Amidst developing China-US tensions, US legislators have proposed a bill to prevent federal agencies from using Chinese blockchain networks. This bill, named the Clarity Act, aims to sever ties with certain Chinese firms, reflecting a broader strategy to maintain the US’s digital control, especially in the Web3 space.
The Clarity Act: A Move to Protect US Digital Control
This move comes when US and China are already dealing with data security concerns. The proposed legislation takes direct aim at the Blockchain-based Service Network (BSN) and Conflux Network, amongst others, due to concerns over national security and data privacy. BSN, in particular, has been a cornerstone of China’s blockchain strategy, funded by state-owned entities and designed to advance blockchain use without cryptocurrencies. While BSN attempts to globalize with its Spartan Network, US officials remain wary.
Protecting Interests in the Digital Era
The bill’s introduction reflects a larger narrative of the US seeking to protect its interests in the digital era. While the Clarity Act targets blockchain, it’s part of a bigger picture where the US scrutinizes Chinese technology on all fronts, from TikTok to 5G. The bill also calls for an assessment of risks, including those posed by alternatives to the SWIFT banking network and China’s Belt and Road Initiative.
This legislative move signals a precautionary stance, ensuring sensitive American data doesn’t fall into foreign hands. However, the bill’s success is uncertain, lacking support from key committee leaders. Yet, its very existence confirms a bipartisan understanding that the US must guard its technological frontiers against rivals, especially China. This stance echoes the sentiments of US Senate Majority Leader Chuck Schumer, who advocates for a competitive yet non-confrontational stance towards China.
