As New York Finalizes New Social Media Rules, US Senate Considers Nationwide 'SCREEN' Act
New York has finalized new rules that will govern social media apps in the state starting on January 25, 2027. The law prohibits social media platforms from sending notifications to minors between midnight and 6 a.m. without parental consent. And minors "will only be shown content from other accounts they follow or otherwise select in a set sequence, such as chronological order," rather than "the default algorithmically personalized feeds... unless they get parental consent for an addictive feed." (Social media companies "must offer at least one alternative method for age assurance besides providing a government-issued ID," the announcements points out, and any information used to determine age "must not be used for any other purpose and must be deleted or de-identified immediately after its intended use.")
But meanwhile, the EFF writes that a committee in the U.S. Senate is considering the SCREEN ACT, "a sweeping age-verification bill that would require online services to verify users' ages before they can access any sexually explicit content. If this bill passes, it will force millions of adult internet users to give up their anonymity, privacy, and security before they access lawful speech."
Unlike many state-age verification laws — which have been harmful in their own right — the SCREEN Act has no requirement that a significant portion of the website consist of sexually explicit content that is harmful to minors. The bill requires nearly any service hosting even a single piece of sexually explicit content to verify the ages of its users. The result is that the bill would apply not only to adult content sites like PornHub or OnlyFans, but also streaming services like Netflix, and social media platforms like Reddit, Discord, or Bluesky, if they host any adult content...
Under the SCREEN Act, the "bouncer" will be a digital age-verification service that captures your personal information and saves it to a database for an unspecified amount of time. The consequences of the bill won't be limited to minors. If websites and apps are expected to reliably identify teenagers, adults will be asked to prove they are adults. Even worse, the SCREEN Act is a privacy and data security nightmare. One provision of the bill requires services to take reasonable steps to protect the data collected and to not maintain for longer than is necessary. But these are terribly weak protections that impose no meaningful collection, use, or retention limits on services collecting people's private information...
The SCREEN Act also targets virtual private network (VPN) users and providers. The bill requires covered websites to verify users' ages based on their IP addresses unless the service can determine that the user is outside the United States, and specifically requires age verification on traffic coming from known VPN addresses. In practice, this discourages the use of VPNs and proxy servers, which millions of people rely on for legitimate purposes such as protecting personal privacy, securing public Wi-Fi connections, safeguarding journalists and activists, and preventing data tracking...
The SCREEN Act creates onerous age-verification rules that will block adults from accessing lawful speech, curtail their ability to be anonymous, and jeopardize the data security and privacy of all internet users.
Read more of this story at Slashdot.
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CNN tells the unfortunate tale of hedge fund Situational Awareness, "founded in 2024 by German-born Leopold Aschenbrenner when he was in his early 20s."
Aschenbrenner, a former OpenAI employee, founded the hedge fund on the premise that "AI will be the dominant driver of global market returns over the next decade," according to the firm's site... Aschenbrenner managed to turn hundreds of millions of dollars into tens of billions of dollars over the course of roughly two years... That streak ended on Thursday, though, when the fund was forced to sell the bulk of its public holdings to a bigger rival after many of its investments went south.
But that's only part of the story. The fund employed a risky strategy of borrowing money to purchase stocks. When the investments appreciate, the payoff can be massive. But when the investments sour, the losses can be catastrophic. The downturn in AI stocks over the course of this month, like chip makers and cloud computing providers, hit the hedge fund extra hard. It was forced to sell off many investments at a steep discount to rival hedge fund Citadel in what Aschenbrenner reportedly compared to a "bank run" in a letter to investors.
"Critics pointed out that Aschenbrenner had no experience running money prior to launching his fund in July 2024, calling him more lucky than smart," writes CNBC:
Some noted that his early work experience was at the doomed crypto firm FTX, where he helped now-disgraced founder Sam Bankman-Fried run a charity out of a Bahamas penthouse. Others on Wall Street, including former traders at global investment banks, noted that in light of reports Situational Awareness used as much as 400% leverage, the collapse wasn't shocking.
The Wall Street Journal reports that Situational Awareness "also used options to amplify its returns. That meant that even small declines in individual names could have big impacts on Situational's portfolio."
And so, as the New York Post put it, "The celebrated crystal ball of the 'Nostradamus of AI' hasn't merely gone cloudy — it has rolled off the table and shattered on the parlor floor."
Wall Street breathed a huge sigh of relief last week as an AI-focused hedge fund called Situational Awareness reportedly sold most of its portfolio — reportedly down 67% last month on the backfiring of debt-fueled bets on chipmakers and assorted artificial-intelligence firms — to billionaire Ken Griffin's Citadel...
The prevailing sentiment was best summed up by a veteran Wall Street sage who has seen a lot of flameouts in his day. Let's just say he wasn't impressed by Leopold Aschenbrenner, the 25-year-old German-born "Nostradamus" figure who is the founder of Situational Awareness... "Just your typical leveraged idiot who was right until he was wrong," the source said, adding that the implosion is a "one-off...."
[Another trusted source] felt there was room for conversation: "A significant issue. Not viewed as systemic right now. I wonder if that changes as more problems arise." Indeed, the fact is that most of Wall Street is closely monitoring the Situational Awareness situation because they were holding many of the same positions as Aschenbrenner. Another top hedge fund manager I won't name tells me he has been getting crushed on similar investments in chipmakers essential to the AI supply chain, as well as other companies feeding off this technology.
Thanks to Slashdot reader joshuark for sharing the news.
Read more of this story at Slashdot.
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