On November 8, 2023, the US Congress witnessed the introduction of a major piece of laws – H.R.6307. Sponsored by Consultant Zachary Nunn [R-IA-3], this invoice goals to defend in opposition to the financial and nationwide safety dangers posed by overseas adversarial blockchain networks. The invoice has been referred to a number of key committees, together with the Home International Affairs, Monetary Companies, and Intelligence (Everlasting Choose), for complete consideration.
Central to the invoice’s function is the prohibition of U.S. authorities personnel from partaking in enterprise with blockchain corporations primarily based in China. This transfer signifies Washington’s rising skepticism in the direction of China’s position within the cryptocurrency sector. The invoice particularly targets iFinex, the guardian firm of Tether and issuer of USDT, the main stablecoin by market cap. Co-led by Representatives Zach Nunn (R-Iowa) and Abigail Spanberger (D-Va.), the Creating Authorized Accountability for Rogue Innovators and Know-how (CLARITY) Act, extends these restrictions to incorporate transactions with Chinese language-based blockchain networks.
A key driver behind this legislative transfer is the priority over nationwide safety and information privateness. The invoice seeks to stop overseas adversaries from gaining backdoor entry to crucial nationwide safety intelligence and the personal data of People. Rep. Nunn highlighted the urgency of addressing China’s important investments in blockchain infrastructure, citing the potential dangers to nationwide safety and information privateness.
The invoice delineates clear restrictions for presidency personnel, banning transactions with particular entities like The Spartan Community, The Conflux Community, and Purple Date Know-how Co., the latter being pivotal in China’s nationwide blockchain initiative and its central financial institution digital forex (CBDC), referred to as the digital yuan.
In gentle of those developments, Purple Date Know-how responded by clarifying the meant use of the BSN Spartan Community for typical IT, not crypto. The corporate has invited U.S. officers to evaluation its open-source code, encouraging unbiased assessments of their know-how.
This legislative proposal follows a pattern of elevated scrutiny over Chinese language know-how within the U.S., paralleling earlier actions just like the ban on TikTok for presidency personnel over safety issues. The invoice displays heightened vigilance over overseas involvement in crucial technological sectors and the perceived dangers they pose to nationwide safety.
The introduction of H.R.6307 marks a major second in U.S. legislative efforts to handle the challenges and dangers related to overseas adversarial blockchain networks. It underscores the significance of sustaining nationwide safety and information privateness within the face of quickly evolving technological landscapes, significantly within the realm of blockchain and cryptocurrencies.
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