This is the seventh blog in a series of Covington blogs on cybersecurity policies, executive orders (“EOs”), and other actions of the Trump Administration.  The sixth blog is available here and our initial blog is available here.  This blog describes key cybersecurity developments that took place in August, September, and October 2025. 

NIST Publishes Second Draft of Foundational Cybersecurity Activities for IoT Product Manufacturers (NIST IR 8259)

On September 30, National Institute of Standards and Technology (“NIST”) released the second public draft of its NIST Internal Report (“IR”) 8259, Foundational Cybersecurity Activities for Internet of Things (“IoT”) Product Manufacturers.  This publication outlines foundational cybersecurity activities and serves as a guide for IoT manufacturers to bolster the cybersecurity of their IoT products.  The goal of the publication is to allow manufacturers to meet both regulatory standards and customer needs for secure deployment of their products.  Key updates include the inclusion of “Activity 0: Prioritize Cybersecurity and Maintain Cybersecurity Posture,” emphasizing the necessity for manufacturers to embed cybersecurity considerations throughout their product development processes.  This activity addresses the need for a robust internal cybersecurity posture to protect both IoT products and the organizational systems.  The draft also details the introduction of new activities tailored to better define IoT product cybersecurity capabilities, focusing on aligning these capabilities with customer needs and goals.  Manufacturers are encouraged to use industry frameworks, such as NIST’s Cybersecurity Framework (“CSF”) and Risk Management Framework (“RMF”), to evaluate and mitigate risks.  Additionally, guidance on secure software development and supply chain risk management has been expanded, referencing NIST Special Publication (“SP”) 800-161 Rev 1.  The draft underscores the importance of continuous communication about software updates and product support to aid customers in maintaining IoT product cybersecurity throughout its lifecycle, including guidelines for end-of-life product management and decommissioning.  

Cybersecurity Maturity Model Certification (CMMC) Program Procurement Final Rule Announced

On September 10, 2025, DoD published the final version of the Cybersecurity Maturity Model Certification (“CMMC”) Defense Federal Acquisition Regulation Supplement (“DFARS”) Procurement Rule (“Procurement Rule” or “Rule”) in the Federal Register.  We wrote about the Rule in more detail here.  This Rule imposes the contractual requirements associated with the CMMC Program Rule that was published in final form in October 2024.  The Procurement Rule will become effective sixty days after publication, on November 10, 2025 and will be implemented in a phased approach.  

The CMMC Program is expected to have significant impacts on the federal supply chain, imposing certification requirements on all contractors and subcontractors with DoD contracts that include the relevant DFARS clause (currently DFARS 252.204–7021) and under which Federal Contract Information and/or Controlled Unclassified Information is processed, stored, or transmitted on contractor information systems.  We have developed a toolkit of additional resources on CMMC available here.

CISA Delays Cyber Incident Reporting Rule for Critical Infrastructure

The U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) plans to delay the publication of its much-anticipated cybersecurity incident reporting rule implementing the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”).  We wrote about this update here.  According to an entry on the Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions, released on September 4, 2025, CISA currently plans to publish the Final Rule sometime in May 2026, and it likely will not go into effect until sometime afterwards.

As discussed in a previous blog post, CIRCIA established two cyber incident reporting requirements that are broadly applicable to covered entities in one of the 16 U.S. critical infrastructure sectors.  When the Final Rule goes into effect, covered entities will be required to report covered cyber incidents within 72 hours of discovery and covered ransom payments within 24 hours.  CISA published the Notice of Proposed Rulemaking (“Proposed Rule”) on April 4, 2024, and the statute required CISA to publish the Final Rule within 18 months of the Proposed Rule.  Accordingly, the Final Rule was previously expected to arrive by October 2025.

Cybersecurity Information Sharing Act of 2015 Allowed to Sunset

The Cybersecurity Information Sharing Act of 2015 (“CISA 2015”), which provided protections for sharing cybersecurity threat information with the federal government and others, officially sunset on September 30, 2025 pursuant to the law’s original sunset date after efforts to re-authorize it did not succeed.  We wrote about this update here.  The law created a cybersecurity information sharing framework and established certain protections – including disclosure under FOIA, limits to liability, and limits to waiver of legal privilege – for sharing that information with private parties and the federal government.  While the expiration does not prohibit industry participants from ongoing or future sharing of cyber threat information with the federal government and others, private sector companies can no longer rely on the liability protections in CISA 2015 when doing so. 

Although several bills had been introduced in recent months to re-authorize CISA 2015’s protections, including some that would have adjusted or altered CISA 2015’s provisions, none of the bills significantly progressed before the current U.S. government shutdown.  Going forward, organizations that share cyber threat information should consider how the absence of CISA 2015’s protections might impact their sharing practices and monitor for future legislative efforts to re-authorize CISA 2015 or create a similar replacement framework for information sharing. 

NIST Releases Long Awaited Revision to the Digital Identity Guidelines

On August 1, NIST announced the release of SP 800-63 Revision 4, Digital Identity Guidelines, which can be found here.  This update comes after four years of drafting and thousands of public comments. The stated goal of the release is for the updated guidelines to “make navigating the digital world more secure and convenient.”  It explains that “a digital identity is intended to establish trust between the holder of the digital identity and the person, organization, or system interacting with the online service” and notes that online services require secure digital identity solutions to be secure themselves. 

NIST explained that the new guidelines intend to “respond to the changing digital landscape” since its last revision in 2017.  NIST intends for this revision to focus on risk management adapted from real-world lessons learned.  Some of the major changes include expanded fraud requirements, identity proofing processes, controls for deep fakes, and changes to the password composition and rotation expectations.  It is possible that agencies could choose to incorporate some or all aspects of these guidelines into contracts for the acquisition of software services and, ultimately, contractors who are required to comply with the Digital Identity Guidelines will need to ensure their services comply with the requirements of Revision 4. 

CISA Updates Guidance for Minimum Elements of Software Bills of Materials

On August 25, CISA announced the release of draft guidance for 2025 Minimum Elements for a Software Bill of Materials (“SBOM”).  This has initially been released as a draft here.  As background, the first SBOM minimum elements guide was released in 2021 in response to a Biden administration EO.  CISA was seeking feedback on the draft guidance and published its request for comment here.  The new minimum elements aim to reflect expanded capabilities and advancement of SBOM tooling since the inception of the guidance in 2021.  Although not required by law, CISA hopes that these new minimum elements will continue to promote SBOMs as a way to provide information to software users and to better inform supply chain risk management in their software supply chains.

NIST Internet of Things Internal Report

On August 25, the NIST National Cybersecurity Center published the final version of the NIST IR 8349, Methodology for Characterizing Network Behavior of IoT Devices that it announced here.  The report works in tandem with the Cybersecurity Center’s project Securing Home IoT Devices Using Manufacturer Usage Description (“MUD”), through which companies create MUD profiles for their IOT devices and a companion “MUD-PD” tool released by NIST to help with the characterization of IoT devices.  The goal of the report is to create a system for characterizing IoT devices to enable a better understanding of IoT device network behavior, which will allow for the more effective implementation of appropriate network access controls, such as firewall rules or access control lists.  The report walks through the new network traffic capture methodology that is used for the MUD profile, then discusses the various use cases, network communications, and privacy implications of devices.

New NIST Cryptography Standard for Small Devices

On August 13, NIST finalized SP 800-232, Ascon-Based Lightweight Cryptography Standards for Constrained Devices: Authenticated Encryption, Hash, and Extendable Output Functions, here.  This document identifies four recommended cryptography standards specifically adapted for small devices, which NIST describes as ready for use to protect data created and transmitted by IoT devices.  These algorithms require less computing power and time than more conventional cryptographic methods.  NIST envisions that this will protect information created and transmitted by billions of devices of IoT devices as well as other small electronics, such as RFID tags and medical implants.

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Photo of Susan B. Cassidy Susan B. Cassidy

Susan Cassidy co-chairs Covington’s Aerospace and Defense Industry Group, and has been advising government contractors for more than 35 years on the requirements imposed on companies contracting with the U.S. Government.

Susan’s practice focuses on the intersection of cybersecurity, national security, and supply…

Susan Cassidy co-chairs Covington’s Aerospace and Defense Industry Group, and has been advising government contractors for more than 35 years on the requirements imposed on companies contracting with the U.S. Government.

Susan’s practice focuses on the intersection of cybersecurity, national security, and supply chain risk management for companies that sell products and services to the U.S. Government. Susan advises contractors at all phases of the procurement cycle, and regularly:

advises clients on compliance obligations imposed by the FAR, DFARS, and other agency regulatory requirements;
leads internal and government False Claims Act (FCA) investigations addressing allegations of violations of government cybersecurity, national security, supply chain, quality, and MIL-SPEC requirements; and
advises clients who have suffered a cyber breach where U.S. government information may have been impacted.

In her work with global, national, and start-up contractors, Susan advises companies on all aspects of government supply chain issues including:

Government cybersecurity requirements, including the Cybersecurity Maturity Model Certification (CMMC), DFARS 252.204-7012, FedRAMP, controlled unclassified information (CUI), and NIST SP 800-171 requirements;
Evolving sourcing issues such as Section 889, counterfeit part requirements, Section 5949 semiconductor product and service restrictions, and limitations on sourcing a variety of products from China; and
Federal Acquisition Security Council (FASC) regulations and product exclusions.

 

Susan previously served as senior in-house counsel for two major defense contractors (Northrop Grumman Corporation and Motorola Incorporated) and is Chambers rated in both Government Contracts and Government Contracts Cybersecurity. Chambers USA has quoted sources stating that “Susan’s in-house experience coupled with her deep understanding of the regulatory requirements is the perfect balance to navigate legal and commercial matters.”

Susan is a former Public Contract Law Procurement Division Co-Chair, former Co-Chair and current Vice-Chair of the ABA PCL Cybersecurity, Privacy and Emerging Technology Committee.

Susan’s pro-bono work extends to assisting veterans in a variety of matters, as well as providing advice to elderly clients on their wills and other end-of-life planning documents.

Photo of Ashden Fein Ashden Fein

Ashden Fein is a vice chair of the firm’s global Cybersecurity practice. He advises clients on cybersecurity and national security matters, including crisis management and incident response, risk management and governance, government and internal investigations, and regulatory compliance.

For cybersecurity matters, Ashden counsels…

Ashden Fein is a vice chair of the firm’s global Cybersecurity practice. He advises clients on cybersecurity and national security matters, including crisis management and incident response, risk management and governance, government and internal investigations, and regulatory compliance.

For cybersecurity matters, Ashden counsels clients on preparing for and responding to cyber-based attacks, assessing security controls and practices for the protection of data and systems, developing and implementing cybersecurity risk management and governance programs, and complying with federal and state regulatory requirements. Ashden frequently supports clients as the lead investigator and crisis manager for global cyber and data security incidents, including data breaches involving personal data, advanced persistent threats targeting intellectual property across industries, state-sponsored theft of sensitive U.S. government information, extortion and ransomware, and destructive attacks.

Additionally, Ashden assists clients from across industries with leading internal investigations and responding to government inquiries related to the U.S. national security and insider risks. He also advises aerospace, defense, and intelligence contractors on security compliance under U.S. national security laws and regulations including, among others, the National Industrial Security Program (NISPOM), U.S. government cybersecurity regulations, FedRAMP, and requirements related to supply chain security.

Before joining Covington, Ashden served on active duty in the U.S. Army as a Military Intelligence officer and prosecutor specializing in cybercrime and national security investigations and prosecutions — to include serving as the lead trial lawyer in the prosecution of Private Chelsea (Bradley) Manning for the unlawful disclosure of classified information to Wikileaks. Ashden is a retired U.S. Army officer.

Photo of Robert Huffman Robert Huffman

Bob Huffman counsels government contractors on emerging technology issues, including artificial intelligence (AI), cybersecurity, and software supply chain security, that are currently affecting federal and state procurement. His areas of expertise include the Department of Defense (DOD) and other agency acquisition regulations governing…

Bob Huffman counsels government contractors on emerging technology issues, including artificial intelligence (AI), cybersecurity, and software supply chain security, that are currently affecting federal and state procurement. His areas of expertise include the Department of Defense (DOD) and other agency acquisition regulations governing information security and the reporting of cyber incidents, the Cybersecurity Maturity Model Certification (CMMC) program, the requirements for secure software development self-attestations and bills of materials (SBOMs) emanating from the May 2021 Executive Order on Cybersecurity, and the various requirements for responsible AI procurement, safety, and testing currently being implemented under President Trump’s AI Executive Order. 

Bob also represents contractors in False Claims Act (FCA) litigation and investigations involving cybersecurity and other technology compliance issues, as well more traditional government contracting costs, quality, and regulatory compliance issues. These investigations include significant parallel civil/criminal proceedings growing out of the Department of Justice’s Cyber Fraud Initiative. They also include investigations resulting from False Claims Act qui tam lawsuits and other enforcement proceedings. Bob has represented clients in over a dozen FCA qui tam suits.

Bob also regularly counsels clients on government contracting supply chain compliance issues, including those arising under the Buy American Act/Trade Agreements Act and Section 889 of the FY2019 National Defense Authorization Act. In addition, Bob advises government contractors on rules relating to IP, including government patent rights, technical data rights, rights in computer software, and the rules applicable to IP in the acquisition of commercial products, services, and software. He focuses this aspect of his practice on the overlap of these traditional government contracts IP rules with the IP issues associated with the acquisition of AI services and the data needed to train the large learning models on which those services are based. 

Bob is ranked by Chambers USA for his work in government contracts and he writes extensively in the areas of procurement-related AI, cybersecurity, software security, and supply chain regulation. He also teaches a course at Georgetown Law School that focuses on the technology, supply chain, and national security issues associated with energy and climate change.

Photo of Ryan Burnette Ryan Burnette

Ryan Burnette is a government contracts and technology-focused lawyer that advises on federal contracting compliance requirements and on government and internal investigations that stem from these obligations. Ryan has particular experience with defense and intelligence contracting, as well as with cybersecurity, supply chain…

Ryan Burnette is a government contracts and technology-focused lawyer that advises on federal contracting compliance requirements and on government and internal investigations that stem from these obligations. Ryan has particular experience with defense and intelligence contracting, as well as with cybersecurity, supply chain, artificial intelligence, and software development requirements.

Ryan also advises on Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) compliance, public policy matters, agency disputes, and government cost accounting, drawing on his prior experience in providing overall direction for the federal contracting system to offer insight on the practical implications of regulations. He has assisted industry clients with the resolution of complex civil and criminal investigations by the Department of Justice, and he regularly speaks and writes on government contracts, cybersecurity, national security, and emerging technology topics.

Ryan is especially experienced with:

Government cybersecurity standards, including the Federal Risk and Authorization Management Program (FedRAMP); DFARS 252.204-7012, DFARS 252.204-7020, and other agency cybersecurity requirements; National Institute of Standards and Technology (NIST) publications, such as NIST SP 800-171; and the Cybersecurity Maturity Model Certification (CMMC) program.
Software and artificial intelligence (AI) requirements, including federal secure software development frameworks and software security attestations; software bill of materials requirements; and current and forthcoming AI data disclosure, validation, and configuration requirements, including unique requirements that are applicable to the use of large language models (LLMs) and dual use foundation models.
Supply chain requirements, including Section 889 of the FY19 National Defense Authorization Act; restrictions on covered semiconductors and printed circuit boards; Information and Communications Technology and Services (ICTS) restrictions; and federal exclusionary authorities, such as matters relating to the Federal Acquisition Security Council (FASC).
Information handling, marking, and dissemination requirements, including those relating to Covered Defense Information (CDI) and Controlled Unclassified Information (CUI).
Federal Cost Accounting Standards and FAR Part 31 allocation and reimbursement requirements.

Prior to joining Covington, Ryan served in the Office of Federal Procurement Policy in the Executive Office of the President, where he focused on the development and implementation of government-wide contracting regulations and administrative actions affecting more than $400 billion dollars’ worth of goods and services each year.  While in government, Ryan helped develop several contracting-related Executive Orders, and worked with White House and agency officials on regulatory and policy matters affecting contractor disclosure and agency responsibility determinations, labor and employment issues, IT contracting, commercial item acquisitions, performance contracting, schedule contracting and interagency acquisitions, competition requirements, and suspension and debarment, among others.  Additionally, Ryan was selected to serve on a core team that led reform of security processes affecting federal background investigations for cleared federal employees and contractors in the wake of significant issues affecting the program.  These efforts resulted in the establishment of a semi-autonomous U.S. Government agency to conduct and manage background investigations.

Photo of Krissy Chapman Krissy Chapman

Kristen “Krissy” Chapman is an associate in the firm’s Washington, DC office. She represents and advises clients on a range of cybersecurity, data privacy, and government contracts issues, including cyber and data security incident response and preparedness, cross-border privacy law, government and internal…

Kristen “Krissy” Chapman is an associate in the firm’s Washington, DC office. She represents and advises clients on a range of cybersecurity, data privacy, and government contracts issues, including cyber and data security incident response and preparedness, cross-border privacy law, government and internal investigations, and regulatory compliance.

Prior to joining the firm, Krissy served as a consultant in both the private and public sectors, advising clients across a range of industries, including transportation and infrastructure, life sciences and healthcare, and national security.

Photo of Grace Howard Grace Howard

Grace Howard is an associate in the firm’s Washington, DC office. She represents and advises clients on a range of cybersecurity, data privacy, and government contracts issues including cyber and data security incident response and preparedness, regulatory compliance, and internal investigations including matters…

Grace Howard is an associate in the firm’s Washington, DC office. She represents and advises clients on a range of cybersecurity, data privacy, and government contracts issues including cyber and data security incident response and preparedness, regulatory compliance, and internal investigations including matters involving allegations of noncompliance with U.S. government cybersecurity regulations and fraud under the False Claims Act.

Prior to joining the firm, Grace served in the United States Navy as a Surface Warfare Officer and currently serves in the U.S. Navy Reserve.