A new bipartisan bill introduced by US lawmakers on Wednesday aims to completely outlaw government usage of any Chinese-linked blockchain tech — and even cryptocurrency. Besides a blanket-ban, the bill also calls for a pointed ban of any government dealings with iFinex — the parent company of Tether, the world's largest stablecoin cryptocurrency (by market cap).
The proposal, named The Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act, is co-led by a bipartisan duo of U.S. Reps. Zach Nunn, R-Iowa, and Abigail Spanberger, D-N.J. There are already a number of crypto-related bills on the floor, some of which also include security concerns around China-based blockchain tech. In a statement provided to Coindesk, the lawmakers clarified that the CLARITY Act aims to ensure that foreign adversaries don't have any sort of backdoor access that could be used to access critical national security intelligence and American's private information.
Other targets of the bill include The Spartan Network, The Conflux Network, and Red Date Technology Co., the latter of which is the official architect behind China's national blockchain project and central bank digital currency (CBDC) development for the digital yuan.
Red Date specifically responded to the bill, clarifying that its blockchain tech (namely the BSN Spartan Network) is arranged towards traditional IT, not crypto (of course, there's also the problem that the world of IT is just as vulnerable to information-stealing back doors). The company also invited U.S. officials to look over their open-source code and, well... make their own conclusions.
The bill further proposes that the U.S. Secretary of the Treasury, Secretary of State, and the Director of National Intelligence develop a synchronized plan toward "preventing the risks posed by China's and other foreign adversaries' development of blockchain technologies."
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Francisco Pires is a freelance news writer for Tom's Hardware with a soft side for quantum computing.
So close, they should just ban it all, it’s wasteful, write only ledgers would do that and cheaper.Reply
"Rogue Innovators" What even.Reply
It sounds like the world needs more rogue innovators actually
Weren't crypto banned in China already? This seems counterintuitive to American interests because a lot of anti-government chinese use crypto to trade.Reply
Crypto bros: Good luck with thatReply
US govt: what's the difference between email and a website?
Intel offices: this allows us to backdoor all end to end encryption right?
Foreign actors: Now we only have 32,767 other spy programs to use.
Rest of World: *whiskey and popcorn*
Crypto is banned from the Chinese financial system bu the technology is not banned. This is similar to India and other countries that have "banned" crypto, and what America should have done. What it means is that nobody can pay for goods and services in China with crypto nor can they convert crypto to Chinese yuan but mining and developing crypto is not illegal, and not to be confused by the many illegal crypto miners in China who are illegal because their rigs access electricity illegally.williamcll said:Weren't crypto banned in China already? This seems counterintuitive to American interests because a lot of anti-government chinese use crypto to trade.