The US Treasury has published a draft rule that would prohibit or require notification of a portion of American investments in artificial intelligence, semiconductors and four other technology families in China, Russia, Iran, North Korea and Cuba. The draft, published on Thursday 22 October, is open for public comment until 7 December.
Scope of the draft
The rule implements the COINS Act, part of the defense authorization law that Donald Trump signed on 18 December 2025. Congress designated five sectors, and the draft covers six in total. The Treasury Secretary, Scott Bessent, said the aim is to prevent “our adversaries from using American investment to develop critical technologies that threaten the national security of the United States.”
The draft is stricter than the 2024 rule, which has applied since 2 January 2025 and until now targeted only China, Hong Kong and Macao. Investment in entities of targeted countries developing such AI systems would become prohibited, with no option to notify.
Exemptions and thresholds
Listed shares, mutual funds and ETFs are exempt. A limited partner whose commitment is 2 million dollars or less is exempt. Transactions up to 50,000 dollars over twelve months are exempt from notification, though still subject to the prohibitions.
Venezuela is removed from the list because the regime of Nicolás Maduro no longer exists, after Maduro was captured and extradited to the US on 3 January 2026. The Treasury warns that some investments linked to Venezuelan entities could still be covered.
Enforcement and timetable
The Treasury will not pre-screen filings and will publish no list of affected foreign companies. It has 450 days after enactment, until 13 March 2027, to finalise its regulations.
Source: US Treasury
