The US plans to do away with China-made blockchains used in powering cryptocurrency transactions indefinitely. The new development will be based on a new bipartisan measure that MPs submitted on Wednesday.
Recent financial changes continue to surge, and US regulatory organizations, lead by the Securities and Exchange Commission (SEC) and other proposed measures in the states, have expressed caution regarding cryptocurrencies. According to the new bill, corporate transactions involving cryptocurrency will be restricted and exiled with Terthr’s USDT.
China vs. US: Here’s the New Bipartisan Bill
On November 8, 2023, US lawmakers introduced a new bill that would prohibit federal government personnel from conducting business with China-based blockchain networks.
This is the latest development in the United States’ distrust of the Chinese region about digital currencies. Individuals with knowledge of the topic have confirmed this new bill, demonstrating their cold war on cryptocurrency.
Furthermore, the measure prohibits US government enterprises and officials from using cryptocurrency platforms for investing purposes. iFinex, the parent business of Tether, is one of the companies featured. Transactions involving the world’s largest stablecoin, USDT, will be barred as a result of this limitation.
The Creating Legal Accountability for Rouge Innovators and Technology (CLARITY) Act was introduced by US Representatives Abigail Spanberger (D-VA) and Zach Nunn (R-lowa). The proposal wants to prohibit government officials from tracking digital transactions using crypto platforms developed by Chinese developers, as well as from supporting China-based blockchains related to crypto trading.
Nunn is a new House member who joined the committee this year. He responded on the measure he co-authored with Spanberger, saying:
“Within the next decade, every American will have sensitive, private data stored using blockchain technology, so China’s heavy investment in this infrastructure poses a colossal national security and data privacy problem.”
Government officials are also prohibited from accessing networks such as The Spartan Network, Red Date Technology Co., and The Conflux Network. These are the creators of China’s digital currency and the region’s blockchain goods, such as the digital Yuan or the central bank digital currency (CBDC).
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Other Recent Crypto Legislation
Zach Nunn and Abigail Spanberger are not members of the committee’s leadership, nor are they members of the US House of Representatives’ leadership. Other senior members are also pressing for cryptocurrency reforms, and these bills address issues regarding crypto securities.
Tom Emmer’s amendment proposal, which was also released on Wednesday, was one such proceeding. The senior House member advocated a reform to the Securities and Exchange Commission’s (SEC) operations in pursuing the cryptocurrency industry.
Emmer’s Bill seeks to obstruct the SEC’s superior power and claims to seek solely legal action rather than the implementation of its regulatory principles.
The proposed law also targets SEC Chair Gary Gensler, claiming that Emmer’s statements demonstrated his inability to head the regulatory body. He stated,
“My amendment seeks to put an end to Chair Gensler’s pattern of regulatory abuse, a pattern that is crushing American innovation and capital formation, without undermining our ability to go after criminals and fraudsters.”
This amendment is one of the efforts that has been passed and has the full backing of the House committees.
In light of the most recent law submitted by Zach and Abigail, the primary goal of this measure is to ensure that previous adversaries, particularly China, do not have access to important data from the National Security Intelligence as well as private information of Americans. This was explained by MPs in their proposal on Wednesday.
