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Chris Giancarlo endorsed the administration's restricted contractor model, walking back his earlier proposal for aggressive privateering letters of marque.
Key point 1 of 3
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Ex-CFTC Chair Chris Giancarlo praised the White House's Aug. 12 cyber memo, calling the contractor-led counter-hacking initiative "just about right."
Key point 2 of 3
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The administration rejected earlier proposals for broad letters of marque, requiring contractors to adhere to the Computer Fraud and Abuse Act.
Key point 3 of 3
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Authorized operations require written DOJ and DHS approval, an escrow or bond of at least $1 million, and exclude state-run hacking entities.
Context
After the $1.4 billion Lazarus Group attack on Bybit in early 2025, industry figures pushed for private sector authorization to hack back and recover stolen crypto assets.
Why it matters
Cybersecurity contractors face tight operational guardrails, six-figure bonding conditions, and federal oversight instead of receiving sweeping statutory immunity.
What to watch
The public release or implementation of formal DOJ and DHS operating procedures, which passed an initial Oct. 11 deadline without public disclosure.
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