoting Reuters,

healthcare organizations may be required to bolster their cybersecurity to better prevent sensitive information from being leaked by cyber attacks like the ones that hit Ascension and United Health, a senior White House official said Friday. Anne Newberger, the U.S. Deputy National Security Advisor for Cyber and Emerging Technology told reporters that proposed requirements are necessary in light of the massive number of Americans whose data has been affected by large breaches of health care information. The proposals include encrypting data so it cannot be accessed, even if leaked and requiring compliance checks to ensure networks meet cybersecurity rules. The health care information of more than 167 million people was

affected in 2023 as a result of cybersecurity incidents, she said. The proposed rule from the Office of Civil Rights or OCR within HHS would update standards under the Health Insurance, Portability Act, or HIPAA, and would cost an estimated $9 billion in the first year and $6 billion in In years two through five, Newberger said, end quote. And quoting the verge. The OCR's proposal includes requiring that health care organizations make multi-factor authentication mandatory in most situations, that they segment their networks to reduce risks of intrusions, spreading from one system to another, and that they encrypt patient data so that even if it's stolen, it can't be accessed.

It would also direct regulated groups to undertake certain risk analysis practices, keep compliance documentation, and more, end quote. Remember when I marveled that the first thing to really make serious, serious money on the blockchain in the traditional profit-making way, not just the value of the coin appreciation way, was stable coins? Well, I'm not the only one to notice that. As Tether says, it is on track for a record $10 billion in net profit this past year, 2024 banks around the world are exploring launching their own stable coins for payments. Quoting Bloomberg,

Earlier this year, Societ General Forge made its Euro-backed stablecoin, which basically represents Fiat on a blockchain ledger, available to retail investors. Financial Group AutoBHFSCA is also working on a Euro-denominated one, and London-based Revolut is considering issuing its own version. All Unity, a venture involving Deutsche Bank-owned DWS, plans to issue another one next year, and BBVA is also working on an entry. Banks in the U.S. are expected to join in on the rush once legislation that could pave the way for them to issue stablecoins is enacted in Europe with the recent clarity brought on by the markets in crypto assets regulation or mica and the decision by tether to discontinue its YRT stablecoin that has presented an opening for competitors wishing to

enable customers to make payments or hold fiat-like alternatives. Do I think that other banks will be issuing their own stable coins? Jean-Marx Stenger, Chief Executive Officer S.G. Ford said in an interview, the answer is yes. It's heavy lifting. I'm not sure. it will happen anytime soon, but it will happen, end quote. GS-Forge is already talking with a number of banks that want to use its stable coin. Stinger says it's also in discussions with about 10 partnerships or white labeling its technology for them to issue their own stablecoins, he said. Meanwhile, the card network visa, which in October launched a tokenization network for banks

to issue stable coins, is working with BBVA on a pilot in 2025. And it's in talks with many other banks. We've seen demand from banks in Hong Kong, Singapore, and Brazil said, Kai Sheffield v. He said of crypto. We are actively engaged with a number of banks across the world at various stages of the process. The rush to issue, stablecoins will enhance the role of blockchain in payments on top of a slightly different product that major banks such as JPMorgan Chase have been exploring.

Deposit tokens. While similar to stable coins, they are tied to bank accounts. Tools like JPM coin have also been used for transfers between customers of the same bank using its own blockchain. Problem is, the deposit tokens often can't go to clients of a different bank. and billions of people still don't have bank accounts. That's where stablecoins, which anyone with a crypto wallet can purchase, come in. J.P. Morgan Chase believes that stablecoin and tokenized deposits are not mutually exclusive

and expects the growing interest in bank-issued stablecoins will accelerate and become mainstream in the next three years. Nevin Malella, Global Head of J.P. Morgan's digital asset unit Kinexas wrote in an email response. There are plenty of incentives to offer stable coins. Customers have been asking for the product, multiple banks report, and then there's the profit motive. Tether is on track to close the year with more than $10 billion in net profits, according to Chief Executive Officer Polalo Artoino. For banks, risks in issuing stable coins still abound. A European central bank analysis showed that converting retail deposits into stablecane issuers' deposits weakens a bank's liquidity coverage ratio, which shows a bank's

ability to meet short-term obligations and withstand market turbulence. U.S. regulators will also need to clarify what kinds of reserves are acceptable for banks to use as backing their stable coins, and whether stablecoin deposits will be insured. If banks were to issue uninsured stablecoins alongside insured deposits, there would be significant consumer confusion about what is and isn't insured, said Hillary Allen, a law professor at American University. Panic would likely ensue if in a moment of crisis consumers were told that their bank-issued stable coins weren't protected, end quote. I've said multiple times, expect that one of the biggest stories of 2025 will be Grand Theft Auto 6. EFC Intelligence expects that game to generate $3.2 billion in its first year,

double that of 2013's Grand Theft Auto 5, making it a bright spot in a lackluster video games market that we've also been talking about. Quoting the FT, Grand Theft Auto 6, which publisher take-to interactive is set to release in the autumn on PlayStation and Xbox consoles, is likely to exceed $1 billion in pre-orders before it even becomes available, according to analysts at DFC Intelligence. a video games research group. Total revenues from GTA 6's first 12 months after release are expected to reach $3.2 billion. DFC predicts double its 2013 predecessor, such a success with far-outstrip 2024's biggest films inside out two, which grossed $1.7 billion globally, according to

Box Office Mojo, and Deadpool and Wolverine, which has taken in $1.3 billion. We think it's going to be one of the biggest entertainment launches in history. Not just in games, but for all of media, said Yoshio Osaka, chief executive of Games Focus IDG consulting, the pen-up demand is greater than anything we've seen before. However, GTA6 will be an outlier in a games industry that is still struggling to recover from a protracted slump, leading to layoffs at Sony and Microsoft's gaming units, as well as top publishers, including Take 2, Electronic Arts and Ubisoft. More than 33,000 people have lost their job since 2022, according to tracking site, games industry layoffs, including almost 15,000 in 2024 alone.

A spokesperson for Take 2 said they were, quote, a bit surprised by the reduction of demand from players that started in 2022 as post-pandemic consumers turned off their screens and returned to live in-person events. All of us in the industry had to do some restructuring. We got a little bit ahead of ourselves in terms of growth expectations, end quote. And finally today, as the year ends, those EU common charging regulations have come into effect. It's why Apple has been ditching the lightning ports in their recent products. It's all about USBC ports, fast charging, unbundling of charging bricks and more. Some folks are salty about how this is affecting the industry and their gadgets, which we'll get to in a second. But first, quoting the verge. The goal for Directive 2022-2380, known colloquially as the common charging solution,

is to reduce e-waste and solve market fragmentation. You may recall Apple and the EU, but, heads over this a few years ago. The requirement for USBC is just the surface of this directive, though. It also includes regulations on fast charging, unbundling charging bricks from retail devices and the introduction of improved labeling, and it has the potential to make life for a gadget enthusiasts in the EU a whole lot simpler, if it works, of course. The sheer breadth of this directive means its impact will be felt by both consumers and businesses as the common charging solution applies to anything the EU defines as radio equipment. This, it states, is an electrical or

electronic product that intentionally emits or receives radio waves for the purpose of communication and or radio determination. The regulation explicitly covers handheld mobile phones, tablets, digital cameras, headphones, headsets, handheld video game consoles, portable speakers, e-readers, keyboards, mice, portable navigation systems, and earbuds that are, quote, rechargeable with a wired cable and can operate with a power delivery of up to 100 watts. A PlayStation 5, for example, has a 350-watt power rate. meaning it won't fall under the directive. The Nintendo Switch draws up to six watts in TV mode, meaning it will. The only current exception to this definition are laptops, which have until April

28, 2026, to comply with the directive. There are gray areas, though. Drones, for example, aren't on the list, and it's unclear if they fit into other categories like digital cameras. In instances like this, the Commission says it will, quote, continuously assess market developments, market fragmentation and technological progress with the aim of keeping this list of devices as relevant and up to date as possible. Wireless charging also isn't covered by the directive. For now, the Commission says it will promote the harmonization of the practice to, quote, avoid future fragmentation of the internal market and any negative effects on consumers and the environment.

What shape this may take is anyone's guess, but the EU has it on the radar. Despite these pools of murkiness, the key point is the majority of consumer-facing tech in the EU must be equipped with a USBC receptacle. Although this only applies to the device side, as charging brick connections aren't covered in this directive. Still, for the average user, there won't be a heap of change come December 28th around charging inputs. The majority of devices on the market that fall under this directive

already use USBC. Even Apple, the big holdout with its lightning technology, shifted to the format on most of its devices. An interesting wrinkle in this regulation is the EU hasn't actually banned proprietary charging ports. Instead, hardware just needs the ability to charge via USBC. This means the current MacBook range with MagSafe is compliant, as you can charge them with both Apple's magnetic connector and the EU's chosen tech, end quote.

Now that article went on and on about how this is affecting the EU, but it's going to affect all of us because, you know, device makers aren't going to create separate gadgets for the EU and the U.S. and other markets, so we're all living in a USBC world. as of December 28th. Read more in the piece for a detailed breakdown of all the specific regulations and the technology is involved, but while some folks on Twitter have been complaining about all of this, look, I just spent a week at my parents' house. I was able to charge all of our phones, all of our tablets, everything, except our watches, from one high-voltage charging brick with USBC. I didn't have to pack 18 different chargers for four people's various devices. I had one

charger with three USBc outlets, one single socket. We charged our laptops to both my MacBook and my wife's MacBook. We did not take out our standard MagSafe chargers at all this week, not even a single time. All of our devices. One single charge. It's great. I don't understand why people don't like it. All right, look, it's a slow news period, so I'm going to take the next couple of days off again, not just for relaxation and holiday week purposes, but also because there's probably not going to be enough happening to make a full show out of. So expect to hear from me again on Friday, unless something earth-shattering happens. I reserve the right to do a quick show tomorrow or Thursday if news dictates. But otherwise, happy new year. See you in 2025.