An amendment to the National Defense Authorization Act passed by the House in July would create a “systemically important entity” designation, applying new regulations and offering priority aid to certain critical infrastructure companies. But the American Bankers Association and Bank Policy Institute say the amendment as applied to financial institutions would duplicate existing regulations under the Dodd-Frank Act, while also requiring the turnover of a substantial amount of cybersecurity-related data that could prove dangerous in the wrong hands.
The amendment introduced by Congressman Jim Langevin (D-RI), chairman of the House Armed Services Committee’s Subcommittee on Cyber, Innovative Technologies, and Information Systems, focuses on those private sector entities whose core functions are of national consequence to the United States, a definition which would encompass some of the largest companies in the nation’s banking industry.
Explaining the reasoning behind the amendment, Congressman Langevin said, “After all, these entities are particular focal points of leverage to our adversaries — if any of them falls victim to a cyberattack, the entire country is…
