presidential decree prioritizing digital identity safeguards and secure usage
The Biden administration's digital identity executive order, though partially rolled back in mid-2025 due to political and misinformation controversies, has had significant impacts on digital identity protection and mobile driver's licenses (mDLs) in the U.S.
- Expansion of mDLs for Online Identity Verification
Previously, mDLs were mostly used in-person (e.g., airport checkpoints). However, the updated National Institute of Standards and Technology (NIST) digital identity guidelines now recognise mDLs as valid for online identity proofing. This shift is expected to reduce fraud in government benefit applications and other online services by providing a secure, government-backed digital credential accessible via smartphones or other devices.
- Integration with Federal Digital Services
Login.gov, the federal single sign-on and identity proofing service used by over 100 million people for government benefits access, plans to support mDLs as a proofing option by early 2026. This integration points towards a future where digital IDs provide streamlined, secure access to federal and state services while reducing reliance on paper or physical credentials.
- Emphasis on Privacy, Security, and Decentralized Control
Future digital identity frameworks encouraged by the Biden administration’s policies emphasise open standards, interoperability, decentralised identity architectures, and privacy-by-design principles. The goal is to avoid vendor lock-in, empower users with control over their data, and enhance resilience against cyberattacks and identity fraud.
- Addressing Emerging Fraud Threats
The new guidelines also incorporate controls against sophisticated identity threats, such as those posed by AI-generated "deepfakes," which have been increasingly used in fraud schemes to bypass traditional identity checks. This anticipates a future of stronger security measures in digital ID verification processes, protecting institutions and individuals from novel cybercrime tactics.
- Political and Ideological Challenges
Despite technical progress, some provisions related to equity and inclusiveness—such as concerns that digital IDs could be issued to immigrants lacking legal status—have been rolled back or faced pushback. This introduces uncertainty about the pace and extent of full nationwide adoption, as political contestation continues to shape policy implementation.
- Future National Strategy and Infrastructure
Advocates and some policymakers push for declaring digital identity as critical infrastructure, creating dedicated federal task forces, running decentralised pilot programs, funding open-source digital wallet projects, and wide public education campaigns around privacy and security benefits. These steps could lead to a unified and resilient national digital identity ecosystem within the next 12 to 24 months.
In addition, the U.S. can take inspiration from international regulations like the GDPR in the European Union to ensure that digital ID systems are secure, efficient, and built with privacy at their core. The Biden administration has also issued a new executive order to modernise website verification systems, focusing on privacy-preserving digital identities and mDLs.
Agencies will conduct regular security assessments for open-source software, ensuring that vulnerabilities are addressed promptly. The U.S. should implement federal data privacy laws that prioritise the rights of individuals, including empowering people to access, correct, and delete their data from third-party databases.
The U.S. needs a national framework for managing and verifying digital identities, such as Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs). Identity theft and synthetic identity fraud are pervasive issues in the U.S., with millions of Americans falling victim each year. The unregulated use of artificial intelligence (AI) in website verification poses risks, particularly in areas like facial recognition or biometric authentication.
Data brokers collect, analyse, and sell personal information without the individual's consent, leading to privacy violations. Agencies such as the Department of Transportation and the Treasury Department are tasked with supporting state programs for mDL adoption. The National Institute of Standards and Technology (NIST) will issue guidelines on secure digital ID practices, focusing on data minimisation, tracking prevention, and interoperability.
The order promotes technologies that enable selective disclosure, allowing individuals to verify specific attributes without revealing unnecessary personal details. The U.S. needs to restrict data brokers and third-party access, requiring these brokers to disclose what data they gather and giving individuals the right to opt out of data sales. The Treasury Department and the General Services Administration (GSA) will pilot a service that notifies individuals whenever their personal information is used in public benefit applications, allowing them to quickly spot potential fraudulent activity.
AI will be leveraged to enhance cybersecurity by enabling real-time threat detection, automating vulnerability management, and responding dynamically to cyberattacks. The order emphasises the importance of creating interoperable digital ID systems, ensuring that digital IDs issued in one state can be recognised and accepted in others. The Biden administration’s executive order encourages cooperation between federal agencies and private sector partners to more effectively detect fraudulent activity early.
Cybersecurity measures will be essential in safeguarding digital identity management systems against cyberattacks and identity fraud, as technology advancements continue to evolve. For instance, the integration of Artificial Intelligence (AI) in threat detection could help respond dynamically to emerging cyber threats.
The expanded use of mobile driver's licenses (mDLs) will not only streamline access to federal services but also reinforce technology-driven cybersecurity, given that these digital credentials can be backed by secure, government-issued authentication mechanisms.
