Cravath Taps DOJ National Security Vet Amid CFIUS Crackdown

WASHINGTON, D.C. – June 01, 2026 – Cravath, Swaine & Moore LLP has announced the hiring of Michael Patrick Daly, a veteran official from the U.S. Department of Justice’s National Security Division, as a partner in its Washington, D.C. office. The move is a clear signal of the intensifying demand for elite legal expertise at the volatile intersection of global commerce and national security.

Daly joins Cravath’s Corporate Department after more than a decade at the DOJ, where he was deeply involved in the government’s expanding oversight of foreign investment. His arrival at the prestigious law firm underscores a powerful trend across the legal industry: as geopolitical tensions rise, national security counsel is becoming an indispensable component of high-stakes corporate transactions.

“Mike brings deep experience in national security and foreign investment matters central to the regulatory process our clients consider when pursuing cross-border investments,” said Faiza J. Saeed, Cravath’s Presiding Partner, in a statement. “We are thrilled to welcome him to Cravath.”

The New Frontline of Corporate Law

The timing of Daly’s transition to the private sector is particularly significant. The regulatory landscape he helped shape from within the government is now more complex and perilous for businesses than ever before. The Committee on Foreign Investment in the United States (CFIUS), the inter-agency body that reviews the national security implications of foreign investments, has become a formidable gatekeeper for cross-border deals.

Under the prevailing philosophy that “economic security is national security,” CFIUS has expanded its authority and enforcement posture. The committee now scrutinizes a vast array of transactions, with a particular focus on investments in critical technologies like artificial intelligence and semiconductors, as well as companies holding sensitive personal data of U.S. citizens. Recent years have seen record-breaking fines for non-compliance and an aggressive approach to reviewing deals that were not voluntarily filed for review.

Furthermore, the U.S. government's focus is no longer limited to inbound investment. The recent passage of the 2026 National Defense Authorization Act (NDAA) introduced expansive new restrictions on outbound U.S. investments in certain sensitive sectors abroad. This has created a two-way regulatory gauntlet that companies must navigate, making advisors with inside-the-beltway experience an invaluable asset.

A Career Forged in National Security

Daly’s career at the DOJ places him at the center of these developments. Most recently, he served in the leadership office of the National Security Division (NSD), advising the Assistant Attorney General on matters including CFIUS, the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector (often called Team Telecom), and the nascent Outbound Investment Security Program.

From 2019 to 2024, he was an Attorney Advisor within the NSD’s Foreign Investment Review Section (FIRS), the DOJ’s operational hub for CFIUS matters, and served as its Acting Deputy Chief. Before that, Daly spent six years in the Special Operations Unit of the NSD's Office of Intelligence, handling sensitive counterintelligence and anti-terrorism operations. This dual background in both intelligence operations and foreign investment review gives him a comprehensive understanding of the threat landscape that informs U.S. regulatory actions. His work has been recognized with three Assistant Attorney General Awards for Excellence.

“Cravath is widely known for its depth of expertise across the most complex transactional and regulatory matters,” Daly stated. “I am delighted to join this premier team, and look forward to working alongside them in guiding clients through their most consequential cross-cross-border investments.”

The Government-to-Big-Law Pipeline

Cravath’s recruitment of Daly is part of a larger, fiercely competitive arms race among elite law firms to attract top government talent. As regulatory hurdles multiply, firms are building out specialized practices staffed by the very officials who once designed and enforced the rules. This “revolving door” trend highlights the premium placed on firsthand knowledge of agency priorities and processes.

This is a well-established strategy for Cravath. The firm's D.C. office already boasts a formidable roster of former high-ranking officials, including Jeffrey A. Rosen, former Acting U.S. Attorney General; Noah Joshua Phillips, former FTC Commissioner; and Elad L. Roisman, former Acting Chairman of the SEC. Daly’s national security credentials add a critical new dimension to this stable of regulatory experts.

Competitors have made similar strategic moves. Paul, Weiss famously brought on John P. Carlin, a former Assistant Attorney General for the DOJ's National Security Division. Skadden, Arps, Slate, Meagher & Flom counts Donald L. Vieira, a former chief of staff of the NSD, among its partners. This industry-wide pattern demonstrates a consensus that navigating Washington is now as crucial as navigating Wall Street.

For global corporations and private equity firms, the stakes are enormous. A misstep in the CFIUS process can lead to a deal being blocked, unwound, or saddled with costly mitigation measures. With Daly, Cravath is betting it can offer clients a decisive edge in managing these risks, transforming a potential deal-killer into a navigable challenge. His expertise will be critical for clients in the technology, telecommunications, and critical infrastructure sectors, which are squarely in the regulators' crosshairs. As global supply chains are re-evaluated and international M&A continues, the need for sophisticated counsel that blends legal acumen with deep national security insight has never been greater.