Hinds Today

U.S. Senator Cindy Hyde-Smith has announced her support for the Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act (S.1223). The legislation aims to prevent countries like China and Russia from participating in or interfering with U.S. digital commodity platforms. The bill intends to prohibit the Commodity Futures Trading Commission (CFTC) from registering any digital commodity platform partially or wholly owned by organizations from China, Cuba, Iran, North Korea, Russia, and Venezuela.

Senator Hyde-Smith emphasized the importance of protecting U.S. digital markets, stating, "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." She expressed concerns about the potential risks of allowing adversaries to have influence over these markets.

The bill was introduced by Senator Tommy Tuberville, with cosponsorship from Senator Jim Justice. Tuberville criticized past administration policies, stating, "For four years, the Biden administration put America last – bowing to China at every turn and allowing our adversaries to get ahead." He emphasized the significance of the legislation, declaring, "Crypto is the future, and we have to make sure our markets are protected from bad actors like China who want to destroy us."

If passed, S.1223 would also mandate the CFTC to revoke the registration of digital platforms if organizations linked to adversarial countries acquire ownership stakes. Current U.S. laws limit regulators' ability to prevent such acquisitions.

The proposed legislation also highlights concerns over privacy and security, noting that digital commodity platforms retain sensitive user information. This raises issues related to investor protection, data privacy, and compliance with national and international regulations.