CLARITY Act of 2023 Creating Legal Accountability for Rogue Innovators and Technology Act of 2023
Impact
Under HB6307, federal executive agencies are prohibited from entering into contracts or agreements that involve the use of covered distributed ledger technologies. This will require agencies to avoid using services or equipment from specified foreign adversaries, which may necessitate significant changes in how U.S. governmental functions operate in relation to technology acquisitions.
Summary
House Bill 6307, known as the CLARITY Act of 2023, is focused on addressing economic and national security risks associated with foreign adversarial blockchain networks. The bill aims to prohibit certain actions involving specific blockchain technologies and services that originate from designated foreign adversaries, particularly targeting entities linked to the People's Republic of China. The rationale behind this legislative move is the concern that these blockchain services could threaten U.S. interests by enabling economic espionage or undermining national security.
Contention
The bill also includes stringent reporting requirements. Within 180 days of the bill's enactment and annually thereafter, key government departments must provide reports detailing the risks posed by these technologies. This aims to establish a baseline of understanding regarding how adversarial blockchain technologies may be manipulating financial markets and impacting U.S. sanctions enforcement.
Future implications
As the bill progresses, it is expected to spark debate on the balance between technological innovation and security. Stakeholders may argue whether such prohibitions could also hinder legitimate technological advancements in the U.S., raising concerns about overregulation potentially stifling development in the rapidly evolving blockchain space.
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