The striking thing about both letters is that neither disagrees with the FSB. The report repeatedly insists that its practices are a non-prescriptive "menu," and both associations endorse that framing. The fight is over the document's afterlife. Non-binding international guidance has a way of migrating into national supervisory expectations and examiner workpapers, where "you may adapt these" becomes "explain why you deviated." Sound Practice 3 is the perfect exhibit: it directs…

What's striking here is the timing. A quantum computer that can actually break today's encryption is still probably years out, so it's tempting to call this premature. But the threat estimate has moved fast, and the acceleration is the real story. The number of qubits thought necessary to break RSA-2048, the public-key encryption that secures much of the internet, stood at roughly 20 million in 2019, fell to under a million by 2025, and a research group now claims under 100,000. Each…

In Chapter 5, the CEA frames AI as a general-purpose technology rather than an industry, drawing the right comparison to steam, electricity, and the Internet rather than to any single sector's productivity boom. The invocation of is a useful corrective to the reflexive assumption that labor-saving technology must reduce employment; the historical record on steam, electricity, and computing supports the CEA's view. But the range of GDP impact estimates - from 1 to 45 percent over ten years -…

Director Guynn's testimony offers a useful illustration of what sector-specific AI oversight looks like in practice. The Fed is simultaneously learning the technology, deploying it in its own supervisory functions, and supervising its use by regulated institutions. The commitment to keeping judgment and decisionmaking with subject matter experts reflects the right instinct: AI can surface anomalies and process vast amounts of data, but it cannot weigh credibility or assess intent. His soccer…