Irish Eyes on the Prize: U.S. Lawmakers Rally to Rein in Chinese Blockchain Giants

"CLARITY Act and US Legislators Take Aim at Chinese Blockchain Firms, Including iFinex, in Effort to Regulate Cryptocurrency Market"

The CLARITY Act, a new piece of legislation, has been introduced in the United States to restrict federal business dealings with Chinese blockchain firms, including iFinex, the company behind Tether, the issuer of the USDT stablecoin. This move is part of a wider effort to regulate the cryptocurrency industry, as reported by CoinDesk. On the same day, U.S. lawmakers recommended a bill that would limit business interactions with iFinex, reflecting the government’s increasing scrutiny of Chinese blockchain companies. The decision was prompted by concerns over potential unethical behavior by Tether.

The CLARITY Act is a response to China’s significant investments in blockchain technology and aims to protect American citizens’ private and national security information from potential adversaries. It specifically identifies China’s substantial blockchain investment as a potential threat. In addition to iFinex, the legislation also prohibits transactions with The Conflux Network, The Spartan Network, and Red Date Technology Co.

Key officials, including the U.S. Secretary of the Treasury, Secretary of State, and the Director of National Intelligence, have been tasked with developing a strategy to address the risks posed by foreign adversaries’ advancements in blockchain technology. This legislative action follows a previous ban on TikTok for government employees, which was implemented due to allegations that the Chinese Communist Party had used ByteDance’s secret “backdoor” to surveil Hong Kong activists’ locations and messages in 2018.

It is worth noting that this article was written with the assistance of AI and has been reviewed by an editor to ensure accuracy and adherence to journalistic standards. For more information, please refer to our Terms and Conditions.

The CLARITY Act, a new piece of legislation, has been introduced in the United States to restrict federal business dealings with Chinese blockchain firms, including iFinex, the company behind Tether, the issuer of the USDT stablecoin. This move is part of a wider effort to regulate the cryptocurrency industry, as reported by CoinDesk. On the same day, U.S. lawmakers recommended a bill that would limit business interactions with iFinex, reflecting the government’s increasing scrutiny of Chinese blockchain companies. The decision was prompted by concerns over potential unethical behavior by Tether.

The CLARITY Act is a response to China’s significant investments in blockchain technology and aims to protect American citizens’ private and national security information from potential adversaries. It specifically identifies China’s substantial blockchain investment as a potential threat. In addition to iFinex, the legislation also prohibits transactions with The Conflux Network, The Spartan Network, and Red Date Technology Co.

Key officials, including the U.S. Secretary of the Treasury, Secretary of State, and the Director of National Intelligence, have been tasked with developing a strategy to address the risks posed by foreign adversaries’ advancements in blockchain technology. This legislative action follows a previous ban on TikTok for government employees, which was implemented due to allegations that the Chinese Communist Party had used ByteDance’s secret “backdoor” to surveil Hong Kong activists’ locations and messages in 2018.

It is worth noting that this article was written with the assistance of AI and has been reviewed by an editor to ensure accuracy and adherence to journalistic standards. For more information, please refer to our Terms and Conditions.

Martin Reid

Martin Reid

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