The Big Story 

Lawmakers on both sides of the aisle are seizing on new revelations about “sensual” chatbot conversations Meta deemed acceptable for children, dragging the tech giant and its checkered past on children’s safety back into the spotlight. 

© AP Photo/David Zalubowski

Meta, the parent company of Facebook and Instagram, has long faced scrutiny over the impact of its social media platforms on children.

As the company has expanded into artificial intelligence (AI) alongside the rest of the tech industry, it is grappling with both familiar and new, distinct problems. 

In an internal policy document obtained by Reuters, Meta featured examples of acceptable conversations between its AI chatbot and children.

It suggested they could engage in “conversations that are romantic or sensual” and describe them “in terms that evidence their attractiveness” — examples Meta said were erroneous and have since been removed. 

Sen. Josh Hawley (R-Mo.) slammed the tech giant Thursday, suggesting the revelations were “grounds for an immediate congressional investigation.”   

He followed up with a letter to Meta CEO Mark Zuckerberg on Friday, saying the Senate Judiciary Subcommittee on Crime and Counterterrorism was opening a probe into the company’s generative AI products. 

“It’s unacceptable that these policies were advanced in the first place,” Hawley wrote. “Meta must immediately preserve all relevant records and produce responsive documents so Congress can investigate these troubling practices.” 

Sen. Marsha Blackburn (R-Tenn.), who has long championed the Kids Online Safety Act, pointed to the revelations as underscoring the need for such legislation. A spokesperson said the senator supports an investigation into the company. 

“When it comes to protecting precious children online, Meta has failed miserably by every possible measure,” she said in a statement.

“Even worse, the company has turned a blind eye to the devastating consequences of how its platforms are designed. This report reaffirms why we need to pass the Kids Online Safety Act.” 

Check out a full report at TheHill.com next week.

Welcome to The Hill’s Technology newsletter, I’m Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

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Crypto Corner 

Federal Reserve ends crypto supervision program

© Alex Brandon, Associated Press

The Federal Reserve said Friday that it is ending a Biden-era program that sought to supervise crypto-related activities in banks.

“Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices,” it said in a press release.

The Fed said it is integrating the knowledge and supervision of these activities back into its normal processes and rescinding the letter creating the program.

The central bank established the Novel Activities Supervision Program in 2023 to address the risks associated with crypto and other activities.

It is the latest shift by the Trump administration in its approach to the crypto industry, which has received a much warmer welcome in Washington than under former President Biden.

Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.