John P. Carlin, Nicholas J. Spiliotes, Panagiotis C. Bayz, Charles L. Capito III, and Sophia M. Brill
Global Risk + Crisis Management, National Security, and Privacy + Data Security
Recently proposed legislation would substantially overhaul current law governing the Committee on Foreign Investment in the United States (CFIUS) by dramatically expanding CFIUS’ authorities and calling for CFIUS to take cybersecurity and information security into account when authorizing foreign investments in U.S. businesses.
The proposed legislation would substantially broaden CFIUS’ focus and strengthen its enforcement capabilities. In particular, the legislation would place a heavy emphasis on cybersecurity and information security concerns:
Expansion of CFIUS Jurisdiction
The legislation would also expand CFIUS’ jurisdiction in other high-tech sectors. In particular:
Other measures would strengthen CFIUS’s overall enforcement authorities:
The legislation substantially revises the CFIUS filing and review process. Some of these revisions could potentially benefit businesses:
It is premature at this stage to predict what the bill’s prospects are for becoming law and when. But given the lineup of bipartisan co-sponsors and statements by several Trump administration officials, including Treasury Secretary Steven Mnuchin, that the CFIUS process needs to be strengthened, this legislation will certainly be worth monitoring carefully as the 2017 legislative session begins to draw to a close.
©1996-2018 Morrison & Foerster LLP. All rights reserved.