From looming quantum threats to the unraveling of consumer genetic privacy, this week in tech policy underscores just how fast-moving this space has become. As nations race to secure AI dominance and brace for the coming of Q-Day, U.S. lawmakers are also grappling with urgent challenges at home—from digital sovereignty and surveillance to cybersecurity and data protection. In this edition, we break down Trump’s legally fraught TikTok deal, the SEC’s internal rift over suing Elon Musk, ICE’s sprawling web of online surveillance, and the privacy fallout of 23andMe’s bankruptcy. Plus, don’t miss our coverage of two key hearings: one on improving data interoperability for veterans’ care and another on leveraging AI in cyber defense.

In this week’s Nimitz Tech:

• Surveillance: ICE’s surveillance contractor is tracking activity across 200+ online platforms — from OnlyFans to Roblox — raising new concerns about unchecked government monitoring.

• Data: With 23andMe filing for bankruptcy, your DNA could be on the auction block — it’s time to delete your data.

• AI: AI will reshape every nation’s economy—and those without their own systems risk falling behind, warns Mistral’s CEO.

WHO’S HAVING EVENTS THIS WEEK?

Monday, March 24th

• 💾 House Hearing: “Closing the Data Gap: Improving Interoperability Between VA and Community Providers.” House Committee on Veterans' Affairs, Subcommittee on Technology Modernization. Hearing scheduled for 3:00 PM in 360 Canon HOB. Watch here.

Tuesday, March 25th

• 💻️ Senate Hearing: “Harnessing Artificial Intelligence Cyber Capabilities” Senate Committee on Armed Services, Subcommittee on Cybersecurity. Hearing scheduled for 3:30 PM in 232A Russell SOB. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• President Trump’s proposed deal to keep TikTok running in the U.S. — by involving Oracle while allowing China-based ByteDance to retain a role — appears to violate a 2024 law mandating full Chinese divestiture of the app. Despite bipartisan opposition from China hawks in Congress, the law gives Trump broad authority to define what qualifies as acceptable divestiture, and courts are unlikely to intervene. Legal experts note that Trump has already sidestepped the law by allowing TikTok to stay online without proper certification of ownership negotiations, leaving lawmakers with limited tools to enforce compliance. With Congress reluctant to challenge the White House directly, the political tide may even shift toward retroactively legitimizing the deal — a move critics say would undermine efforts to curb Chinese influence.

• In a previously undisclosed vote, the U.S. Securities and Exchange Commission voted 4-1 in January to sue Elon Musk over his delayed disclosure of Twitter stock purchases, with interim SEC head Mark Uyeda casting the sole dissenting vote. The agency’s case alleges Musk violated securities laws by disclosing his 2022 stake in Twitter 21 days late, allowing him to save $150 million — a claim Uyeda and fellow Republican Hester Peirce reportedly questioned, particularly regarding the financial penalties. Uyeda’s push to ensure the case wasn’t politically motivated, including a failed effort to have enforcement staff sign pledges, highlights internal tensions as the SEC transitioned to Republican leadership. While legal experts debate the timing and severity of the case, many agree that failing to pursue it could have damaged the SEC’s credibility in enforcing market fairness, especially amid Musk's longstanding clashes with the agency.

• A leaked list obtained by 404 Media reveals that ShadowDragon, a contractor for ICE and other U.S. agencies, uses its SocialNet tool to monitor over 200 websites and apps — including Bluesky, OnlyFans, Discord, Meta platforms, and Roblox — collecting public data to map individuals’ online lives and connections. Though marketed as aiding criminal investigations and protest monitoring, the system has triggered alarm among privacy experts and tech companies, many of whom say ShadowDragon’s scraping likely violates their terms of service. The tool’s use gained attention amid recent controversial immigration enforcement actions and a broader push by U.S. officials to surveil foreign nationals' social media. Critics argue SocialNet reflects a growing, opaque surveillance ecosystem with little oversight, where public online activity can be quietly turned into government intelligence.

National

• Following 23andMe’s bankruptcy filing, privacy experts and California's attorney general are urging the company’s 15 million users to delete their genetic data to prevent it from being sold or misused during the company’s asset sale. Once valued at $6 billion, the genetic testing pioneer has faced mounting business and security issues, including a 2023 data breach that exposed sensitive information from 7 million users. While 23andMe claims its privacy policies remain in effect, its terms allow for personal data — including DNA — to be transferred or sold during bankruptcy proceedings, raising concerns about how future owners might use it. California’s privacy laws give residents (and increasingly, people in other states) the right to delete their data, and advocates stress the urgency of doing so given the deeply personal and lifelong implications of compromised genetic information.

• Q-Day marks the moment quantum computers gain the power to break today’s encryption, exposing everything from personal emails to military secrets. Though experts say there’s a one-in-three chance it could happen before 2035, some suspect it may already have occurred in secret. Quantum computers, unlike classical ones, can solve complex problems in parallel using qubits, and once scaled, they could rapidly crack RSA and other encryption protocols foundational to digital security. Governments, tech giants, and hackers are racing to harness or defend against this threat, prompting efforts like NIST’s post-quantum encryption standards. Still, many critical systems—like power grids, military networks, and cryptocurrencies—remain vulnerable, and if Q-Day arrives before the world upgrades its defenses, the fallout could be catastrophic, ushering in a chaotic, post-privacy age defined by mistrust, cyberattacks, and digital upheaval.

International

• Arthur Mensch, CEO of French AI startup Mistral, predicts that artificial intelligence will drive double-digit GDP growth across all countries in the coming years, urging nations to develop sovereign AI infrastructure to avoid economic dependence. Comparing AI's transformative power to that of electricity a century ago, Mensch emphasized that unlike electricity, AI also carries cultural and ideological influence, making national involvement crucial. Speaking alongside Nvidia CEO Jensen Huang on a podcast, Mensch stressed the strategic importance of AI in public services, agriculture, and defense, and reiterated his belief in open-source models as essential for innovation. Founded in 2023, Mistral competes with OpenAI and Anthropic and has gained attention for its fast, open-source large language models and plans to go public.

FOR FUN

• 📿Trinket Swap | 3/29 @ 2 p.m. | $5 donation | Alexandria

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Additionally, if you are interested in our original publication on veterans affairs policy, check it out below: