Senate Judiciary hearing raises national-security and consumer-privacy concerns over 23andMe bankruptcy sale

Senate Judiciary Committee members and outside experts told a committee hearing that the supervised bankruptcy sale of 23andMe’s customer database raises urgent consumer-privacy and national-security questions because no comprehensive federal law currently bars transfer of genomic data in corporate sales.

The committee heard that 23andMe holds genetic data tied to about 15,000,000 people and that the company is conducting a court-supervised sale with two remaining bidders. Witnesses and senators urged Congress to consider statutory protections requiring affirmative consumer consent before any transfer, greater clarity on deletion and biobanking policies for samples, and tighter oversight of foreign access to sensitive datasets.

Senator Grassley, the committee chairman, opened the hearing by saying, “Genetic data is the blueprint to a person. It's sensitive. It's personal. And in the wrong hands, it can be dangerous.” That theme framed testimony from 23andMe’s interim executive and outside experts on law, bankruptcy, and national security.

Joseph Sell Savage, who testified as interim chief executive and finance officer for 23andMe, told senators the company is conducting a sale under the supervision of a U.S. bankruptcy court and has required bidders to agree to the company’s current privacy policies. “We are requiring that anyone bidding for 23andMe must agree to comply with our privacy policies,” he said.…