Pennsylvania House Committee Advances Consumer Data Privacy and Cryptocurrency Bills

Pa. House advances online data privacy, cryptocurrency bills

  • Pennsylvania’s House committee unanimously approved a consumer data privacy bill (HB78) that would regulate how companies handle online personal information.
  • The House Commerce Committee also advanced cryptocurrency regulation bill HB881 on a party-line vote, requiring licenses for virtual currency transfer companies.
  • Both bills face potential amendments before final House votes, with Pennsylvania potentially joining 20+ states already regulating cryptocurrency transfers.

Pennsylvania lawmakers are advancing legislation to regulate both online data privacy and cryptocurrency transfers, with two key bills moving through House committees on Tuesday. The measures represent Pennsylvania’s latest attempt to establish guardrails for digital transactions and personal data protection, following similar initiatives that stalled in the previous legislative session.

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The House committee unanimously approved a consumer data privacy bill (known as HB78) that would create rules governing how companies collect, store, and sell individuals’ online information. Despite the unanimous vote, Republican committee members signaled potential amendments before a final House vote.

“I do think that there is a tension with this legislation,” said Rep. John Lawrence, R-Chester, the committee’s minority chair. “Certainly, we don’t want to see more onerous regulations on business, but we also want to respect the fact that people are entitled to be secure and safe with their own data privacy.”

The bipartisan legislation follows a business-friendly model already implemented in 17 other states. Pennsylvania’s House approved a similar bill last year, but it failed to receive Senate consideration before the 2023-24 legislative session ended. Only California and Maryland have enacted more robust consumer protections that shift responsibility from consumers to companies for data collection limitations, with Maryland additionally prohibiting targeted advertising to minors.

Representatives Ed Neilson, D-Philadelphia, and Stephenie Scialabba, R-Butler, who sponsor HB78, expressed hope for swift passage to avoid delays during summer budget negotiations.

## Cryptocurrency Regulation Moves Forward

In a separate development, Pennsylvania lawmakers are renewing efforts to regulate virtual currency transfers, including cryptocurrencies. The House Commerce Committee advanced HB881, which would require companies facilitating virtual currency transfers to obtain licenses. Unlike the data privacy bill, this legislation passed on a strict party-line vote, with Democrats supporting and Republicans opposing.

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During committee discussions, Indira Ridgeway, the committee’s executive director, clarified that individual cryptocurrency wallets would not require licensing under the proposed regulations.

“Self-hosted wallets would not be required to be licensed under the bill, only transmission of a third party for a fee would require licensure,” Ridgeway explained, citing guidance from the Department of Banking and Securities.

This licensing requirement would align Pennsylvania with 26 other states that already regulate cryptocurrency transfers. A companion bill passed unanimously out of the Senate Banking & Insurance Committee on February 3. Similar legislation unanimously passed the Senate during the previous session but failed to clear the House before the session concluded in 2024.

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Both the data privacy and cryptocurrency bills are likely to face amendments on the House floor before final votes. Lawmakers are working to establish regulatory frameworks that balance consumer protection with business interests in Pennsylvania’s evolving digital economy.

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