On February 28th, President Joe Biden signed a significant executive order aimed at safeguarding Americans' bulk sensitive personal data and United States government-related data from countries of concern. The order initiates multiple government initiatives, including forthcoming regulations from the Department of Justice (DOJ) and the Department of Homeland Security (DHS). These regulations will block or impose restrictions on transactions involving designated personal data with foreign adversaries and their proxies, notably including China, Cuba, Iran, North Korea, Russia, and Venezuela.

The DOJ will lead efforts to regulate personal data transactions, with specific focus on preventing transactions with entities from countries of concern. Simultaneously, the DHS will develop commercial data privacy and security rules, establishing minimum standards for organizations engaging in such transactions. The regulatory process will involve soliciting feedback from stakeholders through advance notices of proposed rulemaking (ANPRM) and subsequent rounds of comments.

Under the proposed regulatory regime, the sale of bulk personal data or sensitive data about U.S. government personnel will face stringent restrictions. Stakeholders, especially those involved in buying or selling bulk personal data, must closely monitor these developments. The executive order reflects heightened concerns about threats from foreign adversaries who exploit commercially available data for malicious activities, including cyber-enabled attacks, espionage, and surveillance of individuals critical to national security.

The order's provisions underscore the urgent need for robust controls around the sale and transfer of sensitive personal data, particularly concerning national security risks. It represents a shift towards targeted exclusion of transactions involving designated personal data, irrespective of the data's physical location. The proposed regulations focus on covered types of personal data, data subjects, transactions, selling and purchasing entities, ensuring comprehensive oversight to mitigate risks effectively.

The ANPRM outlines categories of sensitive personal data and covered personal identifiers subject to restrictions, including biometric data, precise geolocation data, human genomic data, personal health data, and personal financial data. Moreover, the proposed thresholds for bulk data transactions involving U.S. citizens aim to prevent unauthorized access and mitigate security risks associated with data breaches.

As the regulatory process unfolds, stakeholders will play a crucial role in shaping the final rules to align with the administration's policy objectives. The executive order initiates a broader conversation on digital sovereignty and the role of national security law in safeguarding sensitive personal data. While uncertainties persist, the order marks a pivotal step towards enhancing data privacy and security in an increasingly interconnected world.