U.S. lawmakers introduce CLARITY Act to limit federal ties with Chinese blockchain
Crypto News

U.S. lawmakers introduce CLARITY Act to limit federal ties with Chinese blockchain

3m
7mo ago

Furthermore, the act aims to explicitly forbid U.S. government officials from engaging in transactions with iFinex, the parent company of USDT issuer Tether. U.S. Representatives Zach Nunn and Abigail Spanberger have jointly introduced...

U.S. lawmakers introduce CLARITY Act to limit federal ties with Chinese blockchain
Furthermore, the act aims to explicitly forbid U.S. government officials from engaging in transactions with iFinex, the parent company of USDT issuer Tether.
U.S. Representatives Zach Nunn and Abigail Spanberger have jointly introduced the Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act. The legislation aims to prohibit federal government officials from conducting business with Chinese blockchain companies.
The Act would ban government employees from using the underlying networks of Chinese blockchain or cryptocurrency trading platforms. Furthermore, it would explicitly forbid U.S. government officials from engaging in transactions with iFinex, the parent company of USDT issuer Tether.
In addition to iFinex, the CLARITY Act would prohibit officials from conducting transactions with The Spartan Network, The Conflux Network, and Red Date Technology. In a statement on Wednesday, the lawmakers said that the legislation, if passed, would ensure the nation’s “foreign adversaries … do not have a backdoor to access critical national security intelligence and Americans’ private information”.

Tether was reported to have been exposed to Chinese securities and other Chinese firms earlier this year. On June 16, several news sources, including Bloomberg, disclosed that the company previously held securities from Chinese state-owned firms. Bloomberg referred to documents released by New York’s Attorney General (NYAG) and emphasized that deposits from entities like the Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China formerly supported USDT.

This revelation follows years of inquiry and concern about the assets supporting Tether’s stablecoin.

Tether’s reserves encompassed substantial short-term loans to Chinese firms and a significant loan to the cryptocurrency platform Celsius Network. Tether had previously denied any involvement with the debt of China’s troubled Evergrande Group but had not revealed its holdings of other Chinese securities.

Related: Tether issues $610M debt financing to Bitcoin miner Northern Data

Further, the U.S. SEC is also closely monitoring Tether’s operations. In September, a report suggested that the company secretly began offering USDT stablecoin loans to customers a year after Tether Holdings pledged to cease providing secured loans.

As the bill’s sponsors state, the latest move underscores Washington’s growing concerns about Chinese connections within the cryptocurrency sector.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
0 people liked this article

Related Articles

Crypto News
Top 10 Crypto Venture Capital Firms Beyond 2023
Venture capitalists step into the business terrain where the uncertain terrain of new ventures presents a greater risk than the paths walked by traditional lenders or financiers. They typically tra...
7mo ago
13m
Crypto News
Peaky Blinders and Black Mirror Are Entering The Metaverse
1 Peaky Blinders series debuted in September 2013, garnering 55.6 Million views. 2 Black Mirror holds similar ratings to Peaky Blinders on IMDb. Metaverse game The Sandbox (SAND) is bringing a coup...
7mo ago
3m
Crypto News
Ripple Partners with RocketFuel for Global Payment Revolution
Dive into the future of global transactions with #Ripple and #RocketFuel! Seamless cross-border payments and low-fee B2B transactions await. Read More The post Ripple Partners with RocketFuel for G...
7mo ago
2m
Crypto News
Why Is The Crypto Market Up Today?
The post Why Is The Crypto Market Up Today? appeared first on Coinpedia Fintech News The price of Bitcoin recorded a new yearly high, crossing the $36,500 mark for the first time in 2023. The marke...
7mo ago
2m
Crypto News
Decoding Crypto Choices for Beginners: Discover RebelSatoshi, Cardano, and Tron
TLDR As the crypto market continues recovering in Q4 2023, top crypto coins like Cardano (ADA) and TRON (TRX) have attracted massive investor interest. As a result, they have recorded notable gains...
7mo ago
5m
Crypto News
DNB Stock: Dun & Bradstreet Stock Break Above Falling Wedge
1 DNB stock price gave a breakout from the falling wedge pattern. 2 Dun & Bradstreet Stock price shows a bullish presence in the stock price. Dun & Bradstreet stock showed a strong chart structure ...
7mo ago
4m