US Lawmakers Introduce CLARITY Act to Restrict Chinese Blockchain Tech and Cryptocurrency in Government Operations

In a bipartisan effort, US lawmakers on Wednesday introduced the Creating Legal Accountability for Rogue Technologies and Innovators (CLARITY) Act, aiming to implement a complete ban on the US government's use of blockchain technology and cryptocurrencies linked to China. USA. The bill also specifically targets government dealings with iFinex, the parent company of Tether, the world's largest stablecoin.

The CLARITY Act: a bipartisan initiative

Co-led by U.S. Reps. Zach Nunn, R-Iowa, and Abigail Spanberger, D-N.J., the CLARITY Act addresses growing concerns about the security implications associated with China-based blockchain technology. Lawmakers clarified that the primary goal is to prevent foreign adversaries from having any potential backdoor access that could compromise critical national security intelligence and the private information of American citizens.

Specific objectives and national security approach

In addition to the broad ban on blockchain technology and cryptocurrencies linked to China, the bill identifies specific entities as targets, including The Spartan Network, The Conflux Network, and Red Date Technology Co. Notably, Red Date is the official architect behind of China's national blockchain project. and the development of the digital yuan, the country's central bank digital currency (CBDC).

Red Date's response and open source transparency

In response to the bill, Red Date Technology Co. clarified that its blockchain technology, specifically BSN Spartan Network, is primarily geared toward traditional IT applications rather than cryptocurrencies. The company emphasized its commitment to transparency by inviting US officials to examine its open source code, signaling its willingness to address concerns and ensure the secure nature of its technology.

Comprehensive Government Plan for Risk Mitigation

The CLARITY Act goes beyond immediate bans and proposes the development of a synchronized plan by the Secretary of the Treasury, the Secretary of State, and the Director of National Intelligence of the United States. This plan aims to "prevent the risks posed by the development of blockchain technologies by China and other foreign adversaries." The comprehensive approach underscores the government's commitment to proactively manage and mitigate potential risks associated with the proliferation of foreign-developed blockchain solutions.

Safeguard national security and privacy

At its core, the CLARITY Act emerges as an important legislative effort to safeguard national security and privacy concerns related to the adoption of blockchain technology and China-linked cryptocurrencies in US government operations as the The bill moves through legislative channels, reflecting the continued scrutiny and actions taken by lawmakers to address the changing landscape of digital technologies and their potential impact on the country's security infrastructure.