US Senate Wants Firms to Report Crypto Investments in Chinese Technologies

The latest legislation requiring US-based companies to report any outgoing crypto investments into Chinese tech products received overwhelming support from the US Senate on July 25.

The US Senate conducted bipartisan legislation on amendments to the National Defense Authorization Act (NDAA) that restricts the outflow of technology.

The amendment is an improved version of the Outbound Investment Transparency Act proposed by Democratic Senator Bob Casey and Republican Senator John Cornyn.

It was established to address the risks associated with offshore investments in countries like China, North Korea, Russia, and Iran.

US Senate Supports Bipartisan Law Regulating US Companies

About 91 members of the 100-member Senate supported the bipartisan amendment to the NDAA, while only seven voted against it. With such overwhelmingly large support, the NDAA sets guidelines for the Department of Defense and would become law by later this year.

Notably, the amendment will mandate US-based firms to provide federal authorities with information regarding their outbound investments in Chinese technologies, such as semiconductors used in AI technology.

Commenting on the development, Casey said Congress needs this kind of Outbound Investment Act to clarify how much critical technology the US is transferring to its enemies.

The Senator ended by saying that with such pieces of information, the United States can position itself to be in control of its economic future.

This bill's current version is expected to go through the Senate by the Week's end before being reconciled with a previous bill passed by the House of Representatives. After that, the crypto lawmakers will transfer the accounts to US President Joe Biden's desk for the final endorsement.

The United States Relationship with China

These new regulations come amid the United States' counteracting relationship with China in the battle for supremacy over emerging technologies.

In June ending, US legislators announced that they are considering reducing the computing power of semiconductor chips to minimize the flow of available AI chips in the Chinese crypto market.

Sources close to US officials say that the stricter regulations would also include tightening the level of computing power in chips exported to China.

US President Joe Biden's administration originally issued these restrictions against AI chip sales to China last October to clamp down on the semiconductor industry.

Only a few days after the announcement from US officials, the Chinese government also announced plans to impose export measures on metals used for producing semiconductors.

The last move came from the United States on July 5, as it announced its plan to add restrictions to the amount of access Chinese firms will have to US-based cloud computing services. And will include products from cloud service providers like Microsoft and Amazon Web Services.

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