Photo of Matthew Harden

Matthew Harden

Matthew Harden is a litigation associate in the firm’s New York office and advises on a broad range of cybersecurity, data privacy, and national security matters, including cybersecurity incident response, cybersecurity and privacy compliance obligations, internal investigations, and regulatory inquiries.

This is part of a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs  described the actions taken by various government agencies to implement

This is the thirty-fourth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs describes described the actions taken by various government agencies to implement the Cyber EO from June 2021through January 2024.  This blog describes key actions taken to implement the Cyber EO, as well as the U.S. National Cybersecurity Strategy, during February 2024.  It also describes key actions taken during February 2024 to implement President Biden’s Executive Order on Artificial Intelligence (the “AI EO”), particularly its provisions that impact cybersecurity, secure software, and federal government contractors. 

NIST Publishes Cybersecurity Framework 2.0

            On February 26, 2024, the U.S. National Institute of Standards and Technology (“NIST”) published version 2.0 of its Cybersecurity Framework.  The NIST Cybersecurity Framework (“CSF” or “Framework”) provides a taxonomy of high-level cybersecurity outcomes that can be used by any organization, regardless of its size, sector, or relative maturity, to better understand, assess, prioritize, and communicate its cybersecurity efforts.  CSF 2.0 makes some significant changes to the Framework, particularly in the areas of Governance and Cybersecurity Supply Chain Risk Management (“C-SCRM”).  Covington’s Privacy and Cybersecurity group has posted a blog that discusses CSF 2.0 and those changes in greater detail.

NTIA Requests Comment Regarding “Open Weight”

Dual-Use Foundation AI Models

            Also on February 26, the National Telecommunications and Information Administration (“NTIA”) published a request for comments on the risks, benefits, and possible regulation of “dual-use foundation models for which the model weights are widely available.”  Among other questions raised by NTIA in the document are whether the availability of public model weights could pose risks to infrastructure or the defense sector.  NTIA is seeking comments in order to prepare a report that the AI EO requires by July 26, 2024 on the risks and benefits of private companies making the weights of their foundational AI models publicly available.  NTIA’s request for comments notes that “openness” or “wide availability” are terms without clear definition, and that “more information [is] needed to detail the relationship between openness and the wide availability of both model weights and open foundation models more generally.”  NTIA also requests comments on potential regulatory regimes for dual-use foundation models with widely available model weights, as well as the kinds of regulatory structures “that could deal with not only the large scale of these foundation models, but also the declining level of computing resources needed to fine-tune and retrain them.”Continue Reading February 2024 Developments Under President Biden’s Cybersecurity Executive Order, National Cybersecurity Strategy, and AI Executive Order

Earlier this month, the New York Department of Financial Services (“NYDFS”) announced that it had finalized the Second Amendment to its “first-in-the-nation” cybersecurity regulation, 23 NYCRR Part 500.  This Amendment implements many of the changes that NYDFS originally proposed in prior versions of the Second Amendment released for public comment in November 2022 and June 2023, respectively.  The first version of the Proposed Second Amendment proposed increased cybersecurity governance and board oversight requirements, the expansion of the types of policies and controls companies would be required to implement, the creation of a new class of companies subject to additional requirements, expanded incident reporting requirements, and the introduction of enumerated factors to be considered in enforcement decisions, among others.  The revisions in the second version reflect adjustments rather than substantial changes from the first version.  Compliance periods for the newly finalized requirements in the Second Amendment will be phased over the next two years, as set forth in additional detail below.

The finalized Second Amendment largely adheres to the revisions from the second version of the Proposed Second Amendment but includes a few substantive changes, including those described below:

  • The finalized Amendment removes the previously-proposed requirement that each class A company conduct independent audits of its cybersecurity program “at least annually.”  While the finalized Amendment does require each class A company to conduct such audits, they should occur at a frequency based on its risk assessments.  NYDFS stated that it made this change in response to comments that an annual audit requirement would be overly burdensome and with the understanding that class A companies typically conduct more than one audit annually.  See Section 500.2 (c).
  • The finalized Amendment updates the oversight requirements for the senior governing body of a covered entity with respect to the covered entity’s cybersecurity risk management.  Updates include, among others, a requirement to confirm that the covered entity’s management has allocated sufficient resources to implement and maintain a cybersecurity program.  This requirement was part of the proposed definition of “Chief Information Security Officer.”  NYDFS stated that it moved this requirement to the senior governing bodies in response to comments that CISOs do not typically make enterprise-wide resource allocation decisions, which are instead the responsibility of senior management.  See Section 500.4 (d).
  • The finalized Amendment removes a proposed additional requirement to report certain privileged account compromises to NYDFS.  NYDFS stated that it did so in response to public comments that this proposed requirement “is overbroad and would lead to overreporting.”  However, the finalized Amendment retains previously-proposed changes that will require covered entities to report certain ransomware deployments or extortion payments to NYDFS.  See Section 500.17 (a).

Continue Reading New York Department of Financial Services Finalizes Second Amendment to Cybersecurity Regulation

This is the twenty-sixth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various government agencies to

This is the twenty-fourth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various government agencies to implement the Cyber EO from June 2021 through March 2023.  This blog describes key actions taken to implement the Cyber EO, as well as the U.S. National Cybersecurity Strategy, during April 2023. 

CISA Requests Comment on Secure Software Self-Attestation Common Form

On April 27, 2023, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) released a 60-day Request for Comment on a draft secure software self-attestation common form.  Comments will be accepted through June 26, 2023 and may be submitted through Regulations.gov.  The draft common form, developed in close consultation with the U.S. Office of Management and Budget (“OMB”), is a key step in implementation of OMB Memorandum M-22-18, which was issued pursuant to Section 4 of the Cyber EO and directs agencies to only use software that complies with Government-specified secure software development practices (the “OMB Memorandum”).  Specifically, and among other requirements, the OMB Memorandum directs that software providers self-attest that the software developer follows the secure development processes described by NIST Secure Software Development Framework (SP 800-218) and the NIST Software Supply Chain Security Guidance.  The key provisions of the OMB Memorandum are discussed in more detail in our prior blog

Scope.  The OMB Memorandum applies to all software (other than agency-developed software) developed or experiencing major version changes to be operated “on the agency’s information systems or otherwise affecting the agency’s information.”  CISA’s draft common form further specifies that the “following software requires self-attestation:

  1. Software developed after September 14, 2022;
  2. Existing software that is modified by major version changes […] after September 14, 2022; and
  3. Software to which the producer delivers continuous changes to the software code (such as software-as-a-service products or other products using continuous delivery/continuous deployment).”

Continue Reading April 2023 Developments Under President Biden’s Cybersecurity Executive Order and National Cybersecurity Strategy

On February 4, 2022, the National Institute of Standards and Technology (“NIST”) published its Recommended Criteria for Cybersecurity Labeling for Consumer Internet of Things (IoT) Products (“IoT Criteria”).  The IoT Criteria make recommendations for cybersecurity labeling for consumer IoT products, in other words, for IoT products intended for personal, family, or household use.

The purpose of the publication, as described by NIST, is to identify “key elements of a potential labeling scheme.”  The publication makes clear, however, that the scheme would not be established or managed by NIST, but rather “by another organization or program,” referred to in the publication as the “scheme owner.”  The identity of the scheme owner is undetermined, but it “could be a public or private sector” entity.

The publication of the IoT Criteria represents another step toward a national cybersecurity labeling scheme for consumer IoT products.  We should expect that the framework established by NIST in this publication will serve as a model for these requirements.

IoT Criteria Framework.  The IoT Criteria establish recommended considerations for three key aspects of a potential cybersecurity IoT labeling program:

  1. Baseline Product Criteria
  2. Labeling
  3. Conformity Assessments

Continue Reading NIST Publishes Recommended Criteria for Cybersecurity Labeling for Consumer Internet of Things (IoT) Products

On January 4, 2022, the Federal Trade Commission published a warning to companies and their vendors to take reasonable steps to remediate the Log4j vulnerability (CVE-2021-44228).  The FTC provided a list of recommended remedial actions for companies using the Log4j software.  The FTC’s warning references obligations under the FTC Act and Gramm Leach Bliley Act

On December 15, 2021, the U.S. Department of Homeland Security Cybersecurity & Infrastructure Security Agency (“CISA”) announced the publication of a warning for “critical infrastructure owners and operators to take immediate steps to strengthen their computer network defenses against potential malicious cyber attacks” before the upcoming holiday season.  CISA’s warning emphasizes that “[s]ophisticated threat actors