Congressional privacy proposals could kill scores of blockchain projects

With public trust in large tech companies at an all-time low, Congress is once again considering comprehensive data privacy legislation. But the rise of

Historically, this is the approach that the U.S. has taken to data privacy in other industries. From laws about financial information to healthcare information, policymakers have traditionally created data privacy rules that are narrowly tailored to specific contexts. The Health Insurance Portability and Accountability Act, for example, governs the flow of healthcare information, while the Gramm-Leach-Bliley Act was designed to protect consumers’ financial privacy. These rules almost always preempt state-level rules and are generally more politically palatable than sweeping one-size-fits-all legislation.

Through a sectoral approach to data privacy legislation, lawmakers can create rules tailored to different contexts that harmonize with blockchain technologies. If lawmakers believe that a sectoral approach does not go far enough toward protecting consumers’ information, then they should at least draft comprehensive data privacy legislation in a way that won’t harm innovation and force innovators offshore. After all, there’s a reason most of the best and brightest technologists choose to live, work and build in the United States. It would be foolish to push them and their innovations away with short-sighted legislation.

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