A Trust Credential could solve our data privacy problems.
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Being a consumer today is exhausting. You get asked for the same sensitive personal details again and again—when you apply for a job, open a bank account, sign up for a gig platform, rent an apartment, or verify your age online.
It’s even worse if you’re a business owner. Every new workflow becomes a data-retention liability, and every vendor connection becomes another potential leak point for your customers’ personal information.
The stakes are not theoretical. Identity fraud and scams cost Americans $47 billion in 2024, according to an AARP-backed report based on Javelin research. And breach frequency is still relentless. And the Identity Theft Resource Center tracked 3,322 “data compromises” in 2025, its highest number on record.
The uncomfortable truth is that we don’t have a privacy problem. We have a data-copying and hoarding problem. More specifically, we have a state-by-state rules problem that’s making the copying even harder to manage.
The Patchwork Is Now the Operating System
At the federal level, the U.S. still lacks a comprehensive privacy law. Meanwhile, state legislatures have moved quickly. The IAPP’s tracker lists twenty states with comprehensive consumer privacy laws, each with different effective dates, thresholds, and obligations.
As one Forbes Councils post notes, “Twenty states and zero federal guidance. That is the reality of privacy compliance in 2026.” This state-driven landscape is more than a legal headache. It changes product design based on the state you operate in and turns interstate transactions and activities into a never-ending morass.
When definitions of “sale,” “targeted advertising,” “sensitive data,” and “biometric data” vary by jurisdiction, the safest technical strategy is often the simplest. Collect less data, store less data, and share less data, because you can’t violate rules on data you never copied or collected in the first place.
The Details That Turn Compliance Into a Morass
Colorado is a great example of a rule that sounds consumer-friendly but forces operational changes across nearly every digital property. Beginning July 1, 2024, covered businesses must now allow consumers to opt out via the Global Privacy Control (GPC), a recognized universal opt-out mechanism. That affects consent flows, ad-tech integrations, and downstream vendor triggers.
California keeps changing the bar with operational requirements. The CPPA finalized regulations approved by the Office of Administrative Law covering cybersecurity audits, risk assessments, and automated decision-making technology (ADMT). The regulations took effect January 1, 2026, with staged compliance timelines.
Examples like this show that if you run a business that touches multiple states, you can’t solve a data privacy challenge with a one-time privacy policy update. As IAPP’s Cobun Zweifel-Keegan put it, “privacy programs are not a set-it-and-forget-it exercise.”
A Reusable Trust Credential Is a Practical Way Out
So what does a better model look like?
As I’ve shared in previous articles, I believe the path forward is a consumer-controlled, reusable trust credential—a way for people to verify once and then share only the minimum proof needed for a specific transaction.
At its core, the challenge facing both consumers and businesses today is not just about protecting privacy but about reducing the unnecessary spread of personal data (e.g., SSN, DoB). The current system relies on repeatedly collecting, storing, and sharing sensitive information across countless platforms, increasing the risk of breaches and making compliance with a growing patchwork of state laws increasingly difficult.
As regulations continue to expand and diverge, the most effective strategy is not simply better compliance, but fundamentally limiting how much data is copied and retained in the first place. A more sustainable path forward is to shift toward consumer-controlled, reusable trust credentials that allow individuals to verify once and share only what is needed for each interaction.
By replacing raw data exchange with minimal, verified proofs, organizations can reduce risk, simplify compliance, and build stronger trust with users. In a landscape where complexity is only increasing, the clearest way to move forward is to design systems that prioritize data minimization, giving individuals control while enabling businesses to operate more securely and efficiently.
The state privacy morass isn’t going away, but we can stop making it worse by designing systems that require us to copy and retain sensitive data everywhere. The fastest way to make privacy compliance sustainable and rebuild digital trust is to let consumers present proof rather than surrender data.
Wouldn’t it be great if we had a Trust Bureau to verify one’s Trust credentials (be it verification of Identity or any or all of their background), similar to a credit bureau, which verifies an individual’s financial background and history?
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