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Data Privacy and Cybersecurity Outlook for 2025: What Financial Services Firms Need To Know

Last year saw many developments across the worldwide data privacy and cybersecurity landscape, including in the EU/UK, and this momentum shows no sign of slowing in 2025. The EU General Data Protection Regulation (GDPR) enters its seventh year in May 2025. New cybersecurity and operational resilience legislation and related guidance are coming into force to regulate new and challenging technologies, several of which will affect financial services firms.

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European Health Data Space Regulation Adopted: What’s Next for Life Sciences Companies?

On January 21, 2025, the European Health Data Space Regulation (EHDS) was formally adopted by the Council of the European Union. This marks the near-final step in the adoption process, and will enter into force in the coming weeks. Importantly for life sciences companies (pharma, biotech, and medtech), the EHDS’ so-called secondary use provisions will become applicable in 2029, leaving companies four years to consider, adapt to, and implement these wide-ranging requirements.

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U.S. Department of Commerce Finalizes Connected Vehicles Supply Chain Restrictions

On January 16, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) Office of Information and Communications Technology and Services (OICTS) published a Final Rule formalizing prohibitions on certain connected vehicles (CVs) transactions involving hardware and software linked to the People’s Republic of China (China) and Russia.1 The Final Rule is scheduled to take effect on March 17, 2025.  However, given that the Final Rule is one of several new regulatory frameworks on trade issued in the final days of the Biden administration, it remains to be seen what will happen with these regulations after January 20.

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New U.S. Export Controls on Advanced Computing Items and Artificial Intelligence Model Weights: Seven Key Takeaways

On January 15, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) published in the Federal Register updated export controls on advanced computing items (including advanced integrated circuits (ICs) and related equipment, software, and technology) and, for the first time, controls on artificial intelligence (AI) model weights under the Export Administration Regulations (EAR). These new regulations were published as an interim final rule and took effect on January 13, 2025, although compliance is not required until May 15, 2025. BIS also published in the Federal Register a smaller companion rule on January 16, 2025, that expands licensing requirements on foundries and packaging companies seeking to export advanced computing equipment and requires compliance by January 31, 2025.

Action Items for U.S. Public Companies for 2025

Rapid rulemaking and aggressive enforcement by the SEC, combined with legislative, judicial, and regulatory developments, have created new requirements and expectations for U.S. public companies.

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2025 Will Be a Brave New Tokenized World

Tokenization of real-world assets (RWAs) is revolutionizing the way we perceive and manage assets. “Tokenized RWAs,” or more simply the digital representation of physical or intangible assets using a token recorded on a blockchain, allows for the efficient recording, trading, transferring, and managing of tangible assets in a digital format.

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Spotlight on Women in Privacy: Nathalie Barrera

Check out the December issue of Spotlight on Women in Privacy, featuring Nathalie Barrera. Nathalie discusses her role as a privacy attorney at Palo Alto Networks, the importance of continuous learning, and some of the key developments she will be watching out for.

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U.S. Department of Commerce Seeks to Protect Drones Supply Chain From Foreign Adversaries

On January 3, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) Office of Information and Communications Technology and Services (OICTS) published an Advance Notice of Proposed Rulemaking (ANPRM) on the national security risks posed by foreign adversary involvement in the supply chain for unmanned aerial systems (UAS) (i.e., drones), including risks to critical infrastructure and U.S. sensitive data. BIS seeks public input to inform regulations on the supply of certain UAS components developed by entities linked to the People’s Republic of China (China) and Russia.

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Colleen Theresa Brown

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Thomas D. Cunningham

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Sharon R. Flanagan

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David A. Gordon

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Tomoki Ishiara

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Amy P. Lally

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David C. Lashway

Washington, D.C.
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William RM Long

London
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Joan M. Loughnane

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Geeta Malhotra

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Rollin A. Ransom

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Yuet Ming Tham

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Jonathan M. Wilan

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John W. Woods Jr.

Washington, D.C.

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