Washington's effort to keep American money out of rival militaries' technology pipelines is about to get broader. The COINS Act set up a statutory framework that builds on the Treasury's existing outbound investment program, and the proposed rule defines countries of concern as China, including Hong Kong and Macau, as well as Cuba, Iran, North Korea, Russia, and Venezuela under the regime of Nicolás Maduro, the Treasury fact sheet said. It would require U.S. investors to notify the government of some deals and bar others outright across six fields, from semiconductors, quantum and high-performance computing to hypersonic systems, with biotechnology added at the secretary's discretion to the five Congress named, the department said in its release. Investors who have worked under the existing rules since early 2025 will recognize the structure, but the off-limits list grows considerably.
The program did not begin in Congress. It started in 2023, when then-President Joe Biden signed an executive order restricting outbound U.S. investment in semiconductors, quantum computing and artificial intelligence going into China, the AP reported. The new system would have two tiers: some transactions allowed once reported to Treasury and others barred outright, and under the proposed rule, U.S. investors would have to determine which category a deal falls into.
Not every cross-border dollar would be caught. The draft sets out excepted transactions, and where the law names artificial intelligence systems, it uses the term "super intelligence systems,". Those exceptions come with a knowledge standard. Investors would be expected to conduct a reasonable and diligent inquiry before undertaking a deal. Treasury is asking for comment on the scope of covered transactions and the definitions of key terms before it settles those lines.
The proposal is not yet binding. The public comment period closes on December 7, 2026, and the existing Part 850 regulations would continue to apply to activities until the final rules take effect. Dealmakers now have several weeks to argue over definitions that will shape which investments remain open to them.