In his State of the Union address, President Obama announced that he had signed an executive order (EO) on cybersecurity. The order uses a standard-setting approach to improve cybersecurity. However, such a model will only impose costs, encourage compliance over security, keep the U.S. tied to past threats, and threaten innovation. While the EO does take some positive steps in the area of information sharing, these steps are hamstrung by the EO’s inability to provide critical incentives such as liability protection. As a result, this order could result in few modest changes, or it could result in substantial negative effects.
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