Ashley Moody: 'We Cannot Overstate The Threat To This Nation And To People Individually'

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At Wednesday's Senate Judiciary Committee hearing, Sen. Ashley Moody (R-FL) discussed the fallout of 23andMe's bankruptcy.

Transcript

00:00Thank you for conducting this hearing and for all of our witnesses that have taken time to be here.

00:04These are complex issues and certainly we appreciate your expertise on the matter.

00:11I think any American sitting at home when they learned of this bankruptcy that had submitted information to 23andMe

00:18was probably terrified and had never thought about what would happen to their information.

00:23So it's not just policy makers that are worried about this.

00:27I think people all around the United States are now concerned of what happens to their very sensitive personal information

00:33and I think this is going to affect everything from data privacy to national security to potential biotech threats

00:40and we cannot overstate the threat to this nation and to people individually.

00:47I think it's both going to be from a national security concern but also private companies getting access to some of this data.

00:54I appreciate the shout out to Florida.

00:57Florida does lead in many of these policy areas.

01:00We are not afraid to diligently dig in and take action quickly to protect people and their rights

01:06and thank you for acknowledging that.

01:08In fact, right now as we sit here, it is not illegal for insurance companies, life, disability insurance,

01:18to inquire about, get access to your genetic information in all 50 states except Florida.

01:27And so we appreciate that and I think it's going to be imperative that this body,

01:33as we are presented with the sale of companies that have access to this information,

01:38and it's not just 23andMe, there are going to be other companies that get access to genetic information

01:42to be used in business models, to develop strategies, to maximize profits,

01:47whether that's from their everyday course of business or whether that's selling of assets.

01:52We're going to have to deal with how the exchange of genetic information of Americans is protected

01:59and whether it can even be treated as an asset.

02:02And I want to start first, sir, we appreciate you being here

02:07and I know you have the best of intentions, you have said, as it relates to the assets.

02:11And you consider the genetic information of Americans to be assets?

02:17The genetic information belongs to the consumers and, you know, basically,

02:21and it is a very valuable asset to those consumers, yes.

02:24But to 23andMe, you considered that to be an asset?

02:29It is an asset to 23andMe, yes.

02:31And in terms of valuing your business moving forward

02:34or valuing your particular parts of your assets in a bankruptcy, that is one core asset?

02:42Senator, we did not value that asset, you know, per se as part of the bankruptcy.

02:48However, the bidders are looking at that and placing a value on it.

02:52A bidder wanting to buy your company is assessing whether or not they can buy that data

02:59as part of how much they're going to pay you.

03:01Yes.

03:03And the more customers that delete their information,

03:06the less of that asset is available to transfer is what you're telling us today.

03:11Senator, you know, for asset 23andMe, we've let the buyer...

03:15Yes or no?

03:16And you're deleting that data and once you sell an asset off,

03:19will it be less of an asset to sell?

03:22There will be less...

03:24Do you ask your question?

03:25Customers with genetic information in our database as people delete them, yes.

03:29So the customers that don't get this notice across the United States,

03:34the warnings from the attorneys general that this is a problem,

03:37you need to delete your information if they've moved and they don't get the notice

03:40and they don't delete it, they are part of the asset group that goes to the other country, right?

03:46Senator...

03:47Or goes to the other...

03:48Could be the other country, I'm sorry, the other business.

03:49Senator, we have provided notice to all of our customers of the bankruptcy proceedings

03:56and this week we will be providing notice of the sale of the company

04:01to either Regeneron or TTAAM Research Institute.

04:07And at all times our customers have complete control over their data.

04:11They have the right...

04:12Except for the ones that didn't get notice and don't know about the sale, right?

04:15Senator, with all due respect, we are doing everything we can to make sure all of our customers

04:20get that notice of the bankruptcy and of the sale.

04:24We have emailed them...

04:25I heard that you have the best intentions.

04:28So I'm also hearing that we might need to modify federal law to address these intentions

04:32because when you're talking about the sale,

04:36you list that you will not sell to any countries of concern on your website,

04:41but I guess all other foreign nations could presumably offer to buy, right?

04:49If they're not a country of concern in your mind?

04:52Senator, you know...

04:53Yes or no?

04:54You're limiting the exclusion of those to countries of concern.

04:59We are limiting the sale of assets to any foreign adversary to the United States,

05:04any companies in those countries.

05:06But another foreign adversary could buy this information or another, excuse me,

05:11another foreign nation state could buy this information and sell it to a foreign adversary.

05:16Nothing prevents that, right?

05:18Senator, with all due respect, we have only two bidders left here

05:22and both are American enterprises.

05:25Both Regeneron is a public pharmaceutical company here based in the U.S.

05:29and TTAM Research Institute also is an American foundation,

05:34you know, founded by the former CEO and co-founder of 2020.

05:37But at the core of it, I understand you're saying right now there are only two bidders left,

05:42but under federal law and under what your best intentions are permitting,

05:46it could have allowed for a foreign state to buy these assets.

05:54Nothing would have prohibited that and selling it to a foreign adversary, correct?

05:57Nothing in federal law would have prevented that.

05:59I am not a lawyer, but I do believe there are regulations

06:05and there would have been different oversight if any of the assets were sold to anyone outside of the United States.

06:15Thank you, Chairman Grassley.

06:18Thank you, Chairman Grassley, and thank you to each of the panelists for coming here today

06:22and testifying on this important issue.

06:24It is particularly valuable that you're here to shed light on two issues important to our nation,

06:31to our families, and frankly also to my home state of Delaware,

06:36namely bankruptcy and debt.

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