HYDE-SMITH COSPONSORS CRYPTO PROTECTION LEGISLATION
Measure Intended to Stop Adversaries, like China, from Interfering in U.S. Digital Commodity Platforms
WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) has thrown her support behind legislation to restrict the ability of adversarial countries like China, Russia, and others to participate in or interfere with U.S. digital commodity platforms.
The Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act (S.1223) would prohibit the Commodity Futures Trading Commission (CFTC) from registering a digital commodity platform that is owned in whole or in part by an entity organized or established in the People’s Republic of China, including Hong Kong and Macao, Cuba, Iran, North Korea, Russia, and Venezuela.
“We need to stop adversaries, like China, from interfering with our crypto markets and take action to ensure the integrity and security of U.S. digital commodity markets. We cannot let the growing influence of crypto be compromised by allowing our enemies to meddle within these growing markets. The risk is too great,” said Hyde-Smith, who chairs the Senate Agriculture Subcommittee on Commodities, Derivatives, Risk Management, and Trade.
U.S. Senator Tommy Tuberville (R-Ala.) introduced the measure, which is also cosponsored by U.S. Senator Jim Justice (R-W.Va.).
“For four years, the Biden administration put America last – bowing to China at every turn and allowing our adversaries to get ahead,” Tuberville said. “Thanks to President Trump, those days are over. Crypto is the future and we have to make sure our markets are protected from bad actors like China who want to destroy us. This critical bill will protect our markets and make Americans safer.”
S.1223 would also require the CFTC to revoke the registration of any digital commodity platform in the event an entity with ties to the Chinese Communist Party (CCP) or other foreign adversary acquires all or any part of the ownership of the entity. Under current law, U.S. regulators have limited tools to block the purchase of a U.S. digital commodity platform by entities linked to adversarial nations.
Digital commodity platforms collect and store personally identifiable information of their users, including Social Security numbers, mailing addresses, and sensitive financial account data. This access raises serious concerns related to investor protection, data privacy, national security, sanctions compliance, and anti-money laundering efforts.
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