Statement for the Record before the House Energy and Commerce Committee on the hearing, "Examining Legislation to Establish a Federal Comprehensive Privacy and Data Security Law"

The American Bankers Association (ABA) appreciates the opportunity to provide a Statement for the Record for this hearing, Examining Legislation to Establish a Federal Comprehensive Privacy and Data Security Law. ABA is the voice of the nation's $26.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.5 trillion in deposits, and extend $13.7 trillion in loans.

Banks are a unique sector already subject to an extensive national compliance regime for data privacy and security. As we have previously shared with the Committee, the financial services industry was among the first sectors subject to a federal framework governing the collection, use, and sharing of consumer personal information pursuant to the Gramm-Leach-Bliley Act of 1999 (GLBA).

Given the existing legal requirements, ABA has consistently highlighted the need for legislation created for other industrial sectors to avoid inconsistent or duplicative requirements for banks. This would be achieved by way of an entity-level and data-level exemption for financial institutions.

SECURE Data Act

ABA commends the Energy and Commerce Committee for its efforts to produce H.R. 8413 ("SECURE Data Act"), which contains many of the policy priorities for which ABA has advocated over many years. We and our members appreciate the Committee’s efforts to create a uniform standard that protects all Americans while minimizing the burden on businesses operating in interstate commerce.

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