- tech360.tv
US Lawmakers Take Aim at Chinese Blockchains BSN and Conflux in Bill to Decouple Technology in Web3
Updated: Jan 5
In a bipartisan move, two US House representatives have introduced a bill that seeks to prevent federal agencies from using Chinese-developed blockchain networks and engaging in business with related companies.
The bill, called the Creating Legal Accountability for Rogue Innovators and Technology (Clarity) Act, prohibits executive-branch agencies from purchasing or signing new contracts for blockchain systems and services that rely on certain China-based firms.
It specifically names the Blockchain-based Service Network (BSN) and its IT infrastructure service Spartan Network, along with Red Date Technology, the Hong Kong-based tech provider. The bill also mentions Conflux Network and iFinex, the owner of Tether, the world's largest stablecoin.
The lawmakers argue that these blockchain companies pose risks to the national security and foreign policy interests of the United States. They call for regular risk assessments to be conducted on these named blockchain services by government agencies.
The BSN, founded in 2020, aims to promote the adoption of blockchain in enterprise IT systems without the involvement of cryptocurrencies. It operates an enterprise-facing blockchain infrastructure service in China and launched the Spartan Network to target businesses outside mainland China. Red Date, the technology provider for BSN, has distanced the network's international operations from China, stating that the BSN Foundation, which governs the Spartan Network, is based in Singapore and has members from various regions.
The bill directs the US Secretary of the Treasury, Secretary of State, and the Director of National Intelligence to provide Congress with actionable recommendations to address blockchain risks. It also calls for an assessment of the impact on countries participating in the Belt and Road Initiative and the potential circumvention of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment messaging system.
While the bill reflects the ongoing interest in Congress to limit the use of China-linked technology, its sponsors do not hold leadership roles or key positions in committees, making it challenging for the bill to advance to a vote. However, it demonstrates the bipartisan consensus in Washington to adopt a more competitive approach in dealing with China to safeguard economic and security interests.
US lawmakers have introduced a bill to prevent federal agencies from using Chinese-developed blockchain networks and engaging with related companies.
The bill specifically names the Blockchain-based Service Network (BSN), Conflux Network, and other China-based firms.
The lawmakers argue that these blockchain companies pose risks to national security and foreign policy interests.
Source: SCMP