United States of America: Introduced Creating Legal Accountability for Rogue Innovators and Technology Act (CLARITY Act/HR 6307)

On 8 November 2023, the Creating Legal Accountability for Rogue Innovators and Technology Act (CLARITY Act/HR 6307) was introduced in the House of Representatives. The Act defines covered distributed ledger technology and blockchain equipment or services as "distributed ledger technology and blockchain equipment or services of or originating from a foreign adversary, including any of the following parent companies or subsidiaries". Specifically listed are the Blockchain-based Services Network (BSN), the Spartan Network, the Conflux Network, iFinex Inc., and Red Date Technology Co. Ltd. The Act seeks to prohibit heads of executive agencies from acquiring, contracting, extending, or renewing agreements for any equipment, system, or service that significantly incorporates covered distributed ledger technology and blockchain equipment or services. Additionally, the heads of these agencies cannot use loan or grant funds for such acquisitions and must prioritise funding and support to help affected businesses and organisations transition away from these technologies, ensuring uninterrupted communication services for users and customers. The prohibitions will come into effect two years after the Act's enactment. Within 180 days of the Act's enactment and annually thereafter, the heads of executive agencies, including the Secretary of the Treasury, the Secretary of State, and the Director of National Intelligence, are required to submit reports to Congress. These reports will assess the risks and impacts of covered distributed ledger technology and blockchain equipment or services on various aspects, such as US financial markets, national security, international trade, and the global adoption of these technologies.