As the third phase of New York’s Cybersecurity Requirements for Financial Services Companies is set to begin, professionals are pondering whether the cybersecurity requirements could be used as the basis for federal rules, American Banker reports. On Sept. 4, banks will be required to encrypt nonpublic data and start “audit trails” to manage the fallout from data breaches. Ballard Spahr Co-Practice Leader of its Privacy and Data Security Group Edward McAndrew said the regulation from the New York State Department of Financial Services is serving as the model for “other legislative and regulatory” proposals. On the other hand, some professionals believe the rules are too prescriptive to be adopted on a federal level as they restrict financial institutions from adjusting to the ever-changing risk landscape. (Registration may be required to access this story.) 
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