The U.S. financial industry is applauding a legislative proposal by U.S. President Barack Obama designed to boost cybersecurity.

The proposal announced Tuesday aims to promote information sharing between the private sector and government, and enhances collaboration and information sharing within the private sector. It also contains provisions that would criminalize the overseas sale of stolen U.S. financial data; expands federal authority to deter the sale of spyware; gives courts the authority to shut down botnets engaged in denial of service attacks and other criminal activity; and, allows prosecution for the sale of botnets.

The proposal was welcomed by the Securities Industry and Financial Markets Association (SIFMA). “We commend the administration for their focus on this critically important issue and agree that a robust partnership between the private sector and government is the most effective way to mitigate cyber threats,” said Kenneth Bentsen Jr., president and CEO of SIFMA.

“We have long encouraged Congress to pass cybersecurity legislation that strengthens our nation’s cyber defenses by codifying liability protections that promote enhanced information sharing between the industry and government while balancing the need for important privacy protections for individuals,” Bentsen added. “The industry remains committed to doing everything it can to prepare for and defend against a cyber attack.”

In addition to the new legislative proposal, the Obama administration has also updated its existing proposal on security breach reporting, which aims to simplify and standardize the existing patchwork of 46 state laws into one federal law; and, it announced plans for a summit on cybersecurity and consumer protection to be held at Stanford University on Feb. 13.