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Regulation & Policy

The White House wants regulators to go easy for a year on companies that report cyberattacks

Companies that admit to a cyberattack often fear the regulator as much as the hacker. The White House's artificial intelligence task force wants to ease that fear, at least for a year.

The task force held its second meeting on Thursday, November 12. In a statement about the meeting reported by Cybersecurity Dive, it urged federal agencies to limit regulatory liability for companies that report security flaws and cyber incidents in good faith. The relief should last at least 12 months, it said, and could be extended as officials reassess the risk.

Cybersecurity Dive and Bloomberg both reported the recommendation. The pitch to business is simple: tell the government early, and you should not be punished for telling.

The reasoning is blunt. According to Cybersecurity Dive, the task force said the cyber risk environment has changed, and that organizations that had reasonable protections only a short time ago are now more vulnerable. The backdrop is AI tools that can find and exploit software weaknesses far faster than before. Older enforcement standards, the group said, may be outdated.

What the task force proposed

The core idea, as quoted by Cybersecurity Dive, is that a good-faith disclosure should not expose a company to "punitive regulatory or administrative action." The aim is to avoid a chilling effect on reporting. The relief would apply only where lawful, practical and consistent with the public interest, including public health and safety.

The group also backed a long-term renewal of the Cybersecurity Information Sharing Act of 2015. That law shields companies from lawsuits and regulatory penalties when they share threat data with agencies such as the FBI or NSA.

It also supported a coming incident-reporting rule from the Cybersecurity and Infrastructure Security Agency (CISA), the federal cyber-defense agency. Its condition: the rule should be clear and cut down on duplicate filings, a long-running business complaint about overlapping cyber rules.

Cybersecurity Dive reported that officials are also discussing a voluntary channel, built with industry, for reporting AI-related incidents. The government would analyze the reports and share defensive lessons back with companies. National Cyber Director Sean Cairncross and Pentagon research official Emil Michael discussed it with industry leaders.

According to the outlet, the statement said the NSA and the National Institute of Standards and Technology have been testing new frontier AI models with major labs. Commerce Secretary Howard Lutnick was among the officials who described work on AI security risks. Office of Personnel Management Director Scott Kupor is working with Cairncross on security help for small and mid-sized businesses.

Why it is less than it sounds

This is a recommendation, not a rule, an executive order or a law. Each agency can adopt it or ignore it. No agency has been reported as committing to it. As described, it covers regulatory and administrative penalties for cyber incidents, not other AI harms.

The bigger legal shield is on a short fuse. The 2015 information-sharing law lapsed during last year's government shutdown. It has survived since on stopgap spending bills, and its current extension runs out December 11.

A coalition of 35 industry groups, including the U.S. Chamber of Commerce and the American Bankers Association, wrote to the leaders of the House and Senate Armed Services committees on November 1, Government Executive reported. They asked for a 10-year renewal through 2035. A dispute over a free-speech provision sought by Senator Rand Paul has held up agreement.

The CISA rule is late too. The 2022 law behind it would require critical infrastructure operators to report major incidents within 72 hours and ransom payments within 24 hours. CISA missed its October 2025 deadline and later aimed for September 2026. The task force still calls the rule forthcoming.

CISA itself looks sidelined. Cybersecurity Dive reported that the White House's account of the meeting did not say whether the agency took part, and that the White House did not respond to its question about CISA's role. Former CISA officials told the outlet earlier this month that leaving out the agency closest to utilities and hospitals risks confusing, overlapping guidance. CISA has lost staff under the current administration.

What it means for companies and investors

The task force began with a sterner tone. It is chaired by Director of National Intelligence Jay Clayton and has a 120-day mandate. After its first meeting in October, it told AI labs to report rogue behavior by their models and fix it, The Next Web reported. Its leaders warned that delayed notification or a failure to take responsibility "will not be tolerated."

The Next Web, citing Semafor, reported that Anthropic had disclosed to the task force that one of its test models submitted visa applications. The group has still not defined what counts as an AI incident, set reporting deadlines or spelled out penalties.

Thursday's recommendation adds a reward to that warning: report early and regulators should go easier. For companies, the cost of a breach often includes fines and investigations, not just cleanup. A year-long pause could shrink that bill, but only where an agency formally opts in.

Boards and security chiefs should treat it as a signal, not protection. Three things will show whether it has teeth. First, whether Congress renews the information-sharing law before December 11. Second, whether major regulators publish their own safe-harbor policies. Third, what the voluntary AI reporting channel actually asks for.

Until then, the incentive to disclose has improved on paper. The legal certainty companies say they need has not.