A new bipartisan bill proposed by U.S. lawmakers seeks to ban federal government personnel from doing business with China-based blockchains enterprises.
Key Takeaways
- U.S. lawmakers have introduced a bipartisan bill aimed at prohibiting federal government personnel from conducting business with China-based blockchain companies.
- The bill also explicitly forbids U.S. government officials from engaging with iFinex, the parent company of USDT, the world’s largest stablecoin.
- The primary objective of the bill is to prevent “foreign adversaries” from having access to critical national security intelligence and Americans’ private information through backdoors created by blockchain networks.
- The legislation seeks to eliminate networks developed by Chinese entities used in cryptocurrency transactions, impacting businesses and Tether’s USDT.
Introduction of the Bipartisan Bill
U.S. lawmakers have put forth a bipartisan bill that would restrict federal government personnel from conducting business using blockchain networks developed in China, signaling growing skepticism towards Chinese cryptocurrency relationships.
It only outlaws use of these blockchains for government officials.
It’ll be more interesting if they revise the bill to expand the USDT ban for all US citizens.— John C Taylor (@Johnonstocks) November 9, 2023
The proposed bill is part of the United States’ increased scrutiny of the Chinese crypto space and would also ban U.S. government officials from using cryptocurrency platforms for investment purposes.
Ban on Chinese Networks
Government officials would be barred from using networks such as The Spartan Network, Red Date Technology Co., and The Conflux Network, which are linked to China’s digital currency initiatives and blockchain products.
Other bills related to cryptocurrencies have been proposed, including an amendment by Tom Emmer aimed at limiting the authority of the U.S. Securities and Exchange Commission (SEC) in regulating the crypto industry.
To Conclude
The new bipartisan bill and related amendments reflect the United States’ concerns regarding Chinese involvement in blockchain and cryptocurrency technologies.
These legislative initiatives seek to protect national security interests and data privacy while impacting the use of Chinese-developed blockchain networks and cryptocurrencies like USDT in government transactions.
