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House Dem introduces bill requiring public firms to disclose cybersecurity expertise in leadership

House Dem introduces bill requiring public firms to disclose cybersecurity expertise in leadership
© Greg Nash

A Democrat on the House Intelligence Committee introduced a bill on Wednesday that would require publicly traded companies to disclose to investors whether any members of their board of directors have cybersecurity expertise amid growing cyberattacks targeting U.S. companies.

Rep. Jim HimesJames (Jim) Andres HimesHouse panel spars over GameStop frenzy, trading apps COVID-19 could complicate Pelosi's path to Speaker next year Democrats debate fate of Trump probes if Biden wins MORE (D-Conn.) introduced the Cybersecurity Disclosure Act of 2019, a companion bill introduced in the upper chamber, that would make the Securities and Exchange Commission issue a new set of rules requiring U.S. companies to tell their investors whether they have someone who has cyber expertise on their board. If they don't, they must explain to their investors why this is the case.

The bill comes at a time when "cyberattacks and data breaches against U.S. companies are becoming more frequent and sophisticated," according to a press release accompanying the rollout of the bill.

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The press release cited a study from Identity Theft Resource Center that found there was a 126 percent rise of data breaches that exposed records containing personally identifiable information. This rise took place across all industries, from 197.6 million in 2017 to 446.5 million in 2018. 

"It's not only the shareholders of companies who are at risk," Himes said in a statement. "Americans' private and identifying information is in the hands of corporations who may not be prepared to protect it. The Cybersecurity Disclosure Act will give the public information about which companies are likely to have better protections and cyberdefense strategies."

"Publicly traded companies should have an obligation to let their shareholders know how they are addressing these serious threats or explain why they are not taking measures to counter attacks.  Billions of dollars of American wealth are at risk, and I am tired of seeing American companies play catchup against our geopolitical rivals or lone-wolf threats," he continued.

The Senate companion bill has bipartisan support, with Sens. Jack ReedJack ReedBiden officials testify that white supremacists are greatest domestic security threat Overnight Defense: US fires 30 warning shots at Iranian boats | Kabul attack heightens fears of Afghan women's fates | Democratic Party leaders push Biden on rejoining Iran deal Overnight Defense: Former Navy secretary reportedly spent .4M on travel | Ex-Pentagon chief Miller to testify on Jan. 6 Capitol attack | Austin to deliver West Point commencement speech MORE (D-R.I.), Mark WarnerMark Robert WarnerBiden signs executive order to improve federal cybersecurity Overnight Defense: Former Pentagon chief to testify about Capitol riot Wednesday | Senate Intelligence chairman wants Biden to review US Space Command move Wyden: Funding infrastructure with gas tax hike a 'big mistake' MORE (D-Va.), Susan CollinsSusan Margaret CollinsFormer OMB pick Neera Tanden to serve as senior adviser to Biden The Hill's Morning Report - Presented by Facebook - Masks off: CDC greenlights return to normal for vaccinated Americans Masks shed at White House; McConnell: 'Free at last' MORE (R-Maine) and John KennedyJohn Neely KennedyMORE (R-La.).