The Biden administration is proposing regulations to prevent data brokers from selling Americans’ personal information to countries of concern, such as China, Russia, Iran, Cuba, Venezuela, and North Korea. The executive order issued by President Biden aims to protect bulk biometric, healthcare, and financial data collected by U.S. businesses from being transferred to foreign adversaries. This data, including genomic and geolocation information, is initially collected by tech companies and legally sold to data brokers, but can eventually end up in the hands of scammers and foreign intelligence agencies. The new regulations are expected to prevent this from happening by giving the Justice Department the authority to block countries that pose a threat to national security from accessing sensitive personal data.
The goal of the proposed rules is to prevent bad actors in specific nations from exploiting the free flow of data by acquiring large amounts of Americans’ personal information for malicious purposes. Personal information collected by U.S. companies can be leveraged by countries like China and Russia for cyber campaigns or attacks on dissidents and activists. The regulations, which will undergo reviews before being enacted, aim to set expectations for corporations and data brokers to prevent them from transferring data to actors identified as threats to U.S. national security. Enforcement measures will be taken against brokers who violate these rules, with outright prohibitions on data sales to countries like China and Russia.
The executive order issued by President Biden is part of a broader effort by the administration to counter the use of U.S. advances to undermine national security. The focus is on preventing foreign adversaries from accessing American technology and data through investments and business operations. The formation of the Disruptive Technology Strike Force last year was aimed at preventing Western technology from falling into the hands of bad actors, particularly in countries like China. While the executive order is a step towards protecting Americans’ data, officials emphasize that legislation is needed to establish privacy protections into law.
Officials believe that the executive order will strengthen the relationship between national security and corporate governance in protecting Americans’ data. However, they acknowledge that legislation is necessary to ensure long-term privacy protections. The regulations proposed by the Biden administration are intended to prevent personal information from being misused by foreign adversaries and to establish guidelines for corporations and data brokers to follow. By setting expectations and enforcing rules against transferring data to actors of concern, the government aims to safeguard Americans’ personal information from being exploited for malicious purposes.
