US Congress Proposes Bill to Restrict Government Interactions with Foreign Adversarial Blockchain Networks

blockchain.news:

On November 8, 2023, the United States Congress witnessed the introduction of a significant piece of legislation — H.R.6307. Sponsored by Representative Zachary Nunn [R-IA-3], this bill aims to defend against the economic and national security risks posed by foreign adversarial blockchain networks. The bill has been referred to several key committees, including the House Foreign Affairs, Financial Services, and Intelligence (Permanent Select), for comprehensive consideration.

Central to the bill's purpose is the prohibition of U.S. government personnel from engaging in business with blockchain companies based in China. This move signifies Washington's growing skepticism towards China's role in the cryptocurrency sector. The bill specifically targets iFinex, the parent company of Tether and issuer of USDT, the leading stablecoin by market cap. Co-led by Representatives Zach Nunn (R-Iowa) and Abigail Spanberger (D-Va.), the Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act, extends these restrictions to include transactions with Chinese-based blockchain networks.

A key driver behind this legislative move is the concern over national security and data privacy. The bill seeks to prevent foreign adversaries from gaining backdoor access to critical national security intelligence and the private information of Americans. Rep. Nunn highlighted the urgency of addressing China's significant investments in blockchain infrastructure, citing the potential risks to national security and data privacy.

The bill delineates clear restrictions for government personnel, banning transactions with specific entities like The Spartan Network, The Conflux Network, and Red Date Technology Co., the latter being