The United States intends to indefinitely do away with networks developed by China used in powering cryptocurrency transactions. The new development will be rooted in the new bipartisan bill that was introduced by lawmakers on Wednesday. Recent developments in the financial world...
The United States intends to indefinitely do away with networks developed by China used in powering cryptocurrency transactions. The new development will be rooted in the new bipartisan bill that was introduced by lawmakers on Wednesday.
Recent developments in the financial world keep surging, and the US regulatory bodies have shown their skepticism toward cryptocurrencies, led by the Securities and Exchange Commission (SEC) and other proposed bills in the states. Regarding the new bill, business transactions using crypto will be limited and exiled together with Terthr’s USDT.
China vs. the US – Here’s the new Bipartisan bill
On the 8 of November 2023, a new bill was proposed by United States lawmakers that would restrict federal government officials from doing business using China-based blockchain networks.
This comes as another new proceeding in the United States’ suspicion toward the region of China related to digital currencies. Statements from individuals with knowledge of the matter have confirmed this new bill, proving their cold war on crypto.
Additionally, the bill blocks the US government businesses and officials from using crypto platforms for investment opportunities. Among the firms mentioned include iFinex, the parent company of Tether. This restriction from the world’s largest stablecoin, USDT, means transactions using this digital asset will be expelled.
US Representatives Abigail Spanberger (D-Va) and Zach Nunn (R-lowa) led the Creating Legal Accountability for Rouge Innovators and Technology (CLARITY) Act. The proposal seeks to outlaw government officials from tracking digital transactions using crypto platforms from China developers as well as cutting off these government employees from backing China-based blockchains related to crypto trading.
Nunn is a new member of the House who joined the committee this year. He commented on the bill he co-led with Spanberger and said:
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.
Zach Nunn (R-lowa)
Government officials are also banned from using networks, including The Spartan Network, Red Date Technology Co., and The Conflux Network. These are the developers behind China’s digital currency and back the region’s blockchain products, including its digital Yuan or the central bank digital currency (CBDC).
Other recent bills on crypto
Zach Nunn and Abigail Spanberger hold no prominent positions in the committee, nor are they among the leadership of the US House of Representatives. Other senior members are also pushing for amendments related to cryptocurrencies, and these bills also deal with issues involving crypto securities.
One such proceeding included Tom Emmer’s amendment proposal, which was also issued on Wednesday. The senior House member proposed an amendment to the United States Securities and Exchange Commission (SEC) activities in pursuing the crypto industry.
Emmer’s Bill intends to block the SEC’s superior authority and claims it seeks only to take legal action but not implementation of its regulatory policies.
The proposed bill also targets the SEC Chair, Gary Gensler, as Emmer’s comments showed his incompetence in leading 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.
Majority Whip Tom Emmer
This amendment is among the approved efforts that have the full support of the House committees.
In light of the latest bill proposed by Zach and Abigail, the major target of this legislation is to ensure that forgoing adversaries, including China, do not access a backdoor to critical data from the National Securities Intelligence as well as private information of Americans. The lawmakers explained this in their proposal on Wednesday.