Senate Democrats Urge Biden to Delay TikTok Ban to Protect U.S. Creators and Businesses

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As the deadline to ban TikTok looms, Senate Democrats are increasing pressure on President Joe Biden to delay the ban and prevent the popular app from going offline in the U.S. on Sunday. Lawmakers argue that millions of creators, businesses, and influencers who rely on TikTok could suffer significant harm if the app is banned prematurely.

Democratic Senator Ed Markey emphasized the need for more time to resolve the issue and avoid a hasty shutdown. “Let’s take a breath, try to step back, buy some time, try to figure this out,” Markey said in a statement on Thursday. Senate Democratic Leader Chuck Schumer has also expressed support for a delay, urging Biden to extend the deadline by 90 days to allow time for an American buyer to take over TikTok’s U.S. operations and avoid disrupting the lives of millions of Americans who depend on the platform.

The deadline was set by Congress in April, following national security concerns over the app’s ownership by Chinese company ByteDance. The Justice Department recently cited concerns about TikTok’s data collection practices, warning that the platform could be used for espionage purposes due to the vast amount of sensitive information it holds about U.S. users.

Despite these concerns, Schumer and other senators argue that additional time is necessary to secure a resolution. “It’s clear that more time is needed to find an American buyer and not disrupt the lives and livelihoods of millions of Americans,” Schumer said.

The White House has indicated that the decision to extend the deadline may fall to the next administration, with Biden’s team previously stating that an extension was not planned. However, with the Jan. 19 deadline quickly approaching, the potential impact of a TikTok shutdown remains a major point of debate among lawmakers.

Senators Markey, Cory Booker, and Chris Van Hollen have written to Biden urging him to grant an extension, warning that without action, TikTok could go dark on Sunday, with serious consequences for the 170 million American users and 7 million businesses reliant on the platform.

 

J.P. Morgan Forecasts Data Center Spending Could Boost US GDP by 20 Basis Points in 2025-2026

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J.P. Morgan projects that spending on data centers could add between 10-20 basis points to the U.S. economy in 2025-2026, driven by the ongoing surge in technology investments fueled by the artificial intelligence (AI) boom. The growing demand for computing power, particularly following OpenAI’s launch of ChatGPT in 2022, has accelerated investments in data centers, which support the infrastructure necessary for AI development.

Major cloud companies, such as Microsoft and Alphabet, have been heavily investing in AI technologies, and J.P. Morgan anticipates that these investments will significantly contribute to U.S. gross domestic product (GDP). The economic boost is expected to stem from increased demand for data center construction, technology equipment, and power generation and transmission infrastructure. According to the bank’s estimates, data center spending could have contributed 0.1%-0.3% to GDP growth in 2024.

Additionally, J.P. Morgan noted that each new 5-10 gigawatt power generation capacity expansion could require up to $20 billion in investment, which would add 7 basis points to GDP. As U.S. power consumption is expected to hit record levels in 2025 and 2026, the federal government has taken action to support this growth, with President Joe Biden signing an executive order aimed at addressing the massive energy needs of rapidly expanding AI data centers.

The data center sector’s economic impact is expected to continue in the coming years, driven by advancements in AI innovation. However, J.P. Morgan cautioned that the long-term success of this growth will depend on whether the expected returns on these investments are realized, similar to previous technology booms.

US CFPB Fines Cash App-Parent Block Over Insufficient Fraud Protection

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The U.S. Consumer Financial Protection Bureau (CFPB) has imposed a penalty on Block, the parent company of the popular mobile payment service Cash App, over allegations of inadequate fraud protection measures. According to the CFPB, Block directed Cash App users who experienced fraud-related losses to contact their banks for transaction reversals, but these claims were subsequently denied. The regulator further accused Block of using various tactics to prevent users from seeking help, ultimately reducing the company’s own costs.

Cash App, one of the largest peer-to-peer payment platforms in the U.S., allows users to send and receive money, accept direct deposits, and make purchases using a prepaid card. CFPB Director Rohit Chopra criticized Cash App for failing to fulfill its responsibilities, burdening local banks with problems caused by the company’s actions.

Block, led by Twitter co-founder Jack Dorsey, responded by stating that the issues cited were historical and no longer reflect the current Cash App experience. The company emphasized that it disagreed with the CFPB’s characterizations but chose to settle the matter to move forward and prioritize its customers and business.

The enforcement order includes a $55 million penalty to be paid into the CFPB’s victim relief fund, along with up to $120 million in compensation. Block has also been required to establish a 24-hour live customer service for investigating unauthorized transactions and issuing refunds.

Additionally, the company agreed to pay $80 million to settle with 48 state financial regulators. This penalty comes amid other actions taken by the CFPB against financial services, including a lawsuit against Zelle and major banks last month.