What's Happening?
The Comprehensive Outbound Investment National Security Act of 2025 (COINS Act) has been incorporated into the Fiscal Year 2026 National Defense Authorization Act (NDAA). Signed by President Trump on December
18, 2025, the COINS Act establishes stricter regulations on outbound investments by U.S. citizens in technology sectors. The Act requires U.S. persons to notify the U.S. Department of Treasury about certain investments in 'countries of concern' such as Cuba, Iran, North Korea, Russia, and Venezuela. This expands the scope beyond previous focus areas like China, Hong Kong, and Macau. The COINS Act is designed to protect national security by regulating investments that could pose threats, and it will remain in effect for seven years unless reauthorized by Congress.
Why It's Important?
The COINS Act is significant as it aims to safeguard U.S. national security by controlling outbound investments in sensitive technology sectors. By expanding the list of countries of concern, the Act seeks to prevent foreign entities from gaining access to U.S. technologies that could be used against national interests. This legislation reflects a broader effort to adapt governance to the evolving global tech landscape, particularly in areas like AI and semiconductors. The Act's implementation could impact U.S. tech entrepreneurs and investors, requiring them to comply with new regulations that could affect their business operations and investment strategies.
What's Next?
The U.S. Treasury has 450 days to issue new or amended regulations to implement the COINS Act. This period will involve developing detailed guidelines for compliance and enforcement. Stakeholders, including tech companies and investors, will need to closely monitor these developments to ensure adherence to the new rules. The Act's impact on international business relations and potential pushback from affected industries will be key areas to watch. Additionally, the effectiveness of the COINS Act in enhancing national security will likely be evaluated over time, potentially leading to further legislative adjustments.
