The White House has threatened to veto the Cyber Intelligence Sharing and Protection Act (CISPA.)
President Obama has vowed he will veto CISPA if the measure were to get approval from the House and Senate.
The White House's statement comes in spite of recent amendments designed to temper the legislations broad language.
"Without clear legal protections and independent oversight, information sharing legislation will undermine the public's trust in the government as well as in the internet," said the administration.
CISPA is designed to protect US corporations from cyber attacks by allowing private firms and government officials to more freely share information.
The bill, which has support from the likes of Facebook, would allow tech companies to share information that they feel may be linked to possible cyber threats.
Privacy groups who fear that the legislation may be used for snooping on internet users welcomed the president's stance.
"It seems like lawmakers haven't thought through the best strategies for internet security," Fight for the Future co-director Tiffany Chang told V3.
"Their intention may be about cybersecurity, but they wrote a bill that has many unintended consequences."
The president's statement comes even after recent attempts by CISPA sponsors to temper the bill.
Congressmen Mike Rogers and Dutch Ruppersberger recently made changes to the legislation in hopes of soothing CISPA doubters.
The amendments made changes to the bill that further limit government access to information and called for an annual report on the use of threat information.
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