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They are trying really hard to scare people.
Eh, it's a bit like 23&Me: it's a new product space that regulatory groups never really thought about. Should school football fields fall under the purview of the FDA? The USDA? Anyone? NBT doesn't really go into the genetic details of the modification here, but the glyphosate-degrading genes have been out in crops for more than a decade now, and grass that doesn't grow very well isn't exactly the scariest trait out there. Still, grass may be better at cross-pollinating with other grasses than corn or potato.