CLARITY Act of 2023

The CLARITY Act of 2023 prohibits U.S. federal agencies from acquiring or contracting for equipment, systems, or services that use specific foreign adversarial blockchain networks (including China's Blockchain-based Services Network, Spartan Network, and others) as a substantial or essential component. It requires a two-year transition period for agencies to switch to alternative technologies, with limited waivers allowed only for compelling national security reasons and requiring detailed phase-out plans. The bill also mandates annual reports to Congress assessing risks to U.S. national security, economic interests, sanctions enforcement, and global financial systems from these technologies. This directly affects federal agencies and companies providing the banned blockchain services, focusing on mitigating threats from foreign adversaries' infrastructure.