Rep. Patrick McHenry, a North Carolina Republican and ranking member of the House Financial Services Commission, will speak at a hearing in Washington, DC.
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A new bill from House Financial Services ranking member Patrick McHenry, RN.C. lays the groundwork for how Republicans will tackle financial data privacy if the party regains a majority in November this year. ..
The discussion draft, which is shared exclusively with CNBC, is aimed at data aggregators in addition to financial institutions and modernizes the financial data protection law known as the Gramm-Leach-Brilly Act to increase transparency with customers. .. Such changes may apply to fintech companies such as: Plaid Also Intuit mint.
This text arrives on the same day that members of the House Energy and Commerce Committee marked US Data Privacy and Protection Acts. This is a new bipartisan framework that has brought digital privacy back into the limelight as Congress prepares to conclude its August recess. .. The promotion of federal privacy law has had many outages and start-ups in the past, but the new text has sparked a new spark behind the effort as it contained compromises on key issues that previously stagnated negotiations. Provided a role.
The draft aims to update and expand the subject matter of the law to maintain relevance in the face of further innovation.
“I didn’t want to start with a really normative and restrictive model that would prevent developers from creating new apps, tweaking apps, or creating new products,” the staff said. .. “But we wanted to ensure that consumers had all the information to make wise choices about what they wanted to share and what they didn’t want to share.”
In the discussion draft, financial institutions need to notify their customers not only when they are disclosed to third parties, but also when private personal information is collected.
Consumers can also instruct financial institutions and data aggregators to stop collecting data or delete data they own. In addition, we need to expand the definition of non-public information that can identify individuals subject to the law, allowing companies subject to the bill to opt out of data collection when they do not need to provide services. there is.
The bill will allow federal agencies to develop rules that take into account the potential higher burden of SME compliance. We also anticipate state law and create national standards. This is what some Democrats have rejected in other privacy debates because it sees the state as an important place to extend protection in addition to federal law.
“This proposal modernizes the current framework, makes it more consistent with evolving technology, and protects consumers from misuse and misuse of personal information,” McHenry said in a statement. “We look forward to continuing to work with our colleagues in this discussion draft to ensure American privacy without strangling innovation.”