As the U.S. transitions into a new administration, deregulation is set to be a key theme in 2025. Federal agencies overseeing labor, education, and transportation are expected to be scaled back to reduce bureaucracy and drive economic growth. However, cybersecurity regulations will take a different trajectory, consolidating under agencies like the Department of Homeland Security (DHS) and the Cybersecurity and Infrastructure Security Administration (CISA). These agencies are expected to implement stricter cybersecurity policies to enhance national security.
Businesses, especially those involved in national security and critical infrastructure, must prepare for increased accountability regarding their cybersecurity measures. While deregulation may ease restrictions in other sectors, cybersecurity will see intensified scrutiny. This shift presents a unique challenge for chief information security officers (CISOs), who must convince leadership teams that cybersecurity regulations are tightening despite the broader deregulation trend.
The Push for Innovation Without Bureaucracy
The U.S. Chamber of Commerce asserts that deregulation can lower business costs, control inflation, and foster economic expansion. The new administration aims to remove bureaucratic obstacles to spur innovation and improve global competitiveness—except in the defense and cybersecurity sectors.
While fewer regulations can benefit industries by reducing compliance burdens, they also raise concerns about accountability. Organizations that rely on federal standards to guide best practices may need to navigate a more fragmented regulatory environment. While CISA may provide voluntary guidelines or introduce new policies, businesses must take ownership of their cybersecurity strategies to maintain ethical, safe, and high-quality operations.
Recent cyberattacks, such as the National Public Data breach that exposed 2.9 billion records and several healthcare data breaches in 2024, highlight the increasing risks of cyber vulnerabilities. The financial impact of a data breach reached an all-time high of $4.8 million in 2024, underscoring the critical importance of cybersecurity.
With national security concerns at the forefront, businesses tied to critical infrastructure should expect stricter reporting requirements and mandatory risk assessments. These measures go beyond compliance; they are essential for protecting vital systems and sensitive data. A failure to safeguard these assets could lead to devastating consequences for industries and consumers alike. Companies must proactively assess risks, implement robust security measures, and embrace accountability to maintain operational resilience and public trust.
Three Steps to Strengthen Cybersecurity Posture
1. Implement Robust Security Frameworks
Frameworks such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework and ISO/IEC 27001 offer structured approaches for cybersecurity risk management. These guidelines help businesses align security strategies with organizational objectives while ensuring compliance with evolving regulations. By adopting these frameworks, companies can build resilient security infrastructures and mitigate threats effectively.
2. Leverage Technology and Skilled Talent
AI-driven security solutions enhance response times and detect vulnerabilities before exploitation. However, technology is only as effective as the people using it. Businesses must invest in cybersecurity training and hire top talent to ensure their security measures remain robust. Cultivating a security-conscious workforce will help organizations proactively defend against emerging threats and strengthen their competitive edge.
3. Foster Transparency and Maintain Trust
Cybersecurity is no longer just a compliance issue—it is a critical component of corporate reputation. Businesses that demonstrate a strong commitment to security through transparency and ethical practices will differentiate themselves in the market. Prioritizing security accountability fosters customer trust and contributes to a safer digital environment.
Deregulation offers opportunities for growth and innovation, but it also introduces new risks that demand proactive cybersecurity measures. Companies that embrace both innovation and enhanced security will not only adapt to regulatory changes but also position themselves for long-term success. By prioritizing security in an evolving regulatory landscape, businesses can ensure they thrive amid shifting federal policies.
