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- CFTC Whistleblower Program at "Risk of Being Defunded” Unless Congress Acts
CFTC Whistleblower Program at "Risk of Being Defunded” Unless Congress Acts
Plus take a tour of the Failure Museum.
Good morning! Here’s what’s up.
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Clips ✂️
CFTC Whistleblower Program at Risk Without Lawmakers’ Help
The Commodity Futures Trading Commission, under a program established by Congress after the 2008 financial crisis, offers awards to whistleblowers whose tips lead to successful enforcement actions. The awards come from a revolving fund capped at $100 million that also pays for the CFTC’s whistleblower office and its staff.
Lawmakers are weighing how to keep the office open if the fund is depleted. Also up for debate is raising the fund’s cap to $300 million, putting it in line with the Securities and Exchange Commission.
Major Questions Doctrine Could Thwart SEC Climate Fraud Fight
In that lawsuit, fossil fuel companies and other powerful business interests filed briefs in court arguing that the SEC’s new disclosure rule about the financial risks of climate change is illegal—because, in their view, climate change is controversial.
The petitioners argue that the rule runs afoul of the major questions doctrine that the Supreme Court embraced two years ago, which says federal agencies can’t regulate issues of economic or political importance—i.e., controversial topics—without express authorization from Congress.
Following this course could put us in the dark about the economic impact of climate change, while also barring the SEC from disclosure rules about anything opponents deem “controversial.” Do we really want that?
Democratic bill seeks to reverse Supreme Court ruling on federal agency power
Democratic senators plan to introduce legislation Tuesday that would effectively overturn a Supreme Court ruling last month that imposed new limits on federal agencies when they issue regulations about a wide variety of issues, including the environment and consumer protection.
Sen. Elizabeth Warren, D-Mass., will introduce a bill that would restore the previous standard under which federal agencies had some leeway to interpret the law when they issued regulations under statutes that are ambiguously written. It has the backing of nine other Democratic senators, as well as Sen. Bernie Sanders, I-Vt.
The Man in Silicon Valley Who’s Completely Obsessed With Failure
As a venture capitalist based in the heart of Silicon Valley, Sean Jacobsohn is in the business of hunting for success. And he recently did something that would have sounded completely nuts almost anywhere else on the planet.
He decided to build his own personal monument to failure.
When he works from the desk in his home office, he is now sitting in the middle of the Failure Museum, which might be the world’s largest collection dedicated to business fiascoes, corporate malfeasance and spectacular flops.
There are Bear Stearns mugs, several models of BlackBerry and pieces of Bernie Madoff’s stationery. There’s a WeWork thermos, unopened Champagne from Webvan’s initial public offering during the dot-com bubble and, of course, cans of New Coke. There is somehow cologne from both Harley-Davidson and Burger King. There are not one but two Pets.com sock puppets. And there is a Mattel doll, but it’s not Barbie or Ken—it’s Allan.
👉 Ha, I thought I was the only one who collected Enron umbrellas, cups from Madoff’s yacht, etc. I call it “scandalware,” this guy calls it a Failure Museum, but same concept!
I didn’t tour the whole online Failure Museum but I’m definitely jealous that he has a Theranos lab coat in his collection!
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Cosmetics Platform Hit with AI-Washing-Related Securities Suit
When SEC Chair Gary Gensler expressed concerns last December about the possibility of reporting companies engaging in “AI-washing,” he was referring company disclosures that overstate or mislead investors as to their true AI capabilities or the extent to which the company has incorporated AI into their operations or products. Since the time of those remarks, there have in fact been several AI-washing based SEC enforcement actions (as discussed, for example, here), and even several securities class action lawsuits based on AI washing allegations (for example, here). Late last week, In the latest example of an AI- washing-based securities class action lawsuit, a plaintiff shareholder filed a securities class action lawsuit against Israeli-based cosmetics internet platform Oddity Tech Ltd., based on allegations that the company overstated the extent to which AI processes and tools enhanced its delivery of consumer services. A copy of the July 19, 2024, complaint can be found here.
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Video
David Smyth’s Cady Education is back with Part 2 of its cartoon explaining the Panuwat case!
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All Superior Court of Los Angeles County locations closed tomorrow as work continues to get systems back online after ransomware attack. More information here: drive.google.com/file/d/1fnrbDb…
— Superior Court of Los Angeles County (@LASuperiorCourt)
3:53 AM • Jul 22, 2024
I’m kind of shocked? They’re selling a BAYC IPA and a crypto Pepe Gose.
This is rural China.
I’ll try the Gose.
— H.E. Cas Piancey (@CasPiancey)
2:32 AM • Jul 23, 2024
Of crypto boosters and several members of the so-called "PayPal Mafia" supporting Donald Trump for president, @vkhosla says, "Crypto is not a thing that you should hang the election on."
— Squawk Box (@SquawkCNBC)
4:21 PM • Jul 22, 2024
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