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Thursday, September 11, 2025

Concerns grow over 23andMe's bankruptcy implications for genetic privacy

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Senator Chuck Grassley | Official U.S. Senate headshot

Senator Chuck Grassley | Official U.S. Senate headshot

The recent bankruptcy filing by genetic testing company 23andMe has raised significant concerns about consumer privacy and national security. The company's situation has prompted the Senate Judiciary Committee, led by its chairman, to hold a hearing examining these issues.

"More than 15 million Americans are customers of 23andMe," said the committee's chairman. He emphasized that although 23andMe is not classified as a healthcare company, federal health privacy laws do not apply to its sensitive genetic data. The potential sale of the company through bankruptcy proceedings could lead to changes in its privacy policy, raising concerns about how customer information might be used or sold.

Since its founding in 2006, 23andMe faced financial difficulties exacerbated by a massive data breach affecting millions of customers. "Consumers deserve to know how their genomic data is going to be used," the chairman stated, stressing the need for protection from foreign threats.

The hearing included testimony from various experts in bioethics, bankruptcy, and national security. During questioning, the focus was on vulnerabilities to national security linked particularly to China. The chairman expressed concerns about China's development in AI and biotechnology for mass surveillance and military purposes. He noted evidence suggesting COVID-19's origins in a Chinese lab and instances of Chinese nationals smuggling biological pathogens into the U.S., emphasizing that "American genetic data must be protected."

Currently, no federal laws specifically protect genomic data during corporate bankruptcies. To address this gap, the chairman is co-sponsoring bipartisan legislation called the Don’t Sell My DNA Act. This proposed law would require consumer consent before using or selling genetic information during such proceedings.

"As an outspoken watchdog in the U.S. Senate," he remarked on his commitment to holding China accountable for intellectual property practices and protecting American interests across various sectors.

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