Opinion: How the U.S. Government’s Efforts Can Improve Data Privacy and Protection in 2021
This year, cybersecurity incidents, such as data breaches, have led to the proliferation of identity theft and fraud, facilitated by a lack of digital identity verification credentials. Additionally, data privacy legislation has gained momentum at the state level and become a key area of concern for lawmakers and citizens alike. Meanwhile, artificial intelligence and blockchain technology are now widely recognized as useful tools to promote privacy. I’d like to share some thoughts on U.S. federal government efforts in 2021 to improve data privacy and protection via some key bills and task forces engaged in improving cyber governance this past year.
Information Transparency and Personal Data Control Act
In April 2021, I endorsed the Information Transparency and Personal Data Control Act, authored by U.S. Rep. Suzan Delbene (D-WA). The bill would create a national data privacy standard to protect people’s most personal information and bring data privacy laws into the 21st Century.
The United States urgently needs to pass a strong national data privacy law that will give confidence to all U.S. consumers that their data is safe and secure. Congresswoman Delbene’s legislation is an important step in the right direction, and these kinds of legislative initiatives are important to the continued growth of the online economy precisely because the online economy is built on trust and security.
It could be argued that Europe has taken the lead in this area with the implementation of the European Union’s General Data Protection Regulation, and I strongly believe the U.S. must pass similar legislation to establish reasonable and effective national data privacy standards, as well.
Improving Digital Identity Act
Then, on June 30, 2021, a bipartisan bill, the Improving Digital Identity Act of 2021, was introduced by U.S. Reps. Bill Foster (D-IL), John Katko (R-NY), Jim Langevin (D-RI), and Barry Loudermilk (R-GA). This bill, H.R. 4258, would:
Establish a task force to bring together key federal agencies with state and local government representatives to develop secure methods for government agencies to validate identity attributes to protect the privacy and security of individuals, and support reliable, interoperable digital identity verification tools in the public and private sectors.
The bill would also direct the National Institute of Standards and Technology (NIST) to create a new framework of standards to guide government agencies when providing digital identity verification services—placing an emphasis on privacy and security.
Establish a grant program within the U.S. Department of Homeland Security to allow states to upgrade the systems they use to issue drivers’ licenses and other types of identity credentials, and to support the development of secure, interoperable state systems that enable digital identity verification in accordance with the framework developed by NIST.
As the CEO of a company that lives and breathes privacy and security, I appreciate the vital nature of this legislative effort, and believe the U.S. Congress must tackle this issue head-on . . . the Improving Digital Identity Act is a critical leap forward.
Task Force on Artificial Intelligence and Verifying Identity while Preserving Privacy
Most recently, on July 16, 2021 the House Committee on Financial Services’ Task Force on Artificial Intelligence held a hearing entitled “I Am Who I Say I Am: Verifying Identity while Preserving Privacy in the Digital Age.” The hearing examined how federal and state governments can best set interoperability requirements and standards for artificial intelligence (AI) and other emerging technologies that can improve modern smartphones’ processing and sensor capabilities and enable the creation of a high quality and privacy-preserving secure digital identity (ID). The hearing also looked at the future of digital identity frameworks, examining how the emerging technologies (including AI, blockchain, and other distributed ledger technology) could contribute to building digital ID.
I gave testimony on the critical role blockchain technology can and should play in the efforts to better secure digital identity and also preserve individual privacy. Blockchain is important because it has unique qualities that set it apart from other transaction database management systems. Specifically, blockchain is being used today in private, permissions-based decentralized systems that are secure, trusted, and automated with bank-grade security. Ultimately, blockchain technology helps make digital transactions more secure, faster, and less expensive.
I reminded the task force that approving the Improving Digital Identity Act of 2021 into law would help ensure that the United States remains a world leader when it comes to online privacy and security.
Indeed, I believe the future of our economy depends on the U.S. government tackling data privacy issues and doing everything possible to ensure that the United States is on the cutting edge when it comes to digital identity verification services.
Further, I suggested that the Task Force consider ensuring that any legislation that sets national standards for consumer user privacy and data security require that any business or government entity that collects a consumer’s Personal Identifiable Information (PII) have in place systems, products, and services that ensure the privacy and security of that consumer’s personal information and their data.
Again, I shared my strong belief that blockchain represents a viable solution for many of the challenges facing both our country and the global community when it comes to digital identity, privacy, and combating identity theft. At the very least, blockchain needs to be one of several emerging technologies that can and should be employed to better verify digital identity and preserve privacy.
Conclusion
These efforts do not, of course, represent the entire effort of the U.S. federal government to improve data privacy and security. However, they represent valid, viable programs that could meaningfully protect privacy and data across digital environments.
I look forward to tracking their progress in 2022, and will continue to champion greater data privacy and security—and blockchain technology as an opportunity to achieve such goals—as the U.S. and other governments around the world evolve with our digital economies and lives.