On Wednesday, November 8, U.S. legislators presented a bill that prohibits federal government officials from engaging in business with iFinex, the parent company of USDT stablecoin issuer Tether. The development comes as the US government announces a crackdown against Chinese blo...
On Wednesday, November 8, U.S. legislators presented a bill that prohibits federal government officials from engaging in business with iFinex, the parent company of USDT stablecoin issuer Tether. The development comes as the US government announces a crackdown against Chinese blockchain firms.
Tether, China and US Lawmakers
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.
The latest move underscores Washington’s growing concerns about Chinese connections within the cryptocurrency sector, as stated by the bill’s sponsors.
Cracking Down on Chinese Blockchain Firms
US lawmakers have proposed a law that would prohibit government officials from engaging in transactions with Chinese cryptocurrency firms and prohibit government employees from using Chinese blockchain networks, which support cryptocurrency trading platforms.
Chinese companies such as The Spartan Network, The Conflux Network, and Red Date Technology, which are involved in BSN projects and CBDc Digital Yuan, would be affected by this legislation.
In the coming decade, blockchain technology is likely to store sensitive private data for every American, making China’s significant investment in this infrastructure a major concern for national security and data privacy, the lawmakers noted.