New legislation aims to protect national security intelligence and private information from foreign adversaries
The U.S. government has recently introduced a bill that aims to prohibit federal officials from conducting business with Chinese blockchain companies and Tether, the issuer of the USDT stablecoin. The move is part of a broader strategy to protect national security intelligence and the private information of American citizens from foreign adversaries.
The bill, known as the CLARITY Act, is designed to prevent foreign entities, particularly China, from accessing sensitive national security intelligence and Americans' private information stored on blockchain technology. The legislation also includes restrictions on transacting with The Conflux Network, The Spartan Network, and Red Date Technology Co., all of which are associated with China.
The CLARITY Act also instructs key government officials, including the U.S. Secretary of the Treasury, Secretary of State, and the Director of National Intelligence, to develop a comprehensive plan to address the risks posed by China's and other foreign adversaries' development of blockchain technologies.
This bill follows a previous ban on government employees' use of the Chinese social media app TikTok due to security concerns. The U.S. government has been increasingly vigilant about the potential security risks associated with foreign technology, particularly those originating from China.
If passed, this bill could significantly impact the operations of Chinese blockchain companies and Tether's USDT in the U.S. It also signals a growing concern within the U.S. government about the potential security risks associated with blockchain technology, particularly when it is controlled by foreign adversaries.