• Congress is considering comprehensive data privacy legislation.
• The American Data Privacy Protection Act (ADPPA) outlines strict guidelines for data collection and processing.
• European Union’s General Data Privacy Regulation (GDPR) inhibits investment and innovation in traditional tech industries, and is incompatible with decentralizing technologies like blockchains.

Congressional Privacy Proposals

Congress is considering comprehensive data privacy legislation that seeks to balance individuals’ right to control their information and the necessity of innovation. One of these bills, the American Data Privacy Protection Act (ADPPA), would require companies to minimize data collection and grant consumers the right to opt out of data collection.

Impact on Blockchain Projects

These legislative proposals may have a negative impact on blockchain projects, which could be forced to move offshore or shut down altogether. Without major revisions, the ADPPA risks strangling decentralizing technologies before they can take off.

European Union’s GDPR

The European Union’s General Data Privacy Regulation (GDPR) has inhibited investment and innovation in traditional tech industries, as well as being incompatible with decentralizing technologies like blockchains due to its lack of centralized controllers.

Time-Tested Approach Needed

In order to properly balance conflicts between individuals’ right to control their information and the necessity of innovation, lawmakers should abandon one-size-fits-all proposals in favor of a time-tested sectoral approach to data privacy.

Public Trust at All Time Low

With public trust in large tech companies at an all-time low, Congress must consider how their proposed legislation might affect technological innovation when determining new rules for data privacy protection.